A landmark government review has issued a stark warning, describing the UK's farming sector as "bewildered and frightened" due to a combination of economic pressures and policy uncertainty. The report, authored by former National Farmers' Union president Baroness Minette Batters, calls for urgent action to secure a sustainable future for British agriculture.
A Perfect Storm of Pressures
The review, published on Thursday 18 December 2025, highlights a severe crisis in farm profitability. Baroness Batters details how the industry is grappling with a sharp rise in input costs and the increasing frequency of extreme weather events, including a severe drought this year. These challenges are compounded by significant anxiety over two major government policy areas.
While the official terms of the review did not cover the controversial changes to inheritance tax, which are set to apply to farm businesses valued over £1 million, Baroness Batters stated it was raised as the single biggest threat to farm viability by nearly all respondents. This, coupled with uncertainty surrounding the closure of applications to the Sustainable Farming Incentive (SFI) scheme, has created a climate of deep concern.
The Call for a 'New Deal'
In response to these mounting pressures, the farm profitability report makes a direct appeal to the Government. It urges the creation of a "new deal for profitable farming" that properly recognises the true cost of producing food while also delivering environmental benefits. The report argues that current systems and proposed changes are leading some farmers to question the basic viability of their businesses, let alone their ability to turn a profit.
The SFI scheme is the main replacement for the old EU Common Agricultural Policy payments post-Brexit. The uncertainty over its future application process has added another layer of instability for an industry already facing volatile markets and climate impacts.
Implications for UK Food Security
The findings of the Batters review point to serious consequences if the situation is not addressed. A sector that is frightened and questioning its future viability poses a direct risk to the UK's domestic food security and its environmental goals. The report serves as a clear signal to policymakers that the farming community feels under unprecedented strain and requires a more stable, supportive, and long-term framework to operate within.
The review underscores that profitability is not just a business concern for individual farmers but a foundational requirement for a resilient agricultural sector. Without it, the report suggests, the government's ambitions for environmental land management and a secure food supply chain could be severely undermined.
