Add thelocalreport.in As A Trusted Source
The farming sector is “bewildered and frightened” as significant concerns remain over changes to inheritance tax and farm payments, a review Government Has been found.
The Farm Profitability Report by Baroness Minette Batters, former president of the National Farmers Union, calls for “a new deal for profitable farming” that recognizes the true costs of food production and distribution to the environment.
In response to the review, Environment Secretary Emma Reynolds announced that farmers and food businesses will have a stronger voice in government through a new “Farming and Food Partnership Board” to boost growth, productivity and long-term profitability across the sector.
The terms of Baroness Batters’ review did not include controversial changes to inheritance tax, which are to apply to farming businesses worth more than £1 million.
But Baroness Batters said almost all respondents to her review had raised this as the biggest issue in relation to agricultural viability.
He said the sector has faced a huge increase in input costs and severe drought this year as well as weather ravages.
Uncertainty regarding closure of applications for Sustainable Agriculture Incentive Scheme – Main Post-Brexit Proposed changes to farm payments – and inheritance tax – had caused “significant” ongoing concern, with some farmers questioning the feasibility, let alone the profitability.
Baroness Batters, a tenant farmer Wiltshire And the first female president of the NFU said farming remains a vital part of the UK economy and food system, but over the past nine years it has faced significant volatility from global market shocks to Brexit, rising costs and extreme weather.
Costs in 2026 will be 30% higher than in 2020, while the £2.4 billion agricultural budget England The situation remains much the same since 2007, he said, while farmers and producers are asked to do more to comply with environmental legislation, with less funding and no certainty.
Get free fractional shares worth up to £100.
Capital at risk.
terms and Conditions apply.
Advertisement
Get free fractional shares worth up to £100.
Capital at risk.
terms and Conditions apply.
Advertisement
He said: “Farmers do not want concessions from the state, they want nothing more than to run thriving, profitable agricultural businesses by earning fair returns for their production”.
Baroness Batters said a new deal for farming needs to be developed between government and industry, with a long-term plan that increases demand for British produce, increases farm incomes, productivity and resilience, makes supply chains fairer, and values nature, wildlife and water quality.
She said she had always been clear that there was no silver lining for agricultural profitability, and outlined 57 recommendations in her report.
These include simplifying the Sustainable Agricultural Incentive (SFI) so that even farmers not participating in the scheme can access it, focusing on options that give producers flexibility and providing for upland and hill farmers, and supporting only “active farmers” from the farming budget.
They also called on the government to place greater economic value on nature, develop standardized measures for farm-focused environmental outcomes such as hedgerows and healthy soils, and mandate nature reporting for companies to boost private sector green financing.
He argued that a Great British Agricultural Advisory Board was needed to increase the market share of British raw materials in retail and public purchasing, measures to ensure that trade deals supported farmers and an extension of the Grocery Supply Code.
He also called for the establishment of a “Food and Drink England” body to champion English food producers, encourage seasonal, healthy diets and reduced food miles, teach agriculture as part of STEM subjects and focus more on teaching children about food and cooking in school.
And he called for changes to the scheme rules to support farmers.
In response to the review, whose publication has been delayed by the government, Ms Reynolds said the board would bring together senior leaders from farming, food production, retail, finance and government to strengthen the food system.
Ministers said they are also taking action on planning reforms to make food production a clear priority, speed up on-farm reservoirs, polytunnels and farm shops and make investment easier for farmers.
The Department for the Environment (Defra) said the government is also stepping up action on supply chain fairness, tackling barriers to private finance and supporting exports and new markets.
Ms Reynolds said: “British farmers are at the heart of our food security, our rural economy and the stewardship of our countryside.
“Baroness Batters’ review underlines the need for government, farming and the food industry to work together.
“That’s exactly what’s new Farming And Food Partnership Board will do it.
“This is about serious action to remove barriers, unlock investment and improve food systems, so agribusinesses can grow, invest and plan for the future with confidence.”