.png)
In recent months, frustration has spilt into the streets—most visibly in Parliament Square, where farmers arrived in tractors and on foot to protest against newly announced changes to inheritance tax relief. Under the new rules, farms that previously paid no inheritance tax on land and assets will now face a 20% tax on amounts above £1 million starting in April, compared to the standard 40% rate. This move has fueled long-standing frustrations over low farm-gate prices and confusion surrounding the UK’s post-Brexit agricultural payment schemes.
This latest standoff follows ongoing discontent over low farm-gate prices, post-Brexit subsidy confusion, and mounting pressure to balance food production with environmental conservation mandates.
Government’s Response: A ‘New Deal for Farmers’
Speaking at the Oxford Farming Conference on 9 January, Environment Secretary Steve Reed sought to reassure farmers, acknowledging the wave of challenges that have reshaped British agriculture—from soaring input costs due to the energy crisis to the increasing volatility of climate change-driven floods and droughts. He also recognised post-Brexit trade complications, which have disrupted imports of essential materials and exports to the EU.
A central sticking point has been the UK’s departure from the EU’s Common Agricultural Policy, leading to the design of new, domestically crafted payment schemes. These initiatives, including the Sustainable Farming Incentive, have attracted over 50% of England’s farmers, yet uncertainty remains over whether these programs sufficiently balance food security with nature restoration.
Reed sought to allay fears that nature creation or restoration would be valued above food production. He said: “The primary purpose of farming has – and always will be – to produce the food that feeds the nation. Whitehall too often loses sight of that fact.”
However, he emphasised that “restoring nature is vital to food production, not in competition with it”, adding: “Healthy soils rich in nutrients and organic matter, abundant pollinators and clean water are essential for sustainable food production. They are the foundations farm businesses rely on to produce high crop yields and turn over a profit. Without nature, we cannot have long-term food security. “
Reed outlined a New Deal for Farmers to restore trust, promising structural reforms and expanded economic opportunities.
Among the key pledges:
Planning reforms to allow farmers to diversify income streams.
New policies enable farms to sell self-generated renewable energy.
A government procurement commitment, ensuring 50% of publicly sourced food is local and meets high environmental standards.
Fairer contract terms for pork, eggs, and fresh produce.
A review of flood defense funding, expediting protective measures for farmland.
Stronger protections for British farmers in international trade deals.
While these reforms address long-term structural concerns, they fail to tackle what many see as the core issue—the financial sustainability of food production. Reed did not commit to ensuring that retailers pay farmers more for their products, a glaring omission given the stark economic reality:
Farmers earn just 1p in profit from a block of cheese or a loaf of bread and a mere 3p per kilo of apples, according to charity Sustain.
WWF’s head of food production policy, Sofia Parente, said: “British farmers are currently operating in a broken food system, without adequate support from government and across the supply chain to help them move to sustainable practices. This New Deal for farmers must enable a meaningful transition to nature-friendly farming that is both well-funded and fair.
“The Secretary of State spoke of the need to protect our high environmental standards in future trade deals; this should include putting core environmental standards in domestic law so that UK farmers are not undercut by substandard imported products with higher environmental impacts.”
The Soil Association’s policy director, Brendan Costelloe, said: “These commitments from the government are welcome, particularly the vow to protect our farmers in trade deals, as this will help create a more level playing field for nature-friendly farming.
“But if the Secretary of State wants to achieve his goal of long-term food security, profitability and sustainability for our farming sector, then simply monitoring for British food in public institutions will not be enough. We need mandatory standards that actively help to get more British food on the public plate, especially local fruit and veg in schools and hospitals – and we must make sure this is coming from nature-friendly farms like organic.
“The proposed planning reforms will also need to be aligned with broader sustainability goals. This means putting a stop to destructive forms of food production and preventing the construction of new intensive poultry units, such as those that are destroying UK river ecosystems.
“The Government’s forthcoming food and farming strategies need to be bold, and they need to be aligned so they can drive the kind of farming we need to protect climate and nature by creating better markets for healthy and sustainable food and putting a stop to harmful practices.”
Patrick Holden, founding director of Sustainable Food Trust, added:
“At a time when the farming community needed to see real leadership from the government, this feels like a hugely missed opportunity for this administration. Farming has the potential to help meet several of Labour’s big goals on economic growth, nature, climate, and health. But to do this needs an ambitious, cross-governmental, plan.
Industry leaders argue that government support must go beyond piecemeal incentives and shift towards wholesale transformation, ensuring sustainable, regenerative farming becomes viable and profitable. Without this shift, they warn, the sector risks further disillusionment, declining investment, and an exodus of future generations from agriculture.
“Being realistic, it’s clear the Government will not meet this gap. This provides a huge opportunity for the private sector to step up by introducing new financing mechanisms which could reward farmers for the social value they provide – such as soil health, biodiversity, clean water, good animal welfare, and social benefits for the community.”
Comments