The Farming Profitability Review

Wed 4 February 2026

The Farming Profitability Review: What It Means for the Future of British Agriculture

The recently published Farming Profitability Review, led by Baroness Batters and released on 18 December, marks one of the most significant evaluations of English agriculture in years. It sets out 57 recommendations designed to strengthen farm businesses, improve supply‑chain fairness, unlock investment, and ensure long‑term food security.

Commissioned to examine barriers to profitability and resilience, the review draws on extensive industry insight, international examples, and academic research. Its message is clear: farming is a unique sector that requires stability, fair returns, and strategic support in order to thrive.

One of the headline outcomes is the creation of a new Farming and Food Partnership Board, chaired by the DEFRA Secretary of State, giving farmers a stronger voice in shaping national policy on domestic food production, profitability and food security. DEFRA has also committed to further action on supply‑chain fairness, improvements to planning via the National Planning Policy Framework, and driving nature‑positive approaches through the Environment Improvement Plan.

Below is a clear breakdown of the Review’s major themes and key recommendations.

1. Valuing Food & Farming

The Review calls for government to better recognise the full value of British farming in national economic measures. This includes reassessing farming’s contribution to GDP covering both primary and secondary processing, and integrating natural capital accounting into national frameworks.

2. Resilience & Viability

To strengthen farm business stability, the Review proposes:

• A dedicated resilience support scheme for farmers who haven’t yet accessed the SFI.
• Simplifying SFI delivery.
• Ensuring the farming budget supports active farmers only.

3. Soilshot & Nature

A major environmental focus includes:

• Creating a SOILSHOT+NATURE taskforce.
• Developing consistent metrics for carbon in setting and nature impacts.
• Mandating nature reporting for UK corporate supply chains under TNFD.
• Promoting whole‑farm approaches to soil health and emissions reduction.

4. Partnership Approach & Export Growth

A new Great British FARM Advisory Board (GBFAB) would help boost domestic sales of British ingredients and grow exports by 30% by 2030. The Review also recommends embedding circular‑economy thinking in agricultural policy.

5. Protecting and Promoting the British Brand

Recommendations include:

• Supporting TAC guidance on global agricultural standards.
• Protecting farming and food as “sensitive sectors” in trade policy.
• Strengthening assurance behind British branding across retail and out‑of‑home markets.

6. Supply‑Chain Fairness

To address long‑standing issues around power imbalances, the Review proposes:

• Extending the remit of the Grocery Code Adjudicator (GCA) and GSCOP.
• Embedding legally enforceable “Golden Rules” for fair dealing.
• Improved price and market transparency through enhanced monitoring.

7. English Food Culture

The Review calls for:

• Updating buying standards across all public sectors.
• Creating Food and Drink England to champion local producers and strengthen regional food identities.

8. A Sustainable Farm Service

A simplified, centralised advisory system, The Sustainable FARM Service, would streamline technical guidance, while research bodies (including BBSRC and Innovate UK) would align efforts around commercial needs and sector‑specific priorities.

9. People, Labour & Skills

Key labour recommendations include:

• Integrating agriculture into STEM education to attract young talent.
• Creating “Agri‑Growth Hubs” to support regional farmer networks.
• Extending the Seasonal Worker Visa to nine months.
• Implementing Shropshire Review findings on labour shortages.

10. Tenancy Reform

The Review suggests strengthening the Tenant Farming Commissioner with statutory powers and incentivising long‑term tenancies through targeted tax reforms.

11. Tax Incentives, Grants & Investment

Major financial recommendations include:

• Allowing sole traders and partnerships to access full expensing of plant and machinery.
• Reviewing capital allowances to ensure they work for farmers.
• Introducing 0% soft loans via the British Business Bank for new entrants and business expansion.
• Streamlining grants and widening access to productivity funding.

12. Planning Reform

To reduce barriers and speed up investment:

• A National Planning for Food Infrastructure Blueprint would embed food production in planning decisions.
• Remove duplicative slurry and muck‑spreading requirements.
• Extend permitted‑development rights for livestock buildings beyond 1,000m².

13. Energy & Connectivity

The Review supports:

• Expanding permitted‑development rights for farm wind turbines and reservoirs.
• Ensuring better rural connectivity through District Network Operators.

14. Water Management

Recommendations include embedding Agri‑Growth Hubs in implementing water abstraction reform and ensuring extended permitted‑development rights for reservoirs.

15. Regulation

A wide-ranging regulatory review is proposed to:

• Move towards outcomes‑based, risk‑focused regulation.
• Modernise approvals for biological crop protection.
• Reduce bureaucracy for small abattoirs.

What This Means for Farmers

The Farming Profitability Review outlines a blueprint for a more fair, productive, and resilient farming sector. From supply‑chain fairness to planning reform, tax incentives to environmental metrics, the recommendations aim to create an environment where British farmers can invest with confidence and be rewarded fairly for the food and public goods they deliver.

If implemented fully, these changes could mark a turning point for domestic food production and rural prosperity.

For further information, please contact Merovee Churton.

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