Policy paper

Government response to the Farming Profitability Review

Published 24 June 2026

Ministerial foreword

A resilient and productive farming sector is central to the security of our food system and to Britain’s wider economic growth. I have spoken with farmers across the country, from horticultural businesses to upland livestock farmers. I have seen first hand their unwavering commitment to producing the food we rely on while stewarding the landscapes that define our nation. Those conversations have reinforced a simple truth: farm businesses must be able to thrive if we are to secure our food supply, grow our rural economy and navigate volatility with confidence. My priority is to provide the stability, transparency and long-term direction farmers tell me they need to invest, adapt and prosper.

I want to thank Baroness Minette Batters for her leadership, insight and deep knowledge of the farming sector, and everyone who contributed their time, experience and expertise to her review. The evidence gathered, and the frank conversations had, have directly shaped this government’s response and informed the 25-year long-term direction set out in the Farming Roadmap, published alongside this document.

The review offered a clear-eyed assessment of the challenges facing farm businesses; from input cost pressures and supply chain imbalances to access to finance, skills and land. But it also underlined the sector’s capacity to play a pivotal role in driving Britain’s economic growth. The review’s recommendations for stronger, more coordinated partnership between government and industry, improved data to drive productivity, smarter regulation and more targeted innovation are central to this government’s vision for a thriving rural economy.

Since the review was commissioned, we have already made significant progress. We have:

• established the Farming and Food Partnership Board in direct response to the review’s recommendations, bringing together senior leaders from farming, food, retail and finance to drive profitability and strengthen domestic food security. The board has now met twice and commissioned the first Sector Growth Plans, for poultry and horticulture
• announced a new Sustainable Farming Incentive offer for 2026 that is simpler, fairer and more accessible, particularly to smaller farms
• committed at least £200 million to the Farming Innovation Programme by 2030, and opened a £50 million Farming Equipment and Technology Fund to help farmers invest in the equipment and technology that boosts productivity and cuts costs
• continued supporting UK agri-food exports, resolving an estimated £125 million in export barriers in 2025 and delivering the UK’s first agri-food trade mission to the USA, promoting beef exports
• extended the Seasonal Worker Visa route to 2030, providing the labour certainty the sector needs
• launched a £30 million Farmer Collaboration Fund to help groups of farmers grow together, share best practice and identify new commercial opportunities

These measures reflect a deliberate shift in how this government approaches farming policy. We are taking a whole-system view of the factors that shape farm performance, from supply chain fairness and market transparency to planning, regulation and access to private investment. The Farming and Food Partnership Board will continue to drive that collaboration, with Sector Growth Plans being developed across key sectors to translate shared ambition into practical action.

Many of the review’s recommendations have been directly incorporated into the Farming Roadmap, which sets out our vision for the sector through to 2050, and includes actions we will take to deliver that vision. The 2 documents should be read together. Where this response focuses on actions arising from the review, the Roadmap also provides the stable, long-term direction that farmers and investors need to plan with confidence.

Delivering on these commitments will require continued partnership with farmers, land managers, representative bodies, environmental organisations and the wider agri-food sector. I am committed to that ongoing engagement by listening to what is working, being honest about what is not, and adapting our approach as we move forward together.

British farming has always adapted. The ambition of this review, and of this government’s response, is to ensure that the next chapter of that story is one of genuine growth. Together, I’m determined we can deliver a sector where farm businesses are more profitable, more competitive, and better equipped to deliver for food, nature and climate together.

Emma Reynolds Secretary of State for Environment, Food and Rural Affairs

Introduction

This document sets out the government’s response to the Farming Profitability Review 2025 (FPR).

Farming plays a central role in maintaining the nation’s food security, supporting the rural economy and managing the natural environment. The government is committed to creating the conditions in which farm businesses can be profitable, resilient and confident to plan for the long term.

In April 2025, the then Secretary of State for Environment, Food and Rural Affairs Steve Reed appointed Baroness Batters to lead a 6-month review into farming profitability. The government commissioned this review to examine how we can support farm businesses to become more profitable and to identify the key barriers that currently limit resilience and long-term viability. The review also considered how the wider supply chain could contribute to fairer returns for farmers, as well as the broader opportunities to drive profitability and economic growth across the sector. The FPR was published on 18 December 2025.

The government thanks Baroness Batters for the review which has already significantly influenced government policy. This response sets out the government’s position on the review’s recommendations, progress to date in implementing a number of these recommendations, and the further actions we will take. The review and the government’s response have also directly informed the priorities and direction of the Farming Roadmap which sets out a long-term vision for the farming sector.

Overview of response

A strong, competitive domestic farming sector is central to the UK’s national security, and we are determined to back British farmers as they build a productive, profitable and sustainable future.

The FPR reinforces the clear message that long-term profitability cannot be delivered by subsidies. Profitable farming ultimately depends on strong skills, resilient and efficient businesses, well-functioning markets, fair supply chains and the capacity and ability within the sector to innovate and adapt.

Our vision, set out in the Farming Roadmap 2050 is for a sector that is profitable, resilient and sustainable over the long term, underpinned by a healthy natural environment. Since leaving the EU, we have undertaken a major programme of reform to move away from untargeted subsidies towards support that rewards environmental outcomes, improves productivity and strengthens resilience. This includes record investment of £11.8 billion this Parliament and a rise in Environmental Land Management funding from £800 million in 2023 to 2024 to £2 billion by 2028 to 2029. As a result, more than 50,000 farm businesses, covering around half of all agricultural land, are now participating in our schemes, and the transition is shaping business decisions across the sector.

Long term farming profitability depends on the health of the natural environment. Soil, water and ecosystems underpin productivity and resilience, and where these are degraded, costs and risks increase. Actions that improve environmental outcomes can therefore strengthen long-term farm performance and support a more resilient, competitive sector.

The FPR highlights that farm profitability is shaped not only by on-farm actions, but by the wider economic, regulatory and supply chain environment in which farm businesses operate. In response, we are broadening our approach to take a more strategic, whole system view of the factors that influence farm performance, in line with the approach set out in the Good Food Cycle.

To help drive this shift, and in response to one of the review’s recommendations, we have established the Farming and Food Partnership Board, bringing together senior leaders from across the farming and food system and government to strengthen collaboration, remove barriers to investment and improve how markets function. Its actions will also support growth and improve our domestic sector’s contributions to national food security. The board has already commissioned the first Sector Growth Plans, for horticulture and poultry,

We are enhancing cross-government working to ensure farming is reflected in decisions on growth, infrastructure and regulation, and providing greater long-term clarity through the Farming Roadmap. This coordinated approach will help build the stable environment needed for investment, innovation, and resilient, profitable farm businesses.

The findings from the review make it clear that there is no single route to profitability. For some farms this will involve expansion or specialisation; for others it will come through collaboration, diversification or developing new income opportunities which work alongside food production. Small farms can be highly productive and profitable, and we remain committed to a diverse, innovative and dynamic sector, not one dominated by a small number of very large operations. This includes supporting better succession planning, lowering barriers for new entrants and improving pathways for those bringing new skills and ideas into the sector. The Farming Roadmap provides more details on the vision for a forward-looking, thriving farming sector.

The review sets out that one route to profitability for some businesses will be through driving private sector investment into sustainable farming for food production. In line with the review’s recommendation, we will (look to) establish a task and finish group of the Farming and Food Partnership Board to bring together investors and industry stakeholders to explore this question.

The review emphasises the importance of strong management capability, skills and peer-to-peer learning to enable farmers to run adaptable, profitable businesses. We are acting on this through the new £30 million Farmer Collaboration Fund, which will support groups of farmers to grow their businesses, build partnerships and share best practice, helping them to identify new commercial opportunities and strengthen their long-term performance.

We are also taking action to ensure markets work better for farmers. Fair and transparent supply chains, high quality market data and clearer value sharing are essential to profitability. Our reforms to supply chain enforcement, including the transfer of sponsorship of the Groceries Code Adjudicator to Defra, will strengthen coordination, improve oversight and deliver a more consistent approach to fairness across the food system. Together, this supports a whole-farm approach to profitability, recognising that farm success depends not only on on-farm decisions and support, but also on how effectively supply chains operate and how risk, reward and value are shared.

We have grouped the response into 7 themes which detail the broad range of actions government is taking now to support long-term farming profitability, as follows:

• growing markets and embedding partnerships

• establishing fairer supply chains

• removing barriers and enabling infrastructure

• tax incentives and grant schemes

• developing people and skills

• research, innovation and technical support

• valuing nature and environmental outcomes

Taken together, this response reflects a shift towards a broader strategy for a more productive, skilled, competitive and resilient farming sector, supported by fair markets, better data, stronger supply chains, improved skills and management capability, mobilised private investment and a long-term whole-farm approach.

Growing markets and embedding partnerships

Growing markets and building strong partnerships across the food system are essential to improving farm profitability and increasing domestic production. Our intent is to work more strategically with industry and the wider supply chain to support a whole-farm system approach that better connects on-farm decisions with commercial opportunities. Our focus is to create the conditions for British food to succeed at home and abroad, including through fair trade and the strong promotion of British produce.

Farming and Food Partnership Board

We strongly agree with the review’s conclusion that improving farm profitability requires sustained partnership working between government, farmers, growers, the food and drink sector, retailers, finance, and the wider supply chain. Only through collaboration can we unlock productivity gains, grow markets and enable farm businesses to thrive.

In response to the review’s recommendations, we have established a new Farming and Food Partnership Board. Reflecting the review’s emphasis on a more strategic system-wide approach, the board provides a forum to:

• improve collaboration

• oversee progress on shared priorities

• support efforts to increase opportunities for our farmers and growers across retail, out-of-home, export markets and public procurement

This approach demonstrates the government’s commitment to:

• working in partnership with industry to drive growth

• strengthen domestic supply chains

• support a profitable and resilient food and farming sector

The board first convened in March 2026, with Defra Secretary of State Emma Reynolds as Chair and Minister for Food Security and Rural Affairs Angela Eagle as deputy. It brings together senior representatives from across the food system to support farm productivity and profitability, while strengthening domestic food security. Members have aligned around the need for stronger cross-government and industry coordination to drive improvements in productivity and profitability, aided by a shared and trusted evidence base, and a clear programme of work spanning the food system. Members are actively shaping how this programme will translate into practical actions and measurable outcomes.

Improving the use of data is a core delivery priority. A clearer picture of domestic production, supply and demand, and the role of imports is essential to support resilient and profitable farm businesses. As part of its early work, the board will consider the review’s recommendation to develop a national balanced scorecard to monitor domestic product supply and demand dynamics, including options for its scope, design and data requirements.

The commissioning of Sector Growth Plans has been one of the first actions for the Board. These plans will be a central part of our response to the Farming Profitability Review, setting out focused packages of actions tailored to our diverse farming sectors. Plans for the horticulture and poultry sectors are underway and others will follow, supported by oversight from the Board. Defra is bringing industry experts together to consider opportunities to improve productivity and profitability, identify barriers to growth and agree actions across production, market development, investment and innovation. They will also identify where change is needed by businesses, supply chains and government. Together the plans will set a clear shared vision and direction for each sector to boost confidence, stimulate innovation, attract investment and strategically drive growth, as well as strengthening national food security.

Exports and international trade

Trade plays a crucial role in farm profitability. We want trade agreements to create valuable opportunities for British farmers by opening new international markets for British produce while supporting a thriving domestic agricultural sector and, where necessary, protecting our most sensitive sectors. We have a strategic delivery plan for minister led trade missions throughout 2026 which will focus on priority export markets with high growth potential, building on the successful mission by the Defra Secretary of State and industry representatives to the USA in March 2026 promoting UK beef exports. This includes a rolling programme of further inward and outward trade missions over the next 12 months focussing on priority markets.

We agree with the review on the importance of growing our export market in a way that works with and sits alongside the needs of our domestic markets.

We continue to drive export growth in partnership with industry by broadening market access, resolving trade barriers and removing frictions. Our global network of 16 agri-food attaches are opening up opportunities for UK businesses and supporting them to enter key growth markets.

Imports help to support UK farming profitability while also helping to keep food prices affordable for consumers. Efficient imports help keep inflationary pressure on farm inputs down and contribute to productivity, food security and the wider rural economy.

We are negotiating a Sanitary and Phytosanitary (SPS) agreement with the EU, our closest and largest trading partner, to make trade easier and cheaper. The agreement will deliver practical benefits for farmers. Those trading with the EU will spend less money on paperwork at the border. Fresh produce will reach supermarket shelves quicker, supply chains will become more resilient, and trade in products such as seed potatoes will resume, opening the EU market for these goods.

The review also recommends upholding standards in trade, and promoting global standards on environment, welfare and labour rights. We will continue to work to reform the global trading system so that it facilitates and supports a global transition to resilient and sustainable agriculture and food production. We will build support at key multilateral institutions for robust biosecurity approaches and for the promotion of high food safety, plant health, animal health and welfare, and environmental standards.

As the review recognises, we have already committed in our Trade Strategy to never lower our food standards and to uphold our high animal welfare and environmental standards. This is reflected in the Free Trade Agreements (FTAs) we have signed to date. When considering new FTAs, we will continue to carefully consider whether overseas produce has an unfair advantage and identify any impacts this may have on the UK’s farming industry. Where necessary, and in line with the review recommendations, we will be prepared to use the full range of powers at our disposal to protect UK production against unfair competition, including permanent quotas, exclusions and safeguards. For example, the trade deal with India agreed in May 2025 and the recently agreed deal with the Gulf Cooperation Council both reflect the priorities of the farming sector, including opening up new opportunities for UK agricultural exports and excluding pork, chicken and eggs from tariff reductions. We will continue to champion the interests of British farming in future trade deals.

We support and welcome the continued role of the UK Trade and Agriculture Commission. As an independent body it provides an essential component of the overall scrutiny process for new FTAs, which the government fully endorses. The government also publishes impact assessments for new FTAs that include, amongst other elements, the economic estimates of changes to the domestic agricultural sector as a result of any FTA that is agreed.

Promoting British and local food

We recognise the importance of promoting British and local food to protect the integrity of British produce, support domestic producers and encourage more environmentally sustainable and healthy diets. We know that many consumers value the opportunity to buy British and support their local food economy.

The review recommends strengthening retailers’ voluntary principles on country-of-origin labelling, expanding them to include the out of home sector. We have assessed this recommendation and continue to monitor how origin information is presented and the commitments supermarkets have made. As a part of this we continue to look at what more can be done to help give consumers confidence that they have the information available to them to make informed choices wherever they purchase food.

Current rules already provide a strong framework for protecting the integrity of British food labelling. Under existing rules, any food that is not classed as UK origin cannot be presented (or implied, for example by using a Union flag) as being British. Food products manufactured in the UK are British products, some of which are recognised internationally. But if these contain a primary ingredient that is not British, then a British claim can only be made on the label if the label also highlights that the primary ingredient is not British. Food simply re-packaged in the UK, without any further processing, does not confer UK origin on it.

Major retailers go further by having already committed in the 2010 ‘Voluntary Principles on Country of Origin Labelling’ to only include Union flags or imagery on products containing meat or dairy products when these products have been sourced from the UK.

We remain committed to upholding high standards of food information, whether on food labels or within hospitality settings.

Our consideration of the review’s recommendations will take account of the SPS agreement with the EU. On Monday 9 March, the government published a list of all the legislation that Defra considers as currently being in scope of the agreement, including Food Information to Consumers (1169/2011) and General Food Law (178/2002) which contain provisions relevant to elements of the recommendations. The full list remains subject to ongoing negotiations and may therefore change.

The review also recommends that government establishes Food and Drink England within the existing Food Strategy Board (to mirror the equivalent bodies in Scotland, Wales and Northern Ireland) to champion English food producers, develop our national food culture and unlock regulatory barriers.

Backing British farming and food production is a core priority for Defra and building vibrant food cultures at national and local level is a key tenet of the Good Food Cycle. We have no plans to establish a new body to oversee this. However, as we drive forward work to deliver on Defra priorities and the outcomes in the Good Food Cycle, we are working across government to:

• improve diets (for example through the Department of Health and Social Care 10 Year Health Plan)

• support exports and premium UK products (through the GREAT campaign and work to improve market access for food and drink producers by reducing tariff barriers through Free Trade Agreements and resolving non-tariff barriers, and our network of 16 agri-food attaches located in key export markets)

• strengthen local food systems by improving access for Small and Medium Enterprises (SMEs) and local suppliers to public sector procurement processes

• through our new Food Inflation Gateway, monitor and assess regulation for its impact on the food sector and enable government to take more coordinated action to unlock regulatory barriers

Defra has already established the new Farming and Food Partnership Board to build closer partnership across the agri-food system and develop Sector Growth Plans. This is coupled with the existing Food Strategy Advisory Board which consults on government food strategy, and regular engagement between trade associations and government to share information to manage shocks to the food system. Government also has robust stakeholder engagement at all levels across the agri-food system.

Public procurement

Our commitment to farmers and growers remains steadfast, which is why we want our farmers to be primed to bid for a fair share of the £5 billion pounds a year spent on public sector food and catering contracts, while remaining consistent with international and domestic procurement rules. The National Procurement Policy Statement already sets expectations for government contracts to favour products certified to high environmental standards, which high-quality British producers are well placed to meet.

We welcome the review’s alignment with the government’s ambition to increase the proportion of locally sourced food within the public sector. We will consider all lawful means of achieving the ambition that half of all food purchased across the public sector should be locally produced or certified to higher environmental standards.

We continue to engage closely with suppliers, contracting authorities and delivery partners across public sector supply chains. As part of this, we are exploring potential policy options, including whether updates to the Government Buying Standards for Food and Catering Services (GBSF) could better support our objectives. The GBSF set the requirements for sourcing, cooking, and serving of food in central government departments, executive agencies, prisons, hospitals and the armed forces. Cabinet Office guidance strongly recommends that all public bodies should use them. Although the GBSF are not mandatory in education settings, Defra are working closely with the Department for Education (DfE) to explore how best to deliver our combined ambitions to improve school food procurement practices to deliver better health, environmental and local growth outcomes.

We recognise the review’s assessment that there is limited existing data on the origin and sustainability of food in the public sector supply chain and the data landscape is complex and fragmented. We are exploring options to improve data availability and have begun data collection, which will provide us with detailed insights on the extent to which public sector settings are serving food from local, SME and sustainable sources, and what more can be done.

We agree with the review’s recommendations highlighting the importance of building relationships on public procurement at a local level to strengthen links between producers and public sector buyers and improve market access.

We are working in partnership with Local Authorities (LAs) to build understanding of the key success factors which underpin examples of best practice in delivering excellence in public sector food provision at a local level and how this can be replicated elsewhere. In March 2026, Defra provided £775,000 in funding across 5 LAs (Bury Council, Middlesbrough Council, Brighton and Hove City Council, Bristol City Council, Cambridge City Council) to improve the quality, sustainability and nutritional value of food served across the public sector. The LAs will have flexibility in how the money is spent, but potential activities, such as facilitating meet the buyer events, codesigning of menus in public sector settings, and improvements to data collection processes, will directly support stronger local relationships, greater transparency and increased opportunities for local producers. Their participation will help us build a robust understanding of effective approaches, with lessons learned to be shared more widely across the sector. We have also appointed an evaluation partner to ensure we generate useful and practical insights to inform future policy development.

Circular economy

We welcome the review’s recommendation to consider the circular economy within farming policy. This government is committed to transitioning towards a circular economy, where resources are kept in use for longer and waste is designed out. We support measures that make best use of resources and reduce waste and incentivise these through mechanisms such as Environmental Land Management (ELM) schemes, for example precision farming and nutrient management actions, as well as research and development through the Farming Innovation Programme. Defra is a co-funder of the Waste and Resources Action Programme (WRAP), which delivers advice and technical and financial support on waste reduction and resource efficiency across a broad range of businesses, including farms.

Establishing fairer supply chains

Fair, transparent and well-functioning supply chains are essential to improving farm profitability, ensuring farmers are not disadvantaged by unequal bargaining power in the supply chain. To support this, we are working to improve transparency and balance across the food supply chain, particularly in relationships between retailers and suppliers, and supporting actions on fairness, oversight and the availability of market information.

Groceries Code Adjudicator and Fair Dealings Regulations

We welcome the review’s recommendation to strengthen protections against unfair trading practices across the supply chain, including consideration of the scope and operation of the Groceries Supply Code of Practice (GSCOP) and the role of the Groceries Code Adjudicator (GCA). We recognise the importance of ensuring that regulatory frameworks remain effective, proportionate and responsive to market developments.

We have already acted to strengthen oversight across the agricultural supply chain. In response to the review’s recommendation, we have announced the transfer of sponsorship of the Groceries Code Adjudicator from the Department for Business and Trade (DBT) to Defra. This brings responsibility for both the Groceries Code Adjudicator and the Agricultural Supply Chain Adjudicator under Defra ministers. Bringing this together will improve collaboration and coherence across the regulatory framework, supporting a more consistent and effective oversight along the supply chain.

At present, we do not have sufficient evidence to demonstrate that extending the GSCOP to out of home markets or intermediary suppliers is necessary. Implementing these changes would also require primary legislation and amendments to the GSCOP and its enforcement framework, which could risk undermining its current effectiveness. We will continue to monitor the market closely and welcome the sharing of evidence of unfair trading practices taking place in unregulated parts of the supply chain. We will remain responsive if emerging evidence indicates that changes to the GSCOP or GCA remit are warranted.

We agree with the review on the importance of continuing work to strengthen fairness across agri-food supply chains, including through ongoing Supply Chain Fairness reviews and consideration of fair dealing regulations across sectors, including sugar. This work is already underway through a programme of sector-by-sector reviews to assess where intervention may be needed. Where evidence demonstrates a clear case for action, we will bring forward fair dealing regulations to protect producers and promote transparency and fairness across the supply chain. Regulations are currently being developed for the eggs and fresh produce sectors. A consultation on combinable crops concluded in February, with a summary of responses to be published in due course. We engage regularly with stakeholders across all sectors and will continue to intervene where there is clear evidence that fair dealing regulations would improve fairness and transparency.

Market monitoring data

Access to clear, reliable market data is essential for farmers and growers to manage input costs, understand price movements and secure fair returns. The review highlights the role that transparent and consistent data can play in supporting better decision making, and a more resilient farming sector.

We publish a wide range of agricultural monitoring data on gov.uk which is publicly available for farmers and updated regularly through the year. This includes farm-gate prices on milk, eggs, animal feed and wholesale fruit and vegetable prices. Volumes of commodity production (milk, eggs, red meat, poultry and animal feed) are also published regularly, predominantly monthly. AHDB also publish price data on red meat, cereals, dairy commodities, fertilisers, hay and straw and animal feed. Additional monitoring data is made available in response to changing situations, for example we recently asked AHDB to increase the frequency of fertiliser price data reporting to weekly in response to the Middle East crisis.

The UK Agriculture Market Monitoring Group (UKAMMG) provides an established foundation for market monitoring in England and across the UK. Most data considered at UKAMMG is necessarily retrospective, providing a robust and consistent view of market trends over time. This analysis is also complemented by more live data provided by stakeholders, which is shared more widely where it is appropriate and possible to do so.

Whilst the review indicates that data published by UKAMMG is not readily and easily available to farmers and growers, it does recognise the valuable data that is collected and published by the group, which brings together information on farm gate prices, core input prices such as fertiliser and HMRC trade data. Where publication is permitted, this information is shared on UK Agriculture Market Monitoring Group (UKAMMG) following each monthly UKAMMG meeting, helping improve understanding of market trends across the supply chain.

The review recommends building on this existing capability to bring together a broader range of data at different points in the supply chain to create a more comprehensive picture of market performance. Further work is needed to explore whether government can obtain timely information on retail prices and prices through the supply chain, taking account of commercial sensitivities and data protections. Consideration is also needed on how data could be accessed and shared, including through appropriate platforms, and this work would require collaboration with the devolved governments where UK-wide data is involved.

A more coordinated process where farmers have up-to-date and real-time information is likely to be challenging in the short and medium term and commercial sensitivities will restrict data availability. Over the longer term, this is an area where industry innovation and collaboration may be well placed to play a leading role. To support this, we will ask the Farming and Food Partnership Board to consider this, including the recommendation to develop a national balanced scorecard.

Removing barriers and enabling infrastructure

Removing barriers to growth and ensuring that farmers have access to the right infrastructure is essential to supporting a productive, innovative and resilient farming sector. The government is committed to tackling the practical, regulatory and planning obstacles that currently constrain farm businesses, from access to utilities to the speed and consistency of planning decisions.

Planning

A planning system that supports the modernisation of food production is vital for farm profitability and delivering better environmental and animal welfare outcomes. We want a planning system that works for food production and the environment.

Effective coordination across the planning system is essential to supporting food production whilst delivering environmental and animal welfare outcomes. The review emphasises the importance of clear national direction in planning decisions critical to domestic food production, alongside consistent and timely decision-making to strengthen food resilience.

The government’s ongoing programme of planning reforms will support greater alignment and coordination across the system, whilst maintaining an important role for local decision making by:

• supporting Local Authorities to give quicker and clearer decisions on their planning applications

• introducing reforms to accelerate local plan preparation and ensure plans are underpinned by modern digital planning tools and services, which is part of our ambition to deliver universal plan coverage across England

• committing an additional £48 million to strengthen planning capacity across the public sector, supporting an ambition of around 1,400 new recruits across the planning system by the end of this Parliament

• developing a wider programme of support, working with partners across the planning sector, to ensure that local planning authorities have the skills and capacity they need

• making changes through the Planning and Infrastructure Act to ensure that planning committees play their proper role in scrutinising development without obstructing it, whilst maximising the use of experienced professional planners

The review highlights that the current system can sometimes be overly bureaucratic and costly to farmers, with overlapping regulatory requirements. It emphasises the importance of ensuring that food production and food infrastructure are properly recognised and considered in the planning system.

We support this and we are working to create a faster and more efficient planning system that will help to unlock development for farmers and landowners. This government has brought forward an ambitious package of planning reforms which will improve the planning system for all development types. This includes the proposed changes to the National Planning Policy Framework (NPPF), which would give substantial weight to development that benefits domestic food production, animal welfare and the environment.

Further to this work, and in response to the Review’s recommendations Defra and the Ministry of Housing, Communities and Local Government (MHCLG) are exploring how to improve the planning system for food and farming businesses, recognising the challenges faced by these types of investments. We are already working to improve the implementation of our environmental regulation that impacts planning decisions, including by clarifying guidance to Local Planning Authorities on assessing the environmental impacts of development. Over the coming months, we will work closely with industry, including through the Farming and Food Partnership Board and Sector Growth Plans, to develop the evidence and insight required to improve decision making in the planning system. This work will ensure that decision makers throughout the planning system have the necessary support to balance the environmental pressures inherent in agriculture with the need to drive investment and growth in the sector.

The review also makes a number of specific recommendations which we will consider as we take forward this work. The review recommends that the overlap between planning and permitting regulations are reviewed to remove duplication, particularly muck and slurry spreading requirements for ammonia.

We recognise that navigating the environmental assessments required for both planning applications and environmental permits is a key source of frustration for pig and poultry farmers who require permits. We continue to make improvements in both regimes to reduce burdens on businesses whilst maintaining our high environmental standards. On slurry spreading we are seeking to clarify this issue as a priority.

Land Use Framework

Planning reform in isolation cannot coordinate the multiple, overlapping demands on land across infrastructure, housing, food, nature and climate. The Land Use Framework (LUF) sets out a cross-government approach for a single, shared spatial picture of land use. It outlines several actions to provide planning authorities, developers and investors with evidence and broad direction regarding food and rural priorities. The LUF makes a long-term commitment to maintain overall food production in England. It commits to supporting decision-makers to effectively safeguard our best and most versatile farmland from permanent land use change (such as woodland creation and urban expansion) by publishing updated Agricultural Land Classification (ALC) data and mapping as it becomes available. We will complete a technical review of the ALC system by 2028 so that new data and methodologies are incorporated to better classify agricultural land. This will help to strengthen our assessment of, and decision-making on, the role of land in long-term food security and, along with other evidence on agricultural production potential, ensure food production continues to be considered in planning decisions.

Biodiversity Net Gain

The review also raises concerns that Biodiversity Net Gain (BNG) requirements have placed additional cost and burden on farming businesses, including those who are already delivering biodiversity benefits across their farms. To address this, it recommends introducing a Biodiversity Net Gain (BNG) exemption for agricultural development and protected cropping structures.

We agree that planning and environmental requirements must be proportionate while continuing to support nature recovery and should not create unnecessary barriers to essential agricultural development. Following consultation, in April 2026 we announced significant reforms to BNG to simplify the planning system whilst retaining our commitment to nature recovery. These changes will remove the BNG requirement from all development (including agricultural development) of less than 0.2 hectares. In addition, larger sites made up mainly of hardstanding or existing buildings, for example farmyards, where little or no habitat is impacted are also exempt.

We have also announced changes to make it easier, quicker and cheaper for small development to access the off-site market where BNG cannot be achieved onsite. Alongside implementing mandatory BNG for Nationally Significant Infrastructure Projects, these changes will help to grow the off-site BNG market. This represents an opportunity for farmers to diversify and access private funding for nature recovery through selling BNG units to developers.

Permitted Development Rights

Permitted Development Rights (PDRs) play an important role in enabling farmers to invest in new infrastructure more quickly and with greater certainty. The review highlights the value of planning flexibility in supporting modernisation on farm and makes a number of recommendations to extend the use of PDRs, including for livestock buildings beyond 1000m2, on‑farm reservoirs and small‑scale renewable energy.

We agree that farmers should be able to make the full use of the flexibility offered by PDRs to support agriculture productivity and resilience. Reservoirs reasonably necessary for agricultural purposes can already be developed under an existing PDR, and an extended PDR allowance for livestock buildings is government policy based on 2024 reforms. We recognise that navigating planning flexibilities can be challenging, therefore we intend to update the relevant Planning Practice Guidance in the coming months with additional guidance to make it easier for farmers to utilise them in practice.

We have also published a consultation on proposed changes to PDRs to support small-scale onshore wind deployment in England. To further support the deployment of small-scale renewable energy infrastructure, the consultation is seeking views on the introduction of a new PDR for small-scale, non-domestic wind turbines. The proposed PDR aims to support a range of non-domestic settings including farms to reduce their bills, become more energy independent and decarbonise their operations. The consultation closed on 10 June 2026 and we are currently considering responses. Further announcements will be made in due course.

Regulation

Effective regulation underpins productive, sustainable and profitable farming by protecting environmental and animal health outcomes. It also provides the quality and provenance assurances required for trade. It is therefore essential that we have the right mix of regulation to achieve these outcomes, ensuring that legislation is coherent, simple, effective and proportionate.

As recommended by the review, work is underway to systematically review and improve the current regulatory landscape of over 150 pieces of legislation that regulate farm practices. An initial prioritised approach is being taken, focusing first on areas in need of urgent reform. Agricultural water regulation is a key priority, and we have already published a white paper ‘A new vision for water’ on water reform. Other priority areas include changes to animal health and welfare rules to keep up with new evidence.

We have also asked experts at the Law Commission to advise where further simplification, modernisation and increased coherence of environmental legislation that impacts farm businesses can be achieved without lowering standards, to inform future priority areas for regulatory improvement activity.

Alongside legislative reform, we will also reduce the impact of existing regulations by reducing administrative burdens on farmers. Animal identification has been identified as a particular area of burden, and work is underway to modernise animal identification rules and systems for all livestock species. This will reduce paperwork, minimise transcription errors and limit the records farmers need to keep.

The review highlights the limits of rigid, calendar-based requirements of regulations and emphasises the importance of an outcomes-based approach that supports innovation and flexibility. We are developing new regulatory proposals that focus on achieving clear outcomes, such as reducing environmental harm, while providing farmers with certainty on what is required and ensuring regulation remains enforceable. Farmers and regulators will be consulted to determine the most effective approach on a case-by-case basis.

Making it easier for farmers to understand and comply with regulation is a core part of this approach, reflecting the Corry Review’s emphasis on clarity and accessibility. Online guidance across a number of farming regulations is being updated with a view to making requirements clearer and easier to navigate.

Inspection approaches are also being strengthened. There will be improved targeting, supported by better data sharing and the use of technologies such as earth observation, to reduce unnecessary visits and ensure attention is focused where it is most needed. This will benefit farmers who follow good practice whilst helping to maintain environmental standards.

Regulators play a critical role in supporting productive and sustainable farm businesses, and services need to be joined up, proportionate and easy to navigate. The review highlights the need to streamline regulatory processes linked to grants, permits and approvals, remove duplication, and ensure compliance costs and proportionality are given greater weight through the Regulators’ Code.

Defra Group farm regulators are actively delivering a programme of continuous improvement to achieve more consistent, fair and proportionate regulation. This includes strengthening advice-led approaches, sharing best practice across regulators, and taking greater account of the cumulative impacts of regulation on farm businesses.

In areas where compliance has been particularly challenging, including Nitrate Vulnerable Zones and the Farming Rules for Water, reform is already under way. Increased funding for the Environment Agency has enabled more targeted regulation and a stronger, advice-led approach to working with farms. This has delivered positive environmental outcomes. In the most recent year, more than 6,500 improvement actions were issued to farmers, with around 6,000 verified as complete, delivering clear environmental benefits.

On an ongoing basis we will consider the combined impact of new policies to reduce the risk that regulatory requirements, when taken together, unfairly or disproportionately affect specific types of farm business.

Plant protection products

As part of regulatory reform, the review highlights the need for plant protection products regulation to follow a more risk-based, rather than hazards-based, approach.

Plant protection products remain subject to rigorous regulation and are only approved where there is clear evidence that their use will not harm human or animal health or pose unacceptable risks to the environment. Maintaining these high standards is essential to public confidence and to safeguard the natural assets that farming depends on.

Future regulation will be shaped by the proposed UK-EU SPS agreement. Whilst details of the agreement are subject to negotiation, the aim is to make agri-food trade with the UK’s biggest market easier, cutting costs and red tape for British producers and retailers.

The review also suggests that a more fit for purpose pathway should be created for biological crop protection products. We recognise the role low risk biopesticides can play as part of an integrated pest management approach and are supporting their increased uptake. The UK Pesticides National Action Plan includes action to improve arrangements for GB biopesticides, reducing regulatory burdens without compromising environmental and human health standards.

Delivery is already underway. The Health and Safety Executive (HSE) operate a dedicated biopesticides scheme to support applicants seeking approval. It offers tailored regulatory support, including biopesticide champions, free pre-submission advice and capped fees for active substance approvals. Further improvements, such as parallel assessment of active substances and products, and reduced initial data requirements for likely low-risk substances, are helping biopesticides reach the market more quickly while maintaining robust safety standards.

Small abattoirs

The review also recommends that work should be undertaken to minimise the bureaucracy and cost of official controls on small abattoirs. Small abattoirs play a valuable role in local supply chains and rural economies. We are committed to supporting their long‑term sustainability while maintaining the high food safety and animal welfare standards on which consumer confidence and international trade depend.

A partnership-based approach is already delivering practical improvements. The Small Abattoirs Task and Finish Group brings together industry, regulators and delivery bodies to identify barriers and implement proportionate solutions. This has led to tangible changes in Food Standards Agency (FSA) working practices including reduced administrative requirements (for example exceptions to reporting in daily diaries for smaller abattoirs) and more streamlined inspection processes.

The FSA is also working closely with the industry on the proposed changes to their Official Control Meat Charging discount system. For many years the smallest abattoirs have received discounts of up to 90% on regulatory costs and the FSA is committed to maintaining this level of support. On 19 March 2026, a 12-week public consultation was launched on proposals which would continue this discount for all the smallest abattoirs in England, Wales and Northern Ireland while better targeting taxpayer-funded support, minimising barriers to business growth and improving value for money. Under the proposals, nearly a third of abattoirs could receive a 90% discount, which would represent a 50% increase on the number receiving maximum support under the current system.

Alongside this, we are reviewing the potential merits of adopting the livestock unit regulatory flexibility (5% Rule) for smaller abattoirs. Implementation of this flexibility could reduce the requirement for Official Veterinarian attendance and allow delayed post-mortem inspections, benefiting smaller abattoirs in particular. Implementation of the 5% Rule will depend on the completion of the UK-EU SPS agreement, which will result in realignment with the EU and thereby enable the UK to apply the flexibility.

Energy and connectivity

Reliable digital connectivity and access to energy infrastructure is essential for farm productivity, innovation and long-term profitability. The review highlights the challenges of poor grid connectivity in some rural areas and recommends the need for better coordination across government and regulators to improve internet access, mobile connectivity and grid capacity.

We agree that improving digital connectivity and access to energy is important and are key themes which emerged from the Defra-led Rural Taskforce. We know that digital connectivity in rural areas lags behind urban areas and will continue to work on this, including for farming, food and rural businesses as we take the taskforce forward.

We also recognise the challenges faced by farming businesses when connecting to the grid, particularly for energy intensive operations. Defra will work through these issues with the Farming and Food Partnership Board alongside the wider work on planning, including by working with the Department for Energy Security and Net Zero (DESNZ) and the National Energy System Operator (NESO) to ensure data and information related to the specific energy needs for the sector are appropriately considered as part of the Regional Energy System Planning work that NESO is undertaking.

Water management

Effective water management is increasingly important as the climate changes. By managing water well, farms can safeguard productivity, build resilience and support long‑term profitability. The review emphasises that the implementation of the Cunliffe’s Review recommendations on regulator reform and regional planning should be considerate of farming businesses, including by reducing regulatory fragmentation. It also recommends embedding local partners in the delivery of the recommendations, to build relationships at a local and regional level.

We recognise the importance of reducing regulatory fragmentation and have been working with agricultural stakeholders to develop proposals for reform. We have committed to implementing an enhanced, better joined up regional water planning function. This will enable a more holistic, coordinated approach to water environment and supply planning

which supports delivery of national strategic objectives. Food and farming groups will be involved in the early rollout of regional planning, and we are already actively engaging with farming representatives in this process.

The review also underlines the importance of local collaboration in delivering effective water management. As committed in our water white paper, we have doubled the funding for catchment partnerships to bolster their capacity and capability to convene cross-sector partners, harness local insight and implement solutions at the catchment scale, to feed into regional planning. Catchment partnerships are well-established and showcase how the bottom-up approach can be effective in coordinating local collaboration, including with farmers and land managers, and delivering projects with multiple benefits across water quality, quantity and flooding. It is therefore important we continue to support these groups as we introduce the enhanced regional water planning function.

The review recommends an evidence led, partnership approach with the farming industry in regions where water abstraction for food production is needed to support sustainable access to water while maintaining farm productivity. We agree and this approach is being taken forward through the work to continue to encourage the establishment and strengthening of Water Abstractor Groups (WAGs). These groups bring together abstractors within a catchment to share information, coordinate abstraction and support collaborative water resources planning. In some areas, they are also building longer-term resilience through shared infrastructure or coordinated water management approaches.

The government has set a target in the Environmental Improvement Plan, published in December 2025, to double the number of Water Abstractor Groups from 7 to 14 by 2030. This target has already been met.

Tax incentives and grant schemes

Tax incentives, investment and grant funding play an important role in supporting farming businesses as they adapt, invest and plan for the long term. Used well, these levers help strengthen business fundamentals, manage periods of change and can support the transition to more productive, resilient and sustainable farming systems.

Grant schemes

Environmental Land Management (ELM) schemes support this transition by encouraging investment in land management practices that sustain food production, improve environmental outcomes and build business resilience. The government reconfirmed its commitment to the ELM schemes and the enduring role they will play in funding public goods in the Farming Roadmap, published alongside this response.

The review highlights that improving profitability depends on coherent policy design and effective delivery across schemes that farmers can readily access and use. It emphasises the importance of support that enables businesses to invest with confidence, adapt to changing conditions and plan for the future. In response, we are reforming and simplifying our grant offer, so it better supports farm businesses across different sectors, tenures and landscapes during periods of transition.

We recognise the review’s assessment that the current operation of grant schemes can present challenges for farmers, noting that they are often fragmented, complex and that farmers can have difficulty accessing them due to up-front costs, heavy administrative burdens and short application windows. The review recommends that the current model of grant delivery is reviewed to reduce the risk burden on farmers and streamline the approval process.

We accept this recommendation. Improving the design and delivery of grant schemes is essential to ensuring that public funding effectively supports productive investment and business resilience. The government is committed to introducing a new grants delivery service, which will help drive a fundamental transformation in grant delivery and in how farmers engage with government. This will deliver a shift from a fragmented, manual model to a more integrated service that maximises automation and makes better use of live, trusted data. The ambition is to simplify eligibility and assurance processes, reduce risk and administrative burden, and enable farmers to navigate and access funding in a way that reflects their individual needs.

Sustainable Farming Incentive

The overall ambition of the Sustainable Farming Incentive (SFI) is to support farmers to manage their land in ways that deliver environmental benefits as they produce food. The review underlines the importance of a simpler SFI offer that can be accessed by a wider range of farmers including those who were unable to enter previous schemes.

In response to the review’s recommendations, a new Sustainable Farming Incentive offer for 2026 (SFI26) was announced at the NFU conference in February. SFI26 has been designed to be simpler, fairer and more accessible than the previous offer and we have committed to stabilising the SFI offer for the remainder of this parliament, so that businesses are able to plan without concerns that schemes will radically change year on year.

SFI26 is simpler, with 71 actions rather than the previous 102. Actions that were duplicative or delivered limited benefit for food production or the environment have been removed. Actions with a 5-year duration will turn into 3-year actions in SFI26 to further simplify the scheme and make it more accessible for short-term, tenant farmers. This consistency makes the scheme easier to navigate.

SFI26 is fairer, with the introduction of a £100,000 agreement value cap per farm to prevent a small number of very large farms receiving a disproportionate share of the funding. A small number of payment rates have also been rebalanced. This includes increasing the payment rates of five upland and moorland actions, recognising the specific challenges faced by upland farmers and the important environmental outcomes these landscapes can deliver. We have also reduced the payment rates of 3 actions which were initially set at a rate that made it too attractive to take highly productive land out of food production. In line with the review’s recommendation that funding from the farming budget should only go to active farmers, we have also introduced a minimum area of 3 hectares as an eligibility requirement to prevent non-commercial owners from entering the scheme and to ensure greater contributions to our statutory environmental targets. Together with the requirement for applicants to have management control of the land, this directs SFI funding to active farmers.

SFI26 is more accessible, particularly for smaller farms and those who previously chose not to access the scheme. The first application window, opening later in June, will be available exclusively without an existing ELM revenue agreement. This will be followed by a second window in September, which will be open to all farms over 3 hectares.

Due to technical constraints, commons groups cannot apply for an SFI26 agreement. The Rural Payments Agency (RPA) is working on a solution to this issue so that commons groups can apply in future. The inability to apply for common land will not affect individuals’ ability to apply with respect to their own (owned or tenanted) land.

The review recommends that SFI should include an action for soil baselining. We removed the action related to producing a soil management plan from the SFI26 offer because it does not deliver direct environmental benefits and therefore delivers poor value for money. We will consider the case for introducing soil baselining in future offers of the Environmental Land Management schemes.

The review also recommended including growing protein crops including peas, beans, pulses and oilseeds in the SFI26 offer. We have designed ELM schemes to be World Trade Organisation (WTO) ‘Green Box’ compliant, which means they are designed as public payments for environmental outcomes (public goods) and are expected to cause little to no trade distortion. As such, we do not subsidise the production of specific crops through our schemes, but we will explore the potential to expand the low-input actions that are available for cereals (as these actions contribute to our environmental targets) to protein crops in future SFI offers.

Countryside Stewardship Higher Tier

Countryside Stewardship Higher Tier (CSHT) is designed to support high‑ambition land management (woodland management, species recovery, natural flood management, peat restoration and more) where farmers rely on tailored advice, working closely with advisers from Forestry Commission and Natural England to ensure these agreements deliver the best results for the environment. We opened the scheme for applications in September 2025 and are starting to see agreements coming through the service. As called for in the review, we are committed to increasing CSHT agreements over the coming year and will announce more information on the next cohorts to be invited in due course.

Capital Grants

ELM Capital Grants support investments such as hedgerow creation or restoration and actions to address on farm water or air pollution, with the next round opening in July 2026. Other funding for capital items, including to manage woodland and complete plans to help support applications for CSHT and to address tree health, are currently available all year round.

Landscape Recovery

Landscape Recovery (LR) funds large-scale, collaborative, long-term projects to deliver ambitious environmental outcomes through bespoke 20 year+ agreements. The review advocates for the scheme and calls for it to be more widely available so more farmers can benefit.

Through the 2 pilot rounds of the LR scheme, we have supported 56 projects into their development phases and have good coverage across the country. LR projects that were awarded funding in rounds one and 2 are continuing, and we are moving into the delivery phase with the first round of projects.

We have several farmer-led projects showcasing how the ambitious, collaborative nature of LR is cutting across all demographics. Nearly all the projects involve groups of land managers and farmers, including tenants, working together to deliver a range of environmental benefits across farmed and rural landscapes. A significant number of LR projects involve tenants (around 50% of projects in round 1, and 85% in round 2). As such, supporting the tenants in these projects is a key objective of the scheme.

Plans for a third round of LR will be confirmed in due course. The next round of LR will aim to improve on the applicant experience, whilst also maximising the use of public money in delivering long-term environmental benefits.

Farming in Protected Landscapes

The Farming in Protected Landscapes (FiPL) programme was launched in 2021 as targeted action to help address the specific pressures and challenges faced by National Parks and National Landscapes. The review recognises that FiPL has been well received by farmers and has played a vital role in supporting profitability. We welcome this assessment and note the confidence FiPL has built through locally delivered support.

Stakeholders have highlighted that FiPL plays an important role in helping farms in protected landscapes strengthen their long-term resilience. The scheme supports investment in actions that deliver both business and environmental benefits including:

• reducing input costs through improved soil health, nutrient management and regenerative practices

• diversifying income streams, for example through nature-based tourism, habitat creation or new environmental services

• improving productivity and efficiency, such as through better livestock management, water efficiency or infrastructure that supports sustainable grazing

• enhancing natural capital, which strengthens the long-term economic value of the land and supports future earning potential

By funding projects that deliver both environmental and business benefits, FiPL helps farmers in protected landscapes remain economically viable while contributing to wider environmental goals.

The review recommends changes to how FiPL is administered, including a shift toward farmer-led delivery and expansion beyond protected landscapes. We recognise the intent behind this recommendation and welcome the review’s emphasis on strengthening farmer leadership and local collaboration. However, FiPL funding has only recently been renewed, and delivery arrangements for the next phase of the scheme are already in place. As a result, making significant changes to the delivery model is not feasible at this stage. We will continue to explore opportunities to build on principles of strengthening farmer leadership and local collaboration within the existing framework.

We remain committed to ensuring FiPL continues to support profitable, resilient farm businesses. Delivery arrangements will be kept under review and we will consider the review’s recommendations as part of future policy development, while ensuring continuity and stability for farmers already engaged in the programme.

Productivity funding

Investing in technology and new equipment, improving practices, and changing the way businesses are run can boost productivity, resilience and profitability. Targeted government funding alongside private sector investment can play a key role in supporting the transition to more productive, sustainable and resilient farm businesses. The review recommends that future productivity funding should be accessible to more farmers and growers, with funding levels scaled to business size, and available across the whole sector.

We opened a £50 million Farming Equipment and Technology Fund (FETF) in February 2026 to support farmers to invest in new equipment and technology that boosts productivity, cuts emissions and supports more efficient farming systems. Farmers, horticulturalists and foresters (including related contractors) are eligible for these grants, across all farming sectors, maintaining the inclusive approach taken in previous rounds. This scheme is now closed to new applications, and we do not currently plan to offer another standalone FETF scheme.

We are currently looking at our smaller grants offer and reviewing whether some innovative equipment items currently funded through the Farming Equipment and Technology Fund could continue to receive grant support within ELM Capital grants from 2027 onwards. This would build on what has worked well across all our grant schemes by bringing the strongest elements together. As part of this work, we will look at the specific types of equipment and technology that help improve the environment, productivity, animal health and welfare, and slurry management, with the aim of making our overall offer simpler and more coherent while driving investment to farmers and growers across the sector who face genuine barriers to investing in increasing their productivity.

Tax and capital allowances

The review recommends that the government consider whether existing capital allowances and investment tax reliefs adequately support farm businesses.

The government has taken significant steps to increase the generosity of relief for investment, to ensure that the UK remains one of the best places to grow a business.

Following the introduction of Full Expensing for plant and machinery, the UK has one of the most generous and competitive capital allowances regimes in the world and is top of the rankings of OECD countries. For example, the Annual Investment Allowance allows both incorporated and unincorporated businesses to deduct the entire cost of investment in both main and special rate assets in one go, up to £1 million per year, covering the investment of 99% of businesses.

Building on this, at Budget 2025, the government introduced a new 40% first-year allowance – including for investment in leased assets and for investment by unincorporated businesses.

In line with the 2024 Corporate Tax Roadmap, the government is maintaining the key features that make the UK attractive for investment: a competitive 25% Corporation Tax rate, full expensing for plant and machinery, and a flexible regime for intangible assets.

The review recommends that the government should develop an offer of 0% interest soft loans through the British Business Bank, to unlock a wider range of investment in the industry.

The British Business Bank supports access to finance for farmers (and smaller businesses more generally) by addressing both risk appetite and funding constraints that can limit agricultural lending. The Bank already works with specialist lenders such as Oxbury Bank and Rural Asset Finance to channel support more effectively to farming businesses, further strengthening access to tailored lending solutions in the sector. The Bank’s interventions help unlock lending that would not otherwise occur, support a broader range of financing products, and improve competition in the small business finance market. Through programmes such as the Growth Guarantee Scheme, the Bank shares risk with lenders, enabling viable but underserved businesses to access term loans, asset finance and other debt products that might otherwise be unavailable.

Support for the tenant farming sector

The government recognises the importance of taking additional steps to support a profitable and thriving tenant farming sector.

The review makes several recommendations to support the tenant farming sector to invest in and grow their businesses. These include considering updating end of tenancy valuations to include environmental value as part of the Law Commission’s review of tenancy legislation, reviewing income tax relief for landlords and stamp duty land tax (SDLT) for tenants, and considering if the Commissioner for the Tenant Farming Sector should be given statutory powers.

The government recognises the benefits of longer agricultural leases and the importance of security of tenure for tenant farmers. Landlords and tenants may agree tenancy terms of any length to reflect their particular circumstances but new industry led guidance published in March 2026 will help more landlords and tenants consider how long-term agreements could benefit them.

A significant tenanted sector already exists in most parts of the UK, with around a third of all agricultural land tenanted in England. The average length of Farm Business Tenancies (FBTs) in commercial farm businesses in England was also 5 years and 7 months in 2024 to 25 according to Defra data.

We welcome the Law Commission’s decision to review agricultural tenancies within its 14th Programme. This will be a detailed review that will assess whether current legislation appropriately balances the interests of landowners and tenants and whether it enables tenants to diversify and adopt more sustainable farming practices. The Commission’s project is expected to commence in summer 2027. We will work with the Commission to finalise the detailed terms of reference for the project before it commences.

The government has noted the income tax relief available to landlords for agricultural leases in Ireland, which was introduced to effectively create a tenanted sector from a system of very short term conacre leases and then stimulate the letting of land for at least 5 years. Implementing similar changes to the income tax system in the UK is unlikely to have the same scale of impact. The government will keep changes to the income tax system under review in the usual way, in light of any further data and evidence relating to long-term agricultural leases.

SDLT liability on agricultural tenancies does not depend on the length of the lease alone, but on whether the value of the transaction exceeds the relevant SDLT thresholds. The government believes there is insufficient evidence that SDLT is the main deterrent to longer-term agricultural tenancies. However, we will keep this suggestion under review.

The Commissioner for the Tenant Farming Sector was appointed in September 2025. As this is a new role, we will conduct a comprehensive review in 2 years to evaluate the effectiveness of the non-statutory approach and its value for money. Together with the Law Commission’s findings, this evaluation will shape future legislative reforms to ensure a modern, robust system that supports the long-term viability and ambitions of tenant farmers.

Developing people and skills

A skilled and resilient farming workforce is essential for a productive and sustainable food system. Farmers and farm managers are best placed to understand what their businesses need. Government’s role is to support the sector by helping to ensure that the right training, skills and labour are available so farms can improve productivity and remain profitable over the long term.

We will continue to work closely with the farming sector and across government to strengthen skills development, improve access to advice and expertise, and create clearer routes into farming for people new to the sector. This will help farm businesses respond to change and run more efficient, successful operations.

Skills, collaboration and sharing knowledge

The review highlights the need for stronger training routes, better collaboration between farmers, and a workforce that can adapt to change. It points to the importance of practical skills such as digital capability, business and financial management, and succession planning for family farms, all of which support better decision-making and productivity.

We agree that access to the right advice, training and research is critical for improving farm profitability. We also recognise that existing training and support do not always meet the changing needs of today’s food and farming workforce. Addressing skills gaps will help farm businesses adapt, make better use of new technology, and adopt modern business practices.

There are challenges both in what training is available and how easily people can access it. We will develop a clear skills strategy, working with industry experts, to make sure training meets the needs of both existing farmers and people entering the sector. This will cover the wide range of skills farmers need and help raise professional standards. We will also work with the sector to encourage investment in skills, including new approaches such as robotics, data and artificial intelligence, where these can help improve productivity and profitability.

Farmer Collaboration Fund

Collaboration between farmers plays an important role in improving productivity and farm incomes. Learning from peers, working together and sharing knowledge can help break down barriers and ensure support reflects farmers’ real needs. We agree with the review that more can be done to encourage local partnerships and collaboration.

In response, the Defra Secretary of State announced in January 2026 up to £30 million over 3 years for a new Farmer Collaboration Fund, which we intend to launch later in 2026. This represents a significant increase on the current £2 million annual Countryside Stewardship Facilitation Fund. The new fund will support collaboration, knowledge sharing and networking, helping farmers work together to grow their businesses and deliver environmental benefits.

Farmers have told us that environmental advice does not always reflect business realities. The new fund will therefore support a whole-farm approach, bringing together business, productivity and environmental goals in a simpler, more flexible way.

We also recognise the administrative burden created by some previous grant schemes. Under the new approach, we will fund organisations to act as delivery partners, helping to coordinate collaboration groups. This will allow farmers and facilitators to focus on learning and improving farm practices, rather than paperwork. The fund will be open to a wide range of organisations and will support those with the strongest ideas for innovative collaboration and peer learning.

Defra is already engaging with farmers, delivery partners and the wider sector, including Environmental Farmers’ Groups and local authorities, as part of developing the fund.

Research, advice and training

The review also stresses the importance of improving access to agri-tech research, advice and support. We will consider its findings alongside existing and planned support for technology adoption in England, to make sure it is practical, accessible and effective. A skilled workforce is essential to making the most of new technology, strengthening business decisions, and helping farmers respond to economic, environmental and regulatory change.

While the review suggests bringing research, advice and training into a single structure, we believe a flexible approach is better suited to a diverse sector with varied needs. To support this, we have established a dedicated skills policy team to work with industry and across government on a joined-up, long-term approach to attracting, training and developing people in agriculture. The team will assess current skills provisions, plan for future farm needs, and collaborate with the sector to create a robust learning system. In this, we will consider ways to build and meet learner demand, for all on-farm professions.

Education and career pathways

The review recommends that government and industry use the Food Strategy to strengthen education and career pathways in food and farming. This includes identifying skills and learning gaps across secondary and higher education, integrating agriculture into STEM subjects, and improving school-based education on healthy diets, nutrition, and cooking from scratch.

Improving public health, diet and nutrition is a key aim of the Good Food Cycle and the 10 Year Health Plan. Backing British food and farming, including through strengthening our connection with the food system and building a British food culture, is a core Defra priority. Ensuring we have the right skills and workforce in the agri-food sector underpins government’s priority for good growth, contributing to wider economic growth.

We have considered the review’s recommendation on strengthening skills and labour across the Good Food Cycle priorities, and we are committed to working closely with the Department for Education to deliver this ambition. To date, progress includes the Government’s response to the independent Curriculum and Assessment Review, published on 5 November 2025, which set out commitments to:

• enhance the identity of food education by establishing it as a distinct strand within design and technology

• carry out a review of the level 3 vocational study options for food science to determine whether the suite of qualifications available at this level adequately supports a strong pipeline into higher education and careers

The national curriculum framework provides teachers with freedom and flexibility to decide how best to cover curriculum subjects so topics such as farming and sustainability can be taught across subjects, including science and geography. Cooking and Nutrition naturally connects with science (nutrition, digestion, food composition, energy), maths (measurements, ratios, timing) and geography (food origins and sustainability). This creates opportunities for cross-curricular links. For example, plant growth in science, as well as environmental sustainability throughout the national curriculum in several subjects.

Cooking and Nutrition is statutory at key stages 1 to 3, teaching all pupils essential life skills in food preparation, nutrition and healthy eating. The curriculum introduces pupils to where food comes from, seasonality, and basic food production concepts, laying groundwork for later interest in food, farming and agri-food careers.

The curriculum aims to teach children how to cook, with an emphasis on savoury dishes, and how to apply the principles of healthy eating and nutrition. It recognises that cooking is an important life skill that will help children to feed themselves and others healthy and affordable food. The curriculum balances practical competence (planning, preparing and cooking dishes) with nutrition knowledge, helping to address gaps in basic food skills and dietary literacy. At secondary level, it supports progression to GCSE Food Preparation and Nutrition, where pupils apply food science and nutrition principles in practical cooking.

Labour supply

The review highlights the importance of having appropriate labour supply for the poultry and horticulture sectors, including seasonal labour. It recommends that the Seasonal Worker Visa Scheme is extended to nine months to cover the whole season and that Government implements the recommendations from John Shropshire’s independent review into labour shortages in the food supply chain, including investment in automated crop harvesting technologies.

The John Shropshire review was published in June 2023, with a response from the previous government published in May 2024. The wide-ranging review made 10 main recommendations relating to recruitment and retention issues across the food supply chain. These included how to boost domestic recruitment for example through improving sector attractiveness, providing better skills, training and education pathways, as well as ways to boost productivity through innovating and adopting automation. It also highlighted the on-going importance of migrant workers and their welfare to the food supply chain to avoid workforce and skills shortages in both skilled and seasonal occupations.

Since publication of the review, certain recommendations have been implemented either in full or in part. For example, the seasonal worker visa route has been extended for a further 5 years from 2025 until 2030 and the cooling off period (the amount of time a worker must be outside of the UK before returning on the scheme) has been reduced from 6 to 4 months. The government also continues its significant investment in automated technologies for example through the Farming Innovation Fund.

The government is also transforming support for apprenticeships into a new growth and skills levy, which will deliver greater flexibility to employers and learners and boost opportunities for young people. This is part of an ongoing review, with Skills England, of the current apprenticeship standards to ensure investment is focussed where need is greatest, and de-funding standards which do not support economic growth or form an essential part of key apprenticeship career pathways.

There is limited evidence to show that an extension to the Seasonal Worker Visa, to cover the whole season, is needed. The work is ultimately still seasonal with the greatest number of workers required for harvesting through from late spring and summer to early autumn. There is not enough work to justify an extension to the visa. The current 6-month visa provides workers for this high season period. Whilst some growers might require a proportion of workers for longer than 6 months, most workers are not needed for this long.

In addition, there are risks associated with such an extension. Visas longer than 6 months would require payment of the Immigration Health Surcharge (£1,035). There are also risks of raising workers’ expectations of their earning potential in source countries, as some may assume that they would receive 9 months’ work and so take on additional debt, but the reality is that most workers would only work for 5 to 6 months.

Research, innovation and technical support

We recognise that technological and scientific advances are key to driving greater agricultural productivity and profitability. We want farmers to have access to the high-quality technical advice and the support they need to adopt new tools, techniques and practices. We also want research and innovation to be closely aligned with the real-world business needs of farms, ensuring that new developments translate into practical improvements on the ground.

Streamlining technical support to farmers

Access to clear, trusted and joined-up technical advice is essential to helping farmers adopt innovation, build skills and improve productivity. The review highlights the need for a more coherent system covering research, advice, skills and innovation, and recommends working with industry to simplify how farmers access support, including consideration of a single online entry point for advice.

We recognise that the current landscape of services for research translation, advice and skills is dispersed and agree with the intent of improving coordination and accessibility. However, proposals to develop a new service or portal need to be carefully tested in view of potential costs and value added on top of existing services.

The UK already benefits from leading agricultural research and innovation centres working directly with farmers in the field. This has enabled rapid advances in areas such as precision breeding, where new technologies and practices offer win-wins for increasing productivity, sustainability and resilience. Despite this, significant barriers remain to adopting new practices, including awareness, confidence in adopting new technology, and the ability to secure returns on investment.

This is why we are focussing more Defra support on farmer-led development and adoption of new technologies through the ADOPT scheme with £30m available in 2026 to 2027. We are also collaborating with industry on improving knowledge exchange, developing skills offers for farmers, and better coordination across demonstration farms and networks.

Through the Farmer Collaboration Fund, we will help farmers get the technical advice they need to improve productivity as well as working towards environmental outcomes. We will support advice that is provided directly to individual farmers where this is needed, as well as advice delivered to groups, and knowledge exchange and learning across different farm businesses.

Going further, we are exploring how best to simplify the offer for farmers and agri-tech businesses to drive productivity through better coordination and alignment. We will build on the support already provided such as the ADOPT scheme, industry-led offers, farmer networks, and Defra arms-length bodies and take account of the emerging needs identified by new Sector Growth Plans. This will be developed in partnership with the sector, and we are already engaging with the Agricultural Productivity Group, including the sector organisations leading on agri-tech, skills and advice on opportunities for better co-ordination of farmer-facing services.

Research and innovation

The review calls for Defra to work with major research funders and stakeholders to set clear priorities and create coordinated pipelines for commercial farming research. This includes developing joint research programmes with the Biotechnology and Biological Sciences Research Council (BBSRC) and Innovate UK, starting with a programme on fertilisers made from nutrients recovered from farm waste and sewage (SOILSHOT), securing private sector investment and strengthening how Defra and industry agree priority areas for commercial research.

We agree with the intent of these recommendations and are progressing a programme of work that supports their delivery. The agri-tech sector has been recognised as a frontier growth sector through the Modern Industrial Strategy’s Advanced Manufacturing Plan and we have committed to invest at least £200m by 2030 in the Farming Innovation Programme (FIP), which is delivered in partnership with Innovate UK. This investment supports a pipeline of new ideas through development, testing and commercialisation. FIP industry-led competitions invite the sector to put forward proposals which address real world farming challenges and crowd in significant private sector investment.

Within the Farming Innovation Programme, funding levels are scaled by business size, with smaller businesses able to receive up to 70% of project costs, compared to 50% for large organisations, ensuring greater accessibility for farmers and SMEs.

In our latest round of Investor Partnerships, total grant funding of £8m is expected to secure around £40m of private investment, subject to final checks. FIP policy-themed competitions have been used to stimulate research on the most pressing issues for farming productivity, sustainability and resilience with recent competitions on climate-smart farming, precision breeding, automation and robotics, and nutrient management. In response to the review, we will focus a funding round in 2026 to 2027 on soils and water. We will engage with industry to shape the offer, so it meets sector needs and supports the development of technologies and practices that improve soil quality, enhance water management and boost farm profitability whilst putting less pressure on the critical natural resources of soil and water.

Defra is investing in a coordinated programme of fundamental and applied research and development, working in partnership with academia, industry and farmers. This investment of over £238 million from 2026 to 2027 to 2029 to 2030 spans early-stage science through to on-farm trials, deployment and adoption. For further details of current projects see the Research and Development section of the Farming Roadmap.

Beyond Defra-funded research to inform policy development, we work closely with major research funders, including UKRI, to coordinate agri-food research and leverage investment around shared priorities such as food system resilience, land use, diet and health. Defra is represented on 3 UKRI programme boards, covering agri-tech, engineering biology and food, animal and plant health. This helps Defra to shape priorities for research and development in these areas.

We also work with external organisations to understand and shape wider investment in farming research. For example, the State of Agricultural Research and Innovation (SARI) initiative which is assessing the current state of innovation funding to help shape future prioritisation.

Valuing nature and environmental outcomes

We are working to ensure that nature and environmental outcomes are properly recognised and valued as an integral part of a profitable, productive and resilient farming sector. Private finance markets can enable farmers to receive payments for environmental delivery alongside food production. Our priority is to create the conditions for these markets to function effectively by building confidence, consistency and integrity to enable supply chains and investors to pay for measurable environmental outcomes delivered on farms. This approach supports farm profitability through diversifying income, and strengthening long-term soil health, productivity and resilience across the farmed landscape.

Private finance

The review identifies an opportunity to create a private finance stream that rewards sustainable farming while keeping land in productive food use. While private investment already supports some environmental outcomes on land, the review highlights the potential to unlock capital for environmental delivery on actively farmed land, alongside food production. It points to a standardised baselining, common metrics, and robust monitoring, reporting and verification, while strengthening expectations on supply chains to pay for environmental outcomes. As an initial delivery step, the review proposes establishing a taskforce (SOILSHOT+NATURE) to work with industry to develop shared metrics for measuring environmental outcomes, testing approaches, and building market confidence.

In line with the recommendations of the review, we will establish a task and finish group to explore how to drive private sector investment into sustainable farming.

We are already actively supporting the growth of private nature markets that enable farmers to attract additional income streams. For example, farmers can already sell units to the off-site Biodiversity Net Gain market, and the size of this market will increase when Nationally Significant Infrastructure Projects (NSIPs) are required to also deliver Biodiversity Net Gain (from November 2026).

Reformed water regulations will also increase the demand from water companies for nature-based and preventative solutions that farmers are well-placed to provide, such as tree planting along riverbanks or wetlands, and swales to store rainwater. Farmers will also be able to bid to deliver conservation measures under the Nature Restoration Fund, and for tree planting through the Woodland Carbon Purchase Fund.

Last year, we ran a call for evidence on expanding the role of the private sector in nature recovery. Responses stressed that for regenerative farming to be viable at scale, costs must be shared more fairly across supply chains, with strong calls for food and drink companies to better recognise and reward nature-positive and low-carbon practices. We also heard that farmers need more robust and readily accessible data to help forecast and monitor environmental outcomes and may benefit from support to access technical advice and improve market access and negotiating power, for example through farmer cooperatives. Suggestions were also made to help farmers meet upfront costs and to develop markets for both nature-friendly food and environmental outcomes, for example through concessional loans.

To build confidence in UK nature markets that can generate additional revenue streams for farmers, we need to manage the risk of greenwashing and ensure that investments deliver genuine environmental benefits. We have funded the British Standards Institution (BSI) to produce a set of voluntary Nature Investment Standards, supported also by the devolved governments, which aim to ensure that markets operate with transparency and fairness.

We have also commissioned research into industry best practice exploring how supply chain action to reduce emissions can be scaled, with a focus on agriculture. Stakeholder feedback shows that there is strong appetite for standardisation of high-quality insetting approaches, such as on accounting and monitoring, reporting and verification.

We welcome the review’s recommendation to develop a consistent set of standardised metrics for insetting, and will set out next steps as part of our response to the Voluntary Carbon and Nature Markets consultation later this year.

The review also argues that on-farm investment by the private sector would be encouraged if the government were to mandate nature reporting for corporate businesses in the UK through the taskforce on Nature-related Financial Disclosures (TNFD). We continue to be a strong supporter of the TNFD. Defra funds the Green Finance Institute to support UK companies to engage with the TNFD’s recommendations, and the UK now has the second highest number of TNFD adopters globally.

We have also been a strong supporter of the International Sustainability Standards Board (ISSB) since it launched with the goal of creating a global baseline for sustainability reporting standards, to ensure international consistency on corporate sustainability reporting.

We have established a process for assessing and endorsing the ISSB’s standards for the UK context and recently published the UK versions of the ISSB’s first 2 standards:

• UK Sustainability Reporting Standard S1 (General Requirements for Disclosure of Sustainability-related Financial Information)
• UK Sustainability Reporting Standard S2 (Climate-related Disclosures)

The Financial Conduct Authority have consulted on updating their rules on sustainability reporting for listed companies to align with the UK Sustainability Reporting Standards. ISSB is now progressing work on standard-setting for nature, drawing on the work of the TNFD, and aims to publish a draft later this year. Defra, DBT and the Financial Reporting Council are following the ISSB’s work on standard-setting for nature and stand ready to use the established process to assess and endorse it when it is finalised.

Value of farming and natural capital

The review highlights the need for a fuller and more accurate picture of the economic value of farming and nature, so that both agriculture and natural capital are properly reflected in how the UK measures and assesses economic performance. The review recommends that the Office for National Statistics (ONS) broadens how it measures the value of UK agriculture by including both primary production and processing and that government gives greater economic weight to nature by further embedding natural capital into economic measurement.

The methodology used by the ONS and Defra for measuring the economic contribution of each sector, including agriculture, is aligned to international standards. The review makes reference to different approaches used in other countries to measure the overall value of agriculture across the economy. We believe these approaches are framed around producing supplementary statistics, rather than changing the methodology for calculating GDP.

Defra and the ONS are committed to reviewing the approaches used in other countries and exploring whether the UK government can also produce additional statistics to take into account the contribution of domestic agriculture in primary and secondary processing activities.

The ONS and Defra have also committed to work together to improve the use of Natural Capital Accounting (NCA) to inform policy development, as well as reviewing whether additional statistics would be of value.