Independent farm profitability review flags 57 recommendations as farmers face inheritance tax fears

An independent review into English farm profitability published on Thursday outlines 57 recommendations designed to boost productivity, investment and resilience in agriculture, even as farmers remain anxious about government plans to change inheritance tax for farm businesses. The long-awaited government-commissioned analysis, led by Baroness Minette Batters, finds the sector under steady pressure from rising costs, extreme weather and a crowded policy landscape, but it stops short of endorsing specific tax changes while highlighting them as the single biggest concern raised in talks with farmers.

Batters, a former president of the National Farmers' Union, outlined a framework she described as a "new deal for profitable farming" that would recognise the true cost of producing food and delivering for the environment. She stressed there is "no silver bullet" to making farms in England profitable, and she cautioned that the report should not be read as a workaround for tax policy. The review does not dissect the inheritance tax changes in detail, but it notes the tax shift being contemplated for farm businesses valued above £1 million at a 20% rate from April 2026 is a looming anxiety for many in the sector. The author said the concern was raised by almost everyone she spoke to as part of the process and that it contributes to ongoing questions about viability and profitability.

Environment secretary Emma Reynolds said the government would pursue closer collaboration with farming and food industries through a newly formed farming and food partnership board. The board, she said, would bring together senior industry and government leaders to drive growth, productivity and long-term profitability across the sector. "When farming thrives, the whole country benefits. British farmers are central to our food security, our rural economy and the stewardship of our countryside," she added, promising serious action to remove barriers, unlock investment and improve the food system so farm businesses can grow, invest and plan for the future with confidence.

The report paints a stark view of the economics facing many producers. It estimates costs will be about 30% higher in 2026 than in 2020, while the £2.4 billion farming budget for England has been largely static since 2007 even as farmers are asked to comply with more environmental requirements. Batters said farmers do not want handouts but rather a workable framework in which their products can be produced profitably with a fair return for what they grow. The findings come as uncertainty builds around the Sustainable Farming Incentive scheme, the post-Brexit agricultural payments program, and the inheritance tax changes, creating what Batters described as ongoing concern about viability and profitability in the sector.

The National Farmers' Union welcomed the review as thorough and complex, noting that reform is needed. NFU President Tom Bradshaw highlighted fairness in the supply chain as a top priority alongside planning reforms and a scaled focus on expanding exports. He cautioned that immediate actions were needed, including clearer guidance on the future of the SFI and addressing the inheritance tax proposals that could affect many farm businesses.

Gavin Lane, president of the Country Land and Business Association, echoed a sense of urgency. He said profitability across the sector is "perilously slim" and that many farm businesses are marginal or loss-making even before the impact of the inheritance tax bills, which he warned could be unaffordable and prohibitive for continuing operation in numerous cases. He urged policymakers to act quickly on the report’s recommendations and to translate them into practical measures on planning, investment and finance.

Defra and government officials said the response would include reforms to planning to prioritise food production, faster construction of on-farm reservoirs and polytunnels, and easier access to investment for farm shops and other ventures. They also signaled continued focus on supply chain fairness, reducing barriers to private finance and expanding exports and new markets, arguing that these steps would help raise profitability and resilience across the sector.

Taken together, the report and the government’s response place farming at the heart of broader economic and rural policy debates, underscoring the role of agricultural productivity in food security and rural livelihoods. While the inheritance tax question remains a flashpoint for many producers, policymakers say the 57 recommendations offer a roadmap for strengthening the sector, improving investment signals, and supporting farms through a period of high input costs and climatic volatility.