12 key takeaways from Batters’ Farm Profitability Review

The Farm Profitability Review, led by former NFU president Baroness Minette Batters and commissioned by the UK government, paints a stark picture of a sector under sustained pressure.

Rising costs, extreme weather events, volatile markets and policy uncertainty are leaving many farmers, particularly in the arable sector, questioning “viability, let alone profitability”.

The 155-page report (opens as PDF) stresses there is “no silver bullet” to restore profitability, calling instead for co-ordinated action from government, industry, and farmers themselves.

See also: Batters’ Farm Profitability Review finally published

Key recommendations include a National Plan for Farming to align economic, environmental and trade policy; the creation of a Food and Farming Partnership Board to give farmers a stronger voice; and continuous monitoring of progress – with six-monthly reviews and a full re-review in 18 months.

While the review emphasises long-term resilience, innovation and supply chain fairness, it acknowledges widespread concern over inheritance tax (IHT) changes, which could eclipse farm profits and discourage investment.

Crucially, the review urges greater recognition of farming’s broader economic and environmental value, calling on the UK government to work with the Office for National Statistics to measure its full contribution to national GDP.

Here are 12 key takeaways from the report:

1. Farm profitability is under severe pressure

Rising costs – from energy and wages to machinery and labour – are leaving many farmers questioning “viability, let alone profitability”.

2. Policy uncertainty is a major barrier

Uncertainty around core schemes, such as the Sustainable Farming Incentive in England, and proposed farm inheritance tax changes create “significant ongoing concern”.

3. No single solution exists

Profitability challenges vary across sectors and regions, requiring co-ordinated short-, medium-, and long-term action rather than quick fixes.

4. Farming underpins rural economy and food security

The UK farming sector is the foundation of a £150bn agri-food supply chain, or 6% of the economy, and a cornerstone of national food security, meeting approximately 65% of domestic demand.

5. A national plan for farming is essential

Co-ordinating policy across government departments will put farming at the heart of economic, environmental and trade strategy.

6. Partnership working must replace fragmentation

The report calls for a Food and Farming Partnership Board to bring together government, industry and farmers, to set direction and remove barriers to growth.

7. Supply chain fairness needs strengthening

Improved transparency and fairer terms, including extending origin labelling and enforcing existing codes, are recommended.

8. Better data and market monitoring are crucial

Farmers need reliable price signals and market intelligence to plan production and respond to volatility.

9. Skills, innovation, and productivity must improve

Stronger knowledge exchange, closer links with science and innovation, and standardised metrics for soil and carbon performance are key to boosting farm productivity.

10. Investment incentives and tax need review

The report recommends reviewing capital allowances and full expensing, alongside improved access to finance, including government-backed low- or zero-interest loans for new entrants and expanding businesses.

11. IHT is a critical concern

The review signposts farmer anxiety over the impact of upcoming inheritance tax changes on family farms, which industry voices argue could dwarf annual profits and discourage long-term investment.

12. Continuous review will ensure progress and accountability

Government and industry should monitor initiatives every six months, with a full re-review in 18 months, covering everything from supply chain fairness and green infrastructure to regional collaboration and market monitoring.