‘No stone unturned’ in farm profit review

• Goal to make farming more viable

• Six months to find Defra answers

• No ‘silver bullet’ to boost incomes

Former NFU president Minette Batters has pledged to leave no stone unturned after being appointed to lead a Defra review of farm profitability. 

Announced last month, the six-month review will see Baroness Batters provide recommendations on farm profitability to Defra secretary Steve Reed and farm minister Daniel Zeichner.

Listening to farmers and growers will be at the heart of the former farm leader’s work, says Defra. It will cover all land areas and sectors of the industry, as well as engaging with other government departments whose work impacts farmers.

Baroness Batters has been asked to provide short, medium and long term recommendations – and propose actions for the government and industry to support farming profitability as part of this government’s New Deal for Farmers.

Rural economy

She said: “I will leave no stone unturned in trying to find solutions to boost farm profitability. But we should be under no illusions how difficult this work will be.

“There will not be one ‘silver bullet’ to fire but I’m hopeful this review can make a difference to a sector that produces the nation’s food, underpins the rural economy and delivers so much for the environment.”

This work will be supported by the newly formed Profitability Unit within Defra. The aim is to help ensure the farming sector is more viable, self-sustaining and competitive in the long-term.

Baroness Batters said: “I’m pleased to be appointed to lead this review and look forward to working with farmers and growers to provide recommendations to government, food retailers, processors and manufacturers.”

Farming roadmap

The review will also help the development of the food strategy, farming roadmap and the Land Use Framework, and build on other work such as the review of Defra’s regulatory landscape led by Dan Corry.

Mr Reed has made improving farm profitability a key goal during his time as Defra secretary. He said: “Backing British farmers is the backbone of all work to support rural economic growth and boost Britain’s food security.

“We have taken strong action to protect the future of the sector with the New Deal for Farmers. But we must go further and faster as part of our Plan for Change to put money into the pockets of farmers and drive growth.”

Mr Reed said Baroness Batters’ experience as a farm leader made her uniquely placed to provide recommendations on tackling the deep-rooted problems holding the sector back and support farmers’ long-term profits.

Fair competition

The appointment is one of a number of actions the government says it is taking to improve the profitability of farmers, including through fair competition both up and down the supply chain.

It is also easing planning reforms to make it quicker for farmers to build the buildings they need on their farms, helping farmer diversify income streams and make additional money from renewable energy by accelerating connections to the grid.

Defra says it is focused on supporting farmers, rural economic growth and boosting Britain’s food security. It is developing a 25-year farming roadmap to make the sector more profitable in the decades to come.

Three key terms of reference

The Farming Profitability Review will examine:

• how farmers can reduce barriers to profitability, increase profit and manage their own risk to improve financial resilience, such as through embracing innovation, improving productivity, increasing market access and using risk management tools

• how the supply chain can support farm profitability such as through greater transparency, cooperation and ensuring a fairer distribution of risks, rewards and responsibilities

• whether there are other ancillary activities that farmers can undertake to support profitability and wider economic growth

Land market active – but buyers more cautious

Farmland prices remain broadly stable – despite the challenges facing the sector, suggest the latest figures from Strutt & Parker.

The farmland market in England remains active, with early indications suggesting the prices achieved in the first quarter of 2025 are broadly in line with late 2024, said Sam Holt, the land agent’s head of estates and farm agency.

“There has been a slight shift in the market, with sentiment inevitably being influenced by factors such as the inheritance tax changes, pause in the Sustainable Farming Incentive and pressure on farming incomes.

“However, while this is having some influence on supply and demand, the impact is not dramatic and prices have been holding firm.”

Better soils

Buyers remain active – but are more selective, said Mr Holt. Location remains key, with demand stronger for commercial farms on better soils. The market is slower in more remote areas with few diversification opportunities.

“The most sought-after assets currently are high-quality Grade 1 land and farms or estates which can generate additional revenue streams without requiring significant upfront investment,” he says.

“In contrast, properties with large residential portfolios or redundant buildings requiring conversion are facing more scrutiny due to high building costs and policy changes such as the Renters’ Rights Bill.”

Only 24 farms were publicly marketed in the first three months of 2025, compared with 32 in the last quarter of 2024, says Strutt & Parker. But with relatively few transactions completed, it remains too early to report average prices.

That said, values remain broadly in line with late last year. Data collected so far for 2025 points to arable land selling in the range of £8,300 to £13,500/acre, with pasture between £5,000 and £9,400/acre.

Mr Holt says he expects supply to continue to rise, although not enough to significantly alter the balance between supply and demand. High prices will continue to be achievable for the right farm in the right place.

“While buyers are becoming more selective, there remains an appreciation of land as a tangible asset – a sentiment that could strengthen further amid ongoing economic turbulence and uncertainty around global tariffs.”