Defra outlines steps to improve farm profitability as Minette Batters’ major report is published

Minette Batters wrote the profitability report

Minette Batters wrote the profitability report

Image: NFU

The government has pledged to take steps to make domestic farming more profitable, including the launch of a new Farming and Food Partnership Board.

Defra this week published the independent Farming Profitability Review 2025 – written by former NFU president Baroness Minette Batters – which stressed that farming is different to any other part of the economy and highlighted the need to achieve a thriving farming sector and rural economy in England.

The review outlined a raft of ambitions to offer a ‘new deal’ for society and a more profitable farming industry. Those included growing the unique selling point of ‘Brand Britain’ and increasing demand for British produce and raw ingredients through exports, supermarket sales, public procurement sourcing, manufacturing of raw ingredients and out-of-home sales.

It spoke about the need to value nature, biodiversity and water quality, to raise levels of productivity and incentivise resilience by optimising food production, and stressed the need for supply chain fairness.

Among other recommendations, the review called for the establishment of a government, industry and farmer partnership, a plan for specific sector goals, and the need to develop a ‘National Resources, Circular Economy and Environmental Balanced Scorecard’ to predict and plan demand for wood, fuel, environmental horticulture and fibre.

That should sit alongside a ‘National British Food Balanced Scorecard’ for food retail and out-of-home sectors, the report said, to track British sourcing commitments against sector missions.

Defra responds with new board announcement

Defra, which said it will respond to the review’s findings in due course, announced the launch of a new Farming and Food Partnership Board to drive growth, productivity and long-term profitability across the sector.

Chaired by environment secretary Emma Reynolds, with farming minister Dame Angela Eagle as deputy, the board aims to bring together senior leaders from farming, food production, retail, finance and government to take a practical, partnership-led approach from farm to fork to strengthen UK food production.

The board will focus on removing barriers to investment, improving how the supply chain works and unlocking growth opportunities across different parts of primary production and processing, Defra explained. It will have a clear emphasis on supporting agricultural productivity, homegrown British produce and strengthening food security.

Reynolds said: “When farming thrives, the whole country benefits. British farmers are central to our food security, our rural economy and the stewardship of our countryside.

“Baroness Batters’ Review underlines the need for government, farming and the food industry to work much more closely together. That is exactly what the new Farming and Food Partnership Board will do.

“This is about serious action to remove barriers, unlock investment and make the food system work better, so farm businesses can grow, invest and plan for the future with confidence.”

Defra also stressed that alongside the launch of the board, ministers are setting out immediate actions to back farm businesses, including:

  • Unlocking food and farming infrastructure through planning reform, and working with the Ministry of Housing, Communities and Local Government to make food production a clearer priority in the planning system;
  • Stepping up action on supply chain fairness, including continued scrutiny of unfair practices and consideration of changes to Groceries Code Adjudicator oversight;
  • Tackling barriers to private finance, bringing together farmers, agri-food businesses and major financial institutions to attract investment into farm transformation and productivity;
  • Supporting exports and new markets, with ministers leading dedicated trade missions in 2026 to showcase British food and drink overseas. 

Industry responds

Responding to the publication of the Farm Profitability Review, NFU president Tom Bradshaw said: “This is a thorough and complex report, and we will take our time to digest the details and analyse the recommendations made by Baroness Batters to improve the profitability of Britain’s farming businesses.

“As we continue to face huge and wide-ranging challenges from geopolitical uncertainty and trade deals that threaten to undermine our marketplace, to uncertainty around the future of environmental schemes, extreme weather events, continued price volatility and the unfair family farm tax, this report is right to recognise that reform is needed.

“Changes that will drive competitiveness and profitability, which are critical elements of thriving farming businesses, are also crucial to achieving the government’s own targets for economic growth.”

Bradshaw noted that in the NFU’s submission to the review, it set out its key priorities that it believes are needed to provide stability and restore farmer confidence. “It’s therefore encouraging that the five priority areas singled out by Defra are consistent with what the NFU has been calling on government to prioritise,” he said. 

“The creation of a new farming and food partnership board with profitability and food security at its heart will enhance collaboration and ensure the government and industry can work in partnership delivering on the issues that matter most for the sector.”