Farmers are expressing deep concern and uncertainty over their future due to the government’s planned changes to inheritance tax, according to a new independent review of farm profitability. The report, commissioned by the government, was released on Thursday and includes 57 recommendations aimed at boosting productivity, investment, and resilience in agriculture.
Baroness Minette Batters, former National Farmers’ Union president and author of the review, cautioned that there is „no silver bullet” for making farms in England consistently profitable. Environment Secretary Emma Reynolds said the government will work more closely with the farming and food sectors through a newly established Farming and Food Partnership Board, which will bring together senior leaders from industry and government to promote growth, productivity, and long-term profitability.
Baroness Batters called for a “new deal for profitable farming” that accounts for the real costs of food production and environmental stewardship. While the review did not specifically examine the inheritance tax changes, set to apply to farm businesses valued over £1 million at a 20% rate from April 2026, it found this to be the top concern among farmers.
The review highlighted the sector’s struggles with rising costs, extreme weather events such as this year’s severe drought, and uncertainty over the closure of the Sustainable Farming Incentive, the post-Brexit agricultural payments scheme. Many farmers reportedly feel “bewildered and frightened” about their future, with some questioning the viability of their businesses.
Costs are projected to be 30% higher in 2026 than in 2020, while the £2.4 billion farming budget for England has remained largely unchanged since 2007, despite increasing environmental obligations. Baroness Batters emphasized that farmers are not seeking government handouts but rather a fair return for their work.
The NFU described the report as “thorough and complex,” highlighting supply chain fairness, planning reforms, and export growth as key priorities. The Country Land and Business Association warned that many farm businesses are already marginal or loss-making and could face inheritance tax bills far exceeding their annual profits.
In response, the government said it is taking steps to reform planning regulations, facilitate on-farm investments such as reservoirs and polytunnels, improve supply chain fairness, and support exports and new markets.
