UK’s “New Deal for Farmers”: Union leader dismisses proposals as insufficient for industry survival

The UK’s secretary of state for Environment, Food and Rural Affairs (Defra), Steve Reed, has announced a raft of new policy measures to strengthen national food production and ensure financial and environmental sustainability. But campaigners say the proposals are insufficient to keep farmers in business amid harsh new tax and insurance laws. 

Reed delivered the proposals yesterday at the Oxford Farming Conference, saying the industry “stands on the edge of an unprecedented global transition” as energy prices, labor shortages and environmental footprints continue to rise. 

The address comes following widespread protests across the UK after inheritance tax laws were hiked, which industry leaders say will quickly put many of the country’s four million farmers out of business. 

Reed now promises to establish deals with the EU and other nations to boost international trade, in which animal welfare and environmental production standards will be upheld. He repeated pledges to ensure 50% of hospital, prison and military food will be sourced from British producers and to invest over £2.4 billion (US$2.95 billion) in flood defenses. 

The National Farmers Union (NFU) president, Tom Bradshaw, says these promises are not enough. “It fundamentally fails to recognize that the industry is in a cash flow crisis with the lowest farmer and grower confidence ever recorded. That’s today. Many are worried about making it to the end of 2025, never mind what happens 25 years down the line.”

“Devastating inheritance tax changes, national insurance hikes, crippling cuts to direct payments and delays to environmental schemes mean many businesses won’t survive to benefit from the ‘New Deal.’”

Planning reforms 

NFU president Tom Bradshaw reponding to the government announcements.Reed also announced that farmers will benefit from “the biggest planning reform in a generation.” This is part of the Labour government’s pledge to undo the damage caused by a £22 billion (US$27 billion) “black hole” left by the previous Conservative administration’s austerity policies.

“In Spring, we will consult on national planning reforms to make it quicker for farmers to build farm buildings, barns and other infrastructure they need to boost their food production. And we will shortly begin a series of planning roundtables with the sector,” he says.

“Planning rules have gotten in the way for too long. We will speed up the system so you can grow and diversify your business. Like chicken producers who want a larger shed to boost the amount of food they produce. Or vegetable growers who want to upgrade or expand greenhouses, polytunnels, packhouses or other facilities so they can become more productive.” 

He also alluded to new technologies sweeping through global agricultural production, including robotic milking and genetic breeding. 

But the NFU says these plans will not offset profit losses incurred by immediate tax pressures and loss of direct payments. 

“The government must now face up to the reality of the fierce policy headwinds and challenging market conditions the industry is facing and act to secure the future of British farming,” says Bradshaw, asserting the first priority should be to pause the planned changes on inheritance taxes and delays to environmental schemes. 

“To have a genuine reset moment with farmers and growers after the inflationary budget, all of these issues need to be addressed. Only then can the government’s long-term vision be achievable. As we go through the details of today’s announcements, we will continue to engage with Defra and stand up for the voice of British farming.”