Secretary of State for Environment, Food and Rural Affairs
(): Farmers are at the heart of
our national life – for what they produce, the communities they
sustain, and the landscapes and heritage they protect.
Since becoming Secretary of State, I have seen first-hand the
resilience farmers show in the face of increasingly unpredictable
weather and volatile markets, their innovation in finding new
ways to farm productively and sustainably in a changing climate,
and determination to build businesses that they can pass on to
the next generation.
Today, at the Oxford Farming Conference, I have announced a
package of measures that show that we are serious about
partnership with the farming sector, that we are committed to
giving farmers clarity and stability, and that we are backing
farmers to grow their businesses with confidence and resilience.
We recognise that when British farming thrives, consumers benefit
through affordable, high-quality food on their tables. We are
ensuring modern British agriculture is productive, profitable and
sustainable.
This was a key theme in the recommendations from Baroness Batters' Farming
Profitability Review(opens in a new tab). In response to the
Review, we are establishing the Farming and Food Partnership
board, which will give farmers and food businesses a seat at the
table when policy is developed. This is part of our ongoing
commitment to work in partnership with farmers to make decisions
that stand for the long term - not just for the life of one
Parliament, but for the future of British farming.
At the heart of this partnership, is listening. I have listened
to farmers and stakeholders about their concerns on proposed
changes to inheritance tax. That is why we're increasing the inheritance
tax threshold for Agricultural and Business Property Relief(opens
in a new tab) from £1 million to £2.5 million. This means
couples can now pass on up to £5 million without paying
inheritance tax on their assets. That is on top of the existing
allowances such as the nil-rate band. Around 85% of estates
claiming Agricultural Property Relief, including those also
claiming Business Property Relief, will pay no more inheritance
tax in 2026/27. The reforms will still ensure the wealthiest
estates do not receive unlimited relief.
Today's package of announcements include:
-
An update on the Sustainable Farming Incentive (SFI)
– Including our plans to simplify the scheme and make
it more focused, with fewer actions and less complexity.
Previously, 90% of SFI spending went on fewer than 40 of the
102 actions available. A quarter of SFI money goes to just 4%
of farms. This is not fair. We will improve fairness and
accessibility, including by initially opening the scheme to
small farms and those without an existing agreement. We are
committing to greater stability following lessons learned from
last year, including regular updates on uptake. These reforms
will also help us meet our ambitious Environmental Improvement
Plan target to double the number of farms delivering for
wildlife, while recognising that food production is the core of
farmer's businesses. SFI needs to work alongside food
production, not displace it, and so we will also review how
much land can be put into certain actions and review payment
rates for others.
-
£30 million Government investment in the Farmer
Collaboration Fund, funding peer-to-peer networks and advice
– we are developing a new approach that will provide
funding for existing and new farmer groups and networks. It
will help those groups to connect with experts and create
strong partnerships on everything from environmental action to
business growth.
-
A long-term transformation of England's upland
areas – Our uplands provide over 70% of our drinking
water, support rural livelihoods and are home to precious
wildlife and beautiful landscapes. And they produce food in
some of the most challenging conditions anywhere in the
country. For too long, upland communities have faced a perfect
storm. Economic fragility. Social isolation. Environmental
pressures. We want to change that. Over the last year, we've
started working with social entrepreneur Dr Hilary Cottam on a
new approach - an approach where we get out on the ground and
talk directly to upland communities. This has been the
beginning of what is a long-term partnership starting with
communities in Dartmoor, then Cumbria. Working with Hilary, our
next step will be to develop a place-based approach for what
these communities need, co-designing solutions to specific
problems - for example, by developing a common understanding of
how land can be best used for food production and the public
good. Together we will look at pooling public, private and
third sector resources, laying the foundations for new income
streams, and creating the skills and networks that let
communities lead their own transformation.
-
Extending the Farming in Protected Landscapes (FiPL)
programme for another three years, with £30 million in funding
next year - This locally led programme has farmers and
FiPL advisers working side-by-side to deliver projects tailored
to their landscapes. This extension means farmers in our most
precious landscapes can continue delivering for nature, climate
and their communities.
We will continue to work alongside farmers to deliver these
changes through our new Farming and Food Partnership Board -
through peer-to-peer networks, through community-led change, and
through engagement on the detailed changes to SFI.
We will provide the certainty farmers need to plan, giving clear
timelines, and a clear way forward with the Farming Roadmap,
later this year.
And we will deliver growth built on strong foundations:
profitable farming and a thriving environment – not as a
trade-off, but as two sides of the same coin.
