Are latest policy changes enough to placate farmers?

After a year of frustration and anger for farmers, a slew of consequential announcements were made by the government in the run-up to Christmas.

On 18 December the long-awaited Farm Profitability Review, authored by former NFU president Minette Batters, was published. On 22 December the Animal Welfare Strategy was announced. And the following day came the most politically charged move of all: the Treasury committed to a partial u-turn on Inheritance Tax, increasing the level of the Agricultural & Business Property Relief threshold from £1m to £2.5m. Come April, couples will be able to pass on up to £5m in qualifying assets between them before paying IHT – on top of existing allowances.

So after months of protests, was it enough to placate farmers? Last week’s Oxford Farming Conference was an ideal opportunity to test the mood.

“This is everything we can get from this government,” said NFU president Tom Bradshaw of the IHT u-turn. “We should welcome the fact that, even if it’s the 11th hour, they have been willing to listen.” 

Batters added that farmers now “need to move on” and accept a “really good result”. 

And while vocal protestors outside the venue insisted they “won’t stop”, inside, environment secretary Emma Reynolds drew a red line on IHT by saying “that is it now”.

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The start of the new year has also seen further announcements. Along with IHT, the government faced fierce criticism last year over its handling of the Sustainable Farming Incentive, which unexpectedly closed to applications in March only to reopen after uproar.  

After months of confusion about whether it would continue, the government confirmed last week there would be two application windows in 2026, in a simplified scheme prioritising smaller farms.

In the dark

British Apples and Pears executive chair Ali Capper says it could be “an opportunity for horticulture [but] the missing detail is the size of the fund”.

NFU VP David Exwood echoes the sentiment, saying: “Until we get that final detail, we’re all in the dark.”

Batters’ review had called for a “sea change” in government communications with farmers, who need a “new deal” and recognition of the “true cost of producing food and delivering for the environment”. 

While the government is yet to publish its full response, Reynolds’ presence at the conference was taken as a signal of intent by attendees. It was noted that after delivering her speech, Reynolds remained at the conference with her team, in contrast with poor engagement by some of her predecessors.

DAERA minister Andrew Muir says: “The previous secretary of state for Northern Ireland told me I would never meet the Defra secretary and I never did.”

But it’s one thing to talk the talk and another to “walk the walk”, Capper adds. And the Animal Welfare Strategy will be an early test of how committed the government is to listening.

Two consultations – one on lamb tail-docking and castration and another on phasing out caged egg production by 2032 – were launched on Monday.

While broadly welcomed, Bradshaw says higher standards must be paired with steps “to ensure consumers are protected from imported food that [is] produced to lower standards”. Farmers should not be “asked to compete” with products which would be illegal to produce here, he adds.

The recent flurry of announcements may provide evidence of the government’s keenness to engage. But more detail and action will be needed to rebuild ties.