Farming Road Map and Profitability Review

The road map is organised around three outcomes that we need to deliver together with the farming sector. The first is profitable and productive farm businesses. Food production is the primary purpose of farming and a matter of national security. The road map backs our farmers to grow, invest and compete, delivering year-on-year productivity growth; Government support to invest in innovative approaches; fairer supply chains that do not leave farmers carrying disproportionate risk; better market access, so that British food can reach more customers at home and abroad; smarter regulation that reduces the burden on farmers; more collaborative models, such as co-operatives, to help lower costs, spread risk and support stronger returns; and, most of all, the stability and certainty that investors and farm businesses need to invest with confidence. To that end, I can confirm today that we will launch a dedicated task-and-finish group to unlock private finance in sustainable farming. The new Farming and Food Partnership Board has started work on the first sector growth plans for horticulture and poultry, with more sectors to follow.

The second outcome is a sustainable farming sector. Healthy soils, clean water and thriving ecosystems are the foundations of strong food production. We will support the shift to lower-input, lower-emission farming, not by directing every decision on farms but by ensuring that the right incentives, advice and regulation are in place. Our environmental land management schemes, backed by £11.8 billion over this Parliament, are already delivering sustainable and profitable farming, now and for the future. This is the biggest budget for nature-friendly farming in our history. I can confirm that next week we will reopen the sustainable farming incentive for small farms and those without existing agreements. The total budget for this year will be £240 million, with £60 million ringfenced for those eligible in window 1. We will continue to refine our schemes in partnership with the sector. The road map gives equal importance to food security, profitable farming and a healthy natural environment, because they are all critical to protecting our national security.

Thirdly, and finally, we need a resilient farming sector that is ready for whatever comes next. We live in a volatile world. The pressure on fertiliser and fuel prices underlines why we need farming systems that are less exposed to global shocks. At the same time, climate change is reshaping growing conditions and technology is moving fast. The road map sets out how we will strengthen our climate resilience, ensuring that farmers are able to adapt and to tackle the impacts of droughts and flooding.

Today I can confirm that we are investing an additional £53 million in the farming innovation programme to help farmers harness new technology that can improve productivity, reduce reliance on inputs and increase long-term resilience. That brings the total investment in innovation funding to £123 million, which, along with £50 million in equipment funding, puts British farmers at the forefront of agricultural advancements.

To further secure the future of farming, we will invest in the skills and people the sector needs by supporting training and new entrants, so that farmers’ hard-earned knowledge is passed down to the next generation. Tenant farmers manage around a third of England’s farmland, and tenancies play a key role in supporting new entrants. We want a vibrant tenanted sector, and the road map commits to making schemes, policies and tenancy agreements work for tenants.

Upland farmers are also vital to our food production, land management and rural communities. They often operate in challenging physical and economic conditions. The road map sets out how we intend to improve access to schemes and support for upland farmers, and we have asked Dr Hilary Cottam to identify opportunities for upland communities to flourish.

The road map was not written in Whitehall and handed down; my team in the Department and I have visited many farms across the country, and many more farmers have travelled to speak to us at regional events, and we have listened. The road map reflects our extensive engagement with farmers, growers, land managers and the wider food sector. As I mentioned at the start of my speech, farmers have asked for a Government who create the conditions for farmers to succeed, rather than directing every decision. The road map sets out clear roles for the Government, farmers, supply chain actors and the wider sector to make that vision a reality. Where new approaches are untested or deliver a wider public good, we will put Government investment behind them—in skills, data, innovation, technology and infrastructure.

The road map has been developed in partnership with the industry, and we want to continue to work in partnership as we implement it. This Government are proud to work with British farmers as we grow the future of farming. Together, we are building a more profitable, productive, sustainable and resilient farming sector, and I am confident that there is a bright future ahead. I commend this statement to the House.

In another leap from reality, the Government’s negotiations with the EU get barely a mention in this document, despite the enormous consequences they will have for farming businesses. CropLife UK has estimated that this EU reset could drain £810 million from UK farms and sacrifice almost 9,000 jobs from our rural constituencies. The Food and Drink Federation states that the wholesale handover of our food laws to the EU will lead to at least 400 regulations needing to be changed. So how will the Government ensure that UK farmers, including our tenant and upland farmers, can compete against heavily subsidised EU farmers? This matters because food security is critical in this increasingly volatile world. What reassurance can the Secretary of State provide that the next Cabinet will prioritise farming and food production?

We Conservatives view DEFRA as a vital economic Department, so we agree with its efforts to recalculate farming and food producers’ contributions to the economy. By the way, I note that Reform calls itself the farmer’s friend, yet there is not a single Reform MP in the Chamber.

Had the Secretary of State attended Cereals 2026 at Diddly Squat, she would have seen for herself that the sector is already driving innovation. The Government are therefore playing catch-up, but we hope that the intention to work with the Department for Business and Trade to deliver reductions in compliance costs and to focus on innovation and technology will actually happen. The plan to bring DEFRA farming services into one integrated service is much needed, and this reflects Conservative calls for quangos and the Department to be overhauled.

There are many questions still left unanswered in this report, and I hope that the Secretary of State will try to answer them rather than deflect, because that has been noticed. The plan looks to double the funding for Environment Agency inspections. Why are this Government focusing on bureaucracy rather than helping farmers survive? What does she say to the tenant farmer of a well-run dairy herd who has been told by the Environment Agency that they must invest up to £750,000 to guard against a “risk” that there “may” be a pollution event in 50 years’ time. As that tenant farmer said to me, there will not be a farm there in 50 years’ time, as they simply cannot afford that payment.

There is also no mention of closing the flag loophole on food packaging to help our constituents to buy genuinely British food and to back British farmers. Why not? The report says there will be no cut to food production, but it also says there will be a reduction of 9% in the land available to produce food. How can the Secretary of State guarantee that our food production will be protected when key tools, such as gene editing to develop drought-resistant crops, are at risk in the negotiations with the EU.

In her final act in this Department, will the Secretary of State please advise the right hon. Member for Makerfield (Andy Burnham) that the first thing he must do is axe the family farm and family business taxes completely? Otherwise, sadly, this will be a road map to nowhere for struggling farmers and food producers.

The shadow Secretary of State asks about the sanitary and phytosanitary deal, and I say to her that we are working very closely with the National Farmers’ Union and other farming stakeholders, because that deal is all about bringing down the barriers put up by the previous Government at the border that make it so much harder both to export raw ingredients and food, and to import.

I thank the shadow Secretary of State for what she said—this is one thing we do agree on—about both Baroness Batters and my saying that we must make sure the farming sector is more accurately measured. I think we need to reassess that, so that we do not just assess what is done on farm, but look at this from farm to fork, and therefore see the vital role of the farming sector in our economy.

The shadow Secretary of State asks about the Environment Agency. I will make no apologies for increasing the funding of the Environment Agency, which was so harshly cut under her Government. I will also make no apologies about having a plan, in this document and more broadly, for how we work with farmers to ensure that agricultural pollution is a problem we tackle together.

The shadow Secretary of State asks about gene editing and the SPS deal, and those negotiations are ongoing. However, we want to ensure that our farmers are able to use the best technology. We lead in agricultural technology in our country, and we want to make sure that it is harnessed by our sector. That is why there is such a big emphasis in the road map on the importance of innovation, and why we are dedicating Government funding to innovation, and on farmers sharing best practice so that they can become more profitable over time.

The reopening of the SFI is welcome, as is the update on the upland review, but still the Government insist on a first-come-first-served application process which always disadvantages our poorest farmers. On the uplands, the continued failure to provide support for common land is leaving our most precious landscapes, which make up 25% of the land mass of my constituency in the Lakes and the Dales at the risk of wildfires and biodiversity collapse, while our upland farmers sink into greater poverty. Is the road map not warm words but cold comfort for the uplands?

The review fails to put into practice the recommendations, in any serious way, of the Rock review on farm tenancies. [Interruption.] I will come to a conclusion. Does the Secretary of State not see that if tenants do not have protected long-term tenancies of at least eight years, they will have no chance of meeting the long-term environmental goals? Will she protect tenants from being evicted from their land in order to meet those goals?

Very finally, this is a report—

A third of land is tenanted; it is a really important sector. We want a vibrant sector. I appointed the country’s first ever Commissioner for the Tenant Farming Sector, Alan Laidlaw. We know that a lot of tenants are very anxious about the shift away from long-term tenancies to shorter-term tenancies, so he is right to raise that. We have also commissioned the Law Commission to look at agriculture tenancy law. We are working with the sector to see what more we can do to ensure longer and more secure tenancies.