Farming News - Government must take bigger picture approach, according to leading property consultancy

Government must take bigger picture approach, according to leading property consultancy

Leading property consultancy Fisher German says it is vital that the government begins thinking longer-term and takes a bigger picture approach when it comes to the farming sector following the publication of DEFRA’s Farm Profitability Review.

David Kinnersley, Head of Agribusiness at the firm, adds that farmers should look to understand the report and be ready to engage if any of the key recommendations from the review come to fruition.

 

DEFRA’s Farm Profitability Review, led by Baroness Minette Batters, is a sensible and coherent paper which aims to foster resilience and growth in the sector.

It covers many of the key themes that have been debated over the decades, which Baroness Batters herself recognises, so there was little surprise in its content.

The government’s formal response will follow later this year with the publication of its 25-year roadmap for farming. My prediction, however, is that with significant pressures on public finances, limited political bandwidth and competing priorities across departments, there is a risk that some of the longer-term recommendations may struggle to gain traction.

A key message within the review is the need to stop viewing farming in isolation. While agriculture is often described as contributing just 1 per cent of GDP, this is narrow and misleading. It is absolutely correct to highlight this as farming underpins a far larger ecosystem through the food and drink industry, rural employment, supply chains and exports. Its influence stretches well beyond the farm gate.

The report’s focus on healthy food is particularly welcome, drawing a clear connection between domestic food production and the health of the population. This aligns closely with the conclusions of the Dimbleby food strategy published several years ago, reinforcing the argument that better use and promotion of British food could play a significant role in tackling diet-related illness.

It is certainly something which the government should take note of in its roadmap for farming. In a world where there is a lot of constraints on government spending and a runaway NHS budget, alongside concerns that obesity-related conditions continue to rise, the opportunity to reduce long-term healthcare costs through healthier diets should not be overlooked. The government needs to think about the bigger picture, despite the possibility of future changes in administration, if impactful changes are to be made.

Another important strand of the review is its emphasis on soil health, natural capital and environmental outcomes. Initiatives such as the Soil Shot and the Nature Taskforce point towards the development of new green finance mechanisms, with the potential for robust metrics around insetting and offsetting, supported by high-integrity standards through the British Standards Institution.

There is a clear appetite within the farming industry to adopt more sustainable practices, yet funding remains a significant barrier. This is again something which the government should take note of. As existing schemes such as the SFI are expected to be simplified, there is concern that support may not fully bridge the gap between aspiration and affordability. The development of credible nature markets could provide an alternative route, enabling private farming businesses to benefit from private funding through well-structured schemes with clear provenance.

Overall, the Farm Profitability Review is well worth engaging with. Farmers and landowners should take the time to understand its recommendations and consider how it might fit within their own businesses. Active involvement with agri-growth hubs, industry boards and local partnerships will be increasingly important as these discussions evolve. While government direction will matter, the future of the sector will also be shaped by those willing to engage.