NFU Conference: Steve Reed promises to make British farming profitable and viable

Speaking to farmers at the NFU Conference in Westminster, Steve Reed has revealed new plans made by the Labour government, including:

• Extending the seasonal worker visa route for five more years

• Providing a boost for British farmers under new requirements for government catering contracts to favour high-quality, high-welfare products that local farms and producers are well placed to serve.

• Providing £110 million investment in the Farming Innovation Programme, which supports research and development of agri-technology for farmers. The Farming Equipment and Technology Fund provides grants of up to £25,000 to buy new equipment such as electric weeders to reduce chemical use.

• Upholding and protecting high environmental and animal welfare standards in future trade deals.

• Setting up a new National Biosecurity Centre to transform the Animal and Plant Health Agency animal health facility at Weybridge, investing £200 million to improve our resilience against animal disease to protect farmers and food producers.

Aim to improve profitability for farmers

Environment secretary Steve Reed said: “I will consider my time as secretary of state a failure if I do not improve profitability for farmers up and down this country.

“Today I can announce I will set up a new farming profitability unit within the department to drive that goal.”

Mr Reed said that the Labour government would like to “treat farms as the businesses they are”.

“Farmers have repeatedly told me they want to stand on their own two feet. They are proud people, and rightly so. But it is paternalistic and patronising for government to treat farmers as if they are not operating in a marketplace in which they need to turn a decent profit.

“British farming has some of the hardest-working, most creative people anywhere in the British workforce, but a sector that isn’t profitable doesn’t have a future.

“My focus is on ensuring farming becomes more profitable because that is the best way to make your businesses viable for the future and that’s how we ensure the long-term food security this country needs.”

The secretary of state explained that this approach will underpin the government’s 25-year farming road map and its food strategy.

Mr Reed has also said that the government will help farmers who would like to diversify their income to put more money into their business so they can survive these more difficult times.

READ MORE: NFU Conference 2025: Family Farm Tax is ‘morally wrong’

‘Fairer’ supply chain

He added: “Our new deal for farmers is supporting farmers to produce food sustainably and profitably. It won’t all happen overnight, but we are already making changes.

“I’m pleased to announce that we are extending the seasonal work of visas for five years. That’s on its own is not the long-term solution. We will need to reduce the number of seasonal workers coming to the UK in the future, but I recognise your businesses need stability over the coming years as we work at pace to embrace innovation, develop the agri-tech and invest in new farming practices, so you can reduce your reliance on seasonal workers as quickly as possible.”

MP Reed added that the government is also making the supply chain fairer with new regulations for the pig sector coming in by the end of next month to make sure contracts clearly set out expectations and only allow changes if they have been agreed by all parties.

“For the first time ever, we are measuring where the public sector buys food from so we can use the government’s own purchasing power to back British produce wherever we can,” he explained.

He added: “Will promote robust standards nationally and internationally and will always consider whether overseas produce has an unfair advantage.

“British farming deserves a level playing field where you can compete and win, and that is exactly what you’ll get.”

‘We build the future together’

The secretary of state added that the UK government will not be tolerating illegal meat imports, as they carry a huge risk of diseases such as African swine fever and foot-and-mouth disease getting into the country.

He also promised to consult on national planning reforms this spring to make it quicker for farmers to build new buildings, barns and other infrastructure to boost food production and ensure permitted development rights work for farms.

Mr Reed continued: “The third element of our vision is nature. Restoring nature is vital to food production, not in competition with it. It’s healthy soils, abundant pollinators and clean water that are the foundation of farm businesses that they rely on to produce high crop yields and turnover profit.

“I want to thank everyone upland tenant, grassland farmers and others. Everyone who is involved in our farming schemes. Almost 50,000 farm businesses are now in schemes, and around half of farmland in England is being managed to enhance nature while producing food.

“I recognise the frustration when we had to pause the capital grants offer last year without proper warning because of unprecedented levels of demand.

“I promise to update you as soon as I could, and I can confirm today that every application submitted for capital grants before the pause in November will be taken forward, and following this, we will reopen the ELM Capital grants offer this summer.

“I’m also pleased to announce that we’re investing £30 million to increase payment rates in Higher Level Stewardship with immediate effect to bring them more closely in line with our other farming schemes.

“There’s a lot to be done to make British farming profitable and viable for the long term. I know we can only get there if we build the future together,” he continued.

Following the opening speech given by NFU president Tom Bradshaw, who called the Family Farm Tax “morally wrong”, Mr Reed said: “Even if the conversation gets difficult, I will always show up to have it because I respect this union and I respect British farming.

“Now, I can’t give the answer I know many of you want on inheritance tax, but I want you to know that I understand the strength of feeling in the room and in the sector.”

Plans welcomed by industry leaders

Country Land and Business Association (CLA) president Victoria Vyvyan commented on the news delivered by the secretary of state: “The CLA has been calling for an increase in Higher Level Stewardship (HLS) payment rates across a range of options, so this is a welcome announcement and will boost thousands of agreement holders.

“It is also pleasing to see continuity of schemes such as Farming in Protected Landscapes, which the CLA has long-championed and has been well-received by farmers, though it lacks the crucial detail of the size of the funding pot.

“Under the pressure of government’s inheritance tax changes it will be hard for farms to take advantage of the opportunity to supply schools, hospitals and prisons.

“We also welcome another window of the Farming Equipment and Technology Fund (FETF) this spring, and hope the reopening of the capital grants scheme later this year will help to restore some confidence in the system after last year’s frustrations.”

‘Step in the right direction’

James Robinson of Nature Friendly Farming Network (NFFN) said that plans announced by MP Reed are a “step in the right direction for farmers”.

He added: “I particularly welcome increased payments and the reinstating of capital grants for environmental work on farms, especially with the sensible cap on individual grants to allow more farmers to access financial support for things like hedge planting. We have been pushing the Government on this for some time, so it is heartening to see that ministers are listening.

“However, there is still a lot of work to be done to deliver the climate-resilient, financially-viable, nature-friendly farming sector we need for the future. The government needs to get the higher-level schemes such as Landscape Recovery and Countryside Stewardship Higher Tier rolled out at scale as soon as possible. Our most ambitious farmers who want to do the most for nature, the climate and our landscapes are still not being given enough support.”

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