Food production in England is no longer financially sustainable for many farm businesses, according to a government-commissioned review led by Baroness Minette Batters.
The Farming Profitability Review 2025, which has been published by Defra, states that rising input costs, labour pressures, volatile weather and policy uncertainty are undermining farm incomes across all sectors. The review concludes that many farms are struggling to generate sufficient returns to support long-term investment or business resilience.
Although the review does not focus on individual sectors, its findings are relevant to poultry producers, who face high exposure to feed, energy and labour costs. The review highlights that capital-intensive businesses are particularly affected by uncertainty over policy direction, which can reduce confidence to invest in buildings, technology and biosecurity.
The review sets out 57 recommendations aimed at improving profitability, including calls for clearer and more stable agricultural policy, greater transparency and fairness in supply chains, improved access to data and finance, and action to ease labour pressures. It also records widespread concern among farmers about the impact of inheritance tax on business continuity, although no tax changes are proposed.
Defra said it welcomed the findings and has established a new Farming and Food Partnership Board to work with industry on implementing the recommendations. The department said further work will take place in 2026 to assess how the proposals can be taken forward.
Inheritance tax was one of the most significant concerns raised by farmers in evidence submitted to the review. Many respondents cited the proposed changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) as the single biggest issue affecting farm viability.
The review notes that the planned reforms, which will see farms with qualifying assets above £1 million lose full relief and be subject to a 20% inheritance tax on the excess value, have created significant ongoing concern among farming businesses.
Batters said she has “great sympathy” for farmers worried about these changes, but made it clear that offering proposals on inheritance tax was not within her remit for this review.