The long-awaited review by Batters said there needs to be a “new deal for profitable farming” that should recognise “the true cost of producing food and delivering for the environment”.
She said there was no “silver bullet” to achieving farming profitability and highlighted the challenges facing British farming including increases in the cost of energy, wages, National Insurance Contributions, as well new farm machinery prices that are up by 31%.
Responses to the Farm Profitability Review, showed that farmers and growers are feeling “firsthand” the impacts of volatility, extreme weather and rising input costs.
The review also said many farmers are currently facing “huge economic challenges” to produce high quality, affordable food and meet environmental demands.
Concerns were also raised about the uncertainty surrounding the closure of applications to Sustainable Farming Incentive Scheme and the proposed changes to inheritance tax on family farming businesses.
Batters said in the review: “Farming is our only remaining primary manufacturing sector that still exists in every county across the country. Farmers by their very nature are entrepreneurs and together we will all benefit from growing, creating and selling more of what we’re good at.”
She added: “We need a ‘New Deal for Profitable Farming’ that recognises the true cost of producing food and delivering for the environment. It can best be achieved by developing a meaningful national plan and partnership with government, in line with countries like New Zealand, Australia, the USA and Ireland.”
In response the Government has announced the launch of a new Farming and Food Partnership Board, to help drive growth, productivity and long-term profitability across the sector.
Chaired by Environment Secretary Emma Reynolds, with Farming Minister Dame Angela Eagle as deputy, the Board will bring together senior leaders from farming, food production, retail, finance and government to take a practical, partnership-led approach from farm to fork to strengthen food production.
Environment Secretary Emma Reynolds said: “When farming thrives, the whole country benefits. British farmers are central to our food security, our rural economy and the stewardship of our countryside.
“Baroness Batters’ Review underlines the need for government, farming and the food industry to work much more closely together. That is exactly what the new Farming and Food Partnership Board will do.
“This is about serious action to remove barriers, unlock investment and make the food system work better, so farm businesses can grow, invest and plan for the future with confidence.”
Batters added: “I’m pleased that the Secretary of State recognises the need to establish a new approach to growing the British brand at home and abroad by producing, creating and selling more from our farms in a measurable way.
“With ever more extreme weather, the horrific, ongoing war in Ukraine and 69.7 million people in the UK now is the time to deliver food security as national security.”
The Board will focus on removing barriers to investment, improving how the supply chain works and unlocking growth opportunities across different parts of primary production and processing. It will have a clear emphasis on supporting agricultural productivity, homegrown British produce and strengthening food security.
Alongside the launch of the Board, ministers said they are setting out immediate actions to back farm businesses, including working with Ministry of Housing Communities and Local Government to make food production a clearer priority in the planning system.
It has also pledged to step up action on supply chain fairness, including continued scrutiny of unfair practices and consideration of changes to Groceries Code Adjudicator oversight.
The Government said it would also tackle barriers to private finance and support exports and new markets.
The review puts forward 57 recommendations which the Government will respond to through the new 25-Year Farming Roadmap, due for publication next year.
