Government unveils farming reforms, but questions remain on ambition and implementation

The announcements, which aligned with three core tenets of DEFRA's 'vision for the farming sector', which were:

• Food Production at the core of farming
• Profitable farms - profitability more broadly, including fair prices, fair supply chains, productivity improvements and also diversification
• Restoration of nature

Announcing the reforms, DEFRA Secretary Steve Reed stated that farm profitability is a key priority:

    “The underlying problem is that farmers do not make enough money for the hard work and commitment they put in. My focus is on ensuring farming becomes more profitable because that’s how we make your businesses viable for the future.”

Public sector procurement changes

Building on commitments made at this year's Oxford Farming Conference, Steve Reed reaffirmed Labour’s manifesto pledge that 50% of publicly procured food will come from local or higher environmental standards. He announced that government catering contracts will be required to prioritise high-quality, high-welfare food, ensuring that at least half of public sector food spending is directed toward British producers or those meeting stronger environmental standards. The move is intended to create a more stable and reliable market for UK farmers.

However, concerns remain over whether these commitments will be backed by legally binding rules to ensure enforcement. Ruth Westcott, Climate and Nature Manager at Sustain, commented:

"We welcome the announcement around public sector food. The government has already promised to buy local and sustainable for food bought with the public's money, and we already have rules that are supposed to make prison, military and hospital food support high-quality British produce. We know from experience that unless standards are legally binding and enforced, they don't work. We also need to fully use the potential of public sector food. If all school children had a healthy free school meal we could reduce inequality and deliver so many more benefits to farmers as well as reducing greenhouse gas emissions."

There was also concern about the feasibility of these reforms without investing into public sector meal funding and supply chains. Barbara Crowther, children's food campaign manager said:

"There is a huge opportunity to leverage the power of school meals to deliver for both the nation's schoolchildren and the nation's farmers and food producers. However, there is a current disconnect and squeeze on value in public sector catering that needs to be addressed to make it work in practice. If free school meal funding had risen with inflation since 2014, it would be £3.11 today, not the £2.53 per meal currently provided. If we want to return fair value to farmers, ensure decent work in public sector catering and put healthy, British produce on schoolchildren's plates, the government must put in place the right financial frameworks, and support supply chain innovation. With the right support in place, a mandatory requirement to meet the 50% local, sustainable and British produce target would be a win-win for farmers and children alike."

 

Fairness in the food supply chain

The government has reiterated its commitment to strengthening supply chain fairness as a means of improving farm profitability. It confirmed that sector-specific codes will be overseen by the Agricultural Supply Chain Adjudicator-a policy first introduced under the previous Conservative government.

A new sectoral code for the pig sector will be introduced this spring, ensuring contracts clearly define expectations and limiting unfair changes. The government also stated that similar codes will be introduced for the egg and fresh produce sectors, but no timeline was provided for implementation.

Will White, sustainable farming coordinator at Sustain, said: 

 

"It’s right that the government is focusing on greater farm profitability, but its approach to supply chain fairness lacks the ambition needed to deliver real change. Existing protections for farmers are fragmented, creating loopholes that larger supply chain actors can exploit. A fair supply chain starts with a stronger, expanded Groceries Code Adjudicator- one with real power to deter unfair supermarket practices, which remain a major source of pressure on farmers.  Without strong, joined-up regulation to protect farmers and growers, they will continue to be squeezed."

 

Other policies announced

• Tenant Farmer Commissioner – The government has pledged to appoint a Tenant Farmer Commissioner to advocate for tenant farmers, ensuring their interests are represented in policymaking and tenancy issues. 
• ADOPT Fund – A new Accelerating the Development of Precision Technology (ADOPT) Fund will provide smaller scale innovation grants to trial new technology and practices, helping them improve efficiency and resilience in food production. Up to £20.6m will be available in 25/26, with competitions opening in Spring.
• Seasonal Worker Scheme extension – The visa scheme will be extended for five years, with annual quota reviews to balance workforce availability with a transition towards automation
• Investment in farm technology – £110 million will be allocated to the Farming Innovation Programme and the Farming Equipment and Technology Fund, providing research funding and grants for equipment such as electric weeders to reduce chemical use.
• Biosecurity measures – A new National Biosecurity Centre will be established at the Animal and Plant Health Agency site in Weybridge, with £200 million invested to strengthen resilience against animal disease.