These challenges include changes to inheritance tax, extreme weather conditions, and the complexities of trade post-Brexit. Despite these pressures, there are new and innovative approaches, along with policy reforms, that offer some hope for the sector. Below, we briefly outline some of these challenges and opportunities to provide a clearer picture of what UK farmers are dealing with.

Weather Extremes

Recent years have seen the UK’s agriculture sector increasingly impacted by extreme weather events. The period between 2023 and 2024 was marked by the wettest 18 months on record, leading to waterlogged soils and significant reductions in crop yields. Whilst the rain has started to fall again, the spring of 2025 has been the driest on record, resulting in poor grass growth and spring crops not establishing as they should. Farmers are urging the government to implement a strategic plan to bolster food security in the face of escalating climate risks.

Imports and Exports

The UK’s departure from the European Union has introduced new trade barriers, particularly affecting the import and export of fresh produce. New border checks have led to increased costs, delays, and logistical challenges for produce sellers and growers. These complications have not only reduced consumer choice, but also posed risks to the country’s food security. Industry groups have called for urgent government action to address these issues and streamline the border control processes.

Labour Shortages

Labour shortages continue to plague the UK’s agricultural sector, in particular impacting the timely harvesting and processing of fruits and vegetables. The combination of reduced seasonal migrant labour and domestic workforce shortages has strained the supply chain, leading to increased reliance on imports and potential food waste. Addressing this issue requires comprehensive labour policies and incentives to attract and retain workers in the agricultural industry.​

Sustainable Farming Grants

The Sustainable Farming Incentive (SFI) was introduced to reward farmers for adopting eco-friendly practices like improving soil health and boosting biodiversity. However, in March 2025, the scheme was paused after its budget was fully allocated, leaving many farmers who had begun implementing changes in limbo. The government plans to relaunch a revised version of the SFI in summer 2025, potentially with a more targeted approach. However, the sudden pause (without notice) has sparked concern across the farming community over the ongoing availability of grant support. While the goal remains to support sustainable land management, the recent disruption highlights the need for consistent and reliable policies to help farmers plan for the future.

Changes to Inheritance Tax Relief

From April 2026, Agricultural Property Relief and Business Property Relief rules are set to change drastically, potentially resulting in huge inheritance tax bills that are unaffordable to pay out of modest (or non-existent) farm profits. Whilst some farming businesses will be able to plan and adapt to mitigate the impact, many will not. This could make succession unviable for some and result in pressure to sell land to foot the tax bill.

Technological Innovations

Technological advancements are playing a crucial role in strengthening the UK’s supply chain for agricultural produce. Some farming companies are utilising satellite-based crop health monitoring and blockchain-based traceability solutions to optimise yields and enhance transparency. These technologies enable farmers to make informed decisions, reduce resource wastage, and build consumer trust through verified sourcing information. These innovations come at a cost which won’t be viable for smaller producers without collaboration.

Embracing Local

British consumers are increasingly prioritising sustainability and local sourcing in their food choices. A significant number prefer British ingredients, associating them with freshness and environmental responsibility. This shift in consumer behaviour presents an opportunity for local producers and suppliers to cater to the growing demand for ethically sourced and environmentally friendly produce.

To summarise, as our farming industry faces a complex landscape of environmental and economic challenges, adopting sustainable farming practices, embracing innovation, and focusing on local sourcing can enhance resilience and secure its future. Collaboration among farmers, policymakers, and consumers is crucial to driving this transformation and ensuring a stable, sustainable food supply for the nation.