Frontier Agriculture has reported a sharp fall in profits, with operating earnings more than halving during what the business described as one of the toughest years on record for UK farming.
The arable supplier and grain marketer has published its annual report and accounts for the year ending 26 June 2025, revealing the impact of extreme weather, regulatory change and historically low grain prices across its operations.
Group turnover slipped to £1.72bn, down from £1.76bn the previous year, while operating profit fell to £14.2m compared with £37.0m in 2024. Profit after tax dropped to £7.7m, from £32.8m a year earlier.
Frontier said prolonged pressure on farm incomes and volatile markets affected volumes and margins across both its crop inputs and grain marketing businesses, reflecting conditions faced by growers across the arable sector.
Against that backdrop, the company has set out changes to how the business will operate, following a review of the UK arable supply chain carried out in 2023 and 2024.
The report also marks 20 years since Frontier was formed, during which time it has grown into a major player in crop production and grain marketing.
The business said its response to current market conditions includes a shift towards a customer-first operating model, increased use of digital tools and changes aimed at simplifying how farmers do business with the company.
During the year, Frontier invested £26.8m in capital projects, including its highest level of spending on technology to date.
It said this investment is intended to support farmers through improved analytics, on-farm trials and product development, alongside measures designed to strengthen supply chain resilience.
Examples highlighted include work to support regenerative farming through commercial partnerships, new financial risk management tools for oilseed rape growers, and the use of more than 13,000 replicated trial plots to assess crop performance.
Frontier also pointed to progress on sustainability commitments, including emissions reduction targets aligned with the Science Based Targets initiative, and continued involvement in wider industry discussions on farm income and environmental delivery.
Commenting on the results, group managing director Diana Overton said: “2025 was one of the toughest years for our sector and our business and followed an equally challenging 2024.”
She said that “extreme weather, regulatory changes and global market volatility negatively impacted farm incomes and grain prices”, adding that this was reflected in the significant fall in operating profit.
Overton said the figures “reinforce the transformation we must make to better meet our customers’ needs and continue to invest in our industry”.
She added: “Our transformation plan is well underway, supported by record investment in technology and a refreshed operating model that puts customers first.”
While Frontier said the changes are designed to stabilise the business and support long-term growth, trading conditions across the arable sector remain challenging, with ongoing uncertainty around weather, regulation and market returns heading into the next season.
