Five farming battles set to dominate Back British Farming Day

Back British Farming Day returns to Westminster on Wednesday at a time when many farmers are asking for more than symbolic support.

MPs and peers are expected to wear the NFU’s familiar wheatsheaf pin badges as the industry highlights its contribution to food security, the economy and the countryside.

But behind the annual show of support, farm businesses are facing a much tougher set of questions over drought losses, inheritance tax, import standards, access to environmental schemes and falling profitability.

As ministers and MPs prepare to mark the 11th annual Back British Farming Day on 9 September, FarmingUK looks at five issues likely to dominate the conversation.

Drought support and the growing cashflow squeeze

Despite significant rainfall towards the end of August, the effects of this year’s drought are far from over for many farming businesses.

Ten areas of England remain in drought, while national reservoir storage stood at just 58% at the start of September.

Wheat and spring barley yields have been reported below their five-year national averages, while livestock farmers have been forced to draw on winter forage reserves after prolonged dry weather restricted grass growth.

Hundreds of abstraction restrictions also remain in place, including formal measures affecting farms in parts of East Anglia.

The government announced an additional £65m of support in August through a reprioritisation of Defra’s farming budget, alongside temporary environmental scheme flexibilities and changes designed to make water sharing and abstraction licence variations easier.

But farming organisations argue that the immediate concern for many businesses is now cashflow.

The NFU is calling for a short-term Keep British Growing Loan to provide working capital, alongside a fallen stock scheme aimed at reducing disposal costs for livestock businesses.

Drought losses have arrived on top of elevated fuel, fertiliser and energy costs, leaving some farmers needing to find money for autumn drilling, livestock feed and other inputs needed to keep production going into 2027.

For farmers, the question is increasingly whether current support will arrive quickly enough to help otherwise viable businesses through the months ahead.

Inheritance tax remains a major political fault line

Changes to Agricultural Property Relief and Business Property Relief have now been in force for five months, but inheritance tax remains one of the most politically contentious issues facing the industry.

Since 6 April, the value of qualifying agricultural and business property receiving 100% relief has been capped at £2.5m per person.

Assets above that level receive 50% relief, giving an effective inheritance tax rate of up to 20% on the excess. Unused allowances can be transferred between spouses or civil partners, potentially allowing a combined £5m threshold.

Ministers have argued that the majority of farming estates will not face additional inheritance tax liabilities under the changes.

The NFU, however, continues to warn that some family farms could still face substantial bills despite holding relatively little disposable cash.

Farming groups also fear the policy could discourage long-term investment, complicate succession planning and force some families to consider selling land or other assets to meet future liabilities.

Although the government increased the threshold from its original proposal, the dispute has not gone away.

Back British Farming Day will provide another opportunity for MPs to demonstrate whether pressure remains inside parliament for further changes.

Brazilian meat imports raise questions over a level playing field

Trade and food import standards are also likely to feature prominently in discussions with politicians.

From 3 September, Brazil ceased to be authorised to export most beef, poultry and other products of animal origin to the European Union after failing to demonstrate compliance with new EU rules covering antimicrobial use.

Those rules restrict the use of antimicrobials for growth promotion or increased yield and apply in Northern Ireland under post-Brexit arrangements.

They do not automatically apply in Great Britain, where Brazilian products can continue to enter the market provided they meet existing GB import requirements.

The NFU, NFU Cymru, NFU Scotland and Ulster Farmers’ Union have called for equivalent restrictions, arguing that British producers should not be expected to meet standards that imported food can avoid.

There are also concerns that beef and poultry which might previously have been destined for European markets could instead be redirected towards Great Britain.

For farming groups, the argument goes beyond Brazil.

They want the government to demonstrate that future trade policy will not expose British farmers to competition from food produced under standards that would not be permitted at home.

The issue cuts directly into wider concerns over profitability, food security and the value placed on domestic production.

Farmers want certainty over SFI

The Sustainable Farming Incentive remains an important source of potential income for farm businesses, but uncertainty over access to the scheme continues to frustrate the sector.

The first SFI26 application window closed on 28 August after initially being targeted at smaller farms and businesses without an existing Environmental Land Management revenue agreement.

A second window is expected to open on 22 September and will widen eligibility to qualifying farmers and land managers.

However, Defra has said there will be no fixed closure date, with the window instead depending on demand and how quickly available funding is committed.

That has raised concerns that businesses could once again face a race to secure access.

The NFU has welcomed the broader eligibility but wants all qualifying businesses looking to participate this autumn to have a realistic opportunity to apply.

It is also calling for greater certainty over SFI27 and future access to Countryside Stewardship Higher Tier.

For farmers making decisions about rotations, habitat management, capital investment and long-term environmental work, the issue is increasingly one of predictability.

As direct payments continue to fall away, environmental schemes are becoming a more important part of farm income.

Without confidence over when schemes will open, how long funding will remain available and what future offers will look like, businesses can struggle to make decisions several years ahead.

The bigger question: can farming remain profitable?

Underlying all of these issues is a more fundamental concern: whether farmers can make enough money from producing food to maintain viable businesses.

The latest official figures underline how uneven the financial picture has become across agriculture.

Average Farm Business Income on cereal farms in England is forecast to fall by around two-thirds to just £17,000 in 2025/26.

General cropping farms are forecast to see average income halve to £54,000, while specialist pig farms and mixed farms are also expected to see substantial falls.

Dairy and lowland grazing livestock farms are among the exceptions, with average incomes forecast to rise.

For many arable businesses in particular, the combination of weaker returns, high input costs and difficult weather has intensified questions over the economics of food production.

The government has acknowledged the challenge through Baroness Minette Batters’ independent Farming Profitability Review, which produced 57 recommendations covering areas such as supply chains, planning, access to finance, investment, skills and new markets.

Ministers published their response in June, but the farming industry is now looking for evidence that those commitments will translate into stronger margins at farm level.

The NFU has repeatedly argued that profitable domestic agriculture is central to food security.

It wants fairer supply chains, greater market transparency, incentives for investment and trade arrangements that allow British farmers to compete on a level playing field.

Without sustainable returns, farming groups warn that businesses will find it increasingly difficult to invest, manage environmental improvements or withstand another year of extreme weather.

More than a show of support

Back British Farming Day has traditionally given politicians an opportunity to publicly demonstrate their support for agriculture.

This year, however, the wheatsheaf badges will be worn against a much tougher economic and political backdrop.

From drought-hit businesses needing immediate cashflow to longer-term battles over taxation, trade, environmental schemes and farm profitability, the sector is looking for more than supportive words.

For farmers, the real measure of Back British Farming Day will be what follows it — and whether decisions taken in Westminster make producing British food a viable business for the years ahead.