News in brief:
June 2025
The stream of government announcements which impact farm and estate owners continues apace as we head towards the summer recess. While the clarity was much needed, the news has delivered yet more pause for thought for those trying to plan for the medium and long term.
Sigh of relief over spending review
Following intense speculation of potential heavy budget cuts, many are breathing a sigh of relief after Chancellor Rachel Reeves committed £7.4bn to farming, flood defences and nature recovery in June’s Spending Review. This includes £2.3bn a year through the Farming and Countryside Programme and up to £400m via additional nature schemes. Fears were spreading that the headline figure could be slashed much further than the 10% reduction that materialised. Country Land and Business Association (CLA) President Victoria Vyvyan said: “While we still need further detail, it is clear that this is a meaningful funding settlement. We now need Defra to work closely with industry to understand how to get the best bang for their buck – to further the impressive gains we have already made in nature-friendly farming. Trust and confidence have been shaken, and this is an opportunity to rebuild.”
Defra launches BNG consultation
Farmers and landowners have until 24 July to share their views on the implementation of biodiversity net gain (BNG) for minor, medium and brownfield developments. Defra’s consultation hopes to gauge opinion on options around extending exemptions, simplifying the small sites metric and increasing ease of access to the off-site market. Mark Russell, BNG Specialist at Carter Jonas, says: “The government’s consultation on BNG is a welcome moment to take stock – but it must also be seen in the context of an emerging market that is just beginning to function. We’ve been closely involved in the delivery of BNG schemes and are already seeing a growing understanding and capability across landowners, developers and local authorities alike. As such, our message is clear: refine where necessary, but don’t destabilise a system still in its infancy.” He adds that the real issue with BNG lies with the requirement for applicants to provide extensive technical detail up front. “The sheer volume of upfront information required means many developers are effectively forced into submitting full applications from the outset, even when risks remain high. A more proportionate, phased approach to BNG compliance could help unlock stalled sites without compromising ecological ambition. The BNG framework is fundamentally sound and is beginning to deliver. Let’s give it space to grow.”
Rural crime costs fall
The financial cost of UK rural crime has dropped by over 16%, according to NFU Mutual’s latest rural crime report. Coordinated crackdowns and community vigilance have delivered tangible wins against serious and organised thefts targeting the countryside, and the figures highlight the growing success of united efforts between farmers and law enforcement in tackling rural crime. Agricultural vehicle thefts fell by 35% to an estimated £7m, and while quad bikes and ATVs remain popular targets for criminals, their total theft cost dropped 16% to £2.7m. Hannah Binns, rural affairs specialist at NFU Mutual, said: “In recent years we’ve seen rural crime becoming increasingly organised, serious and persistent in nature. Although we must stay alert, it's encouraging to see that the estimated UK cost of rural crime dropped 17% to £44.1m as we continue to collaborate with industry and law enforcement to tackle this urgent issue."
Glimmers of hope for harvest
The latest AHDB Planting and Variety Survey shows a partial rebound in the UK’s wheat area, providing a glimmer of hope in an otherwise tough season. The survey, conducted between 7 April and 16 May, reveals that wheat plantings have risen 6% year-on-year to 1,623 thousand hectares. However, the total wheat area remains below the five-year average, reflecting the lingering impact of a wet start to the 2024/25 planting season in some regions. Millie Askew, AHDB Lead Analyst (Cereals & Oilseeds), said: "Growers had to fight the weather again last autumn to try to get back to their desired rotations after being forced to change the previous year, but this survey indicates it’s not been possible for everyone. The larger wheat area will help to mitigate the impact on 2025 production from the very dry spring we had this year. But there’s a lot of uncertainty over the prospects for all crops, including wheat, after such a dry spring."
Total Income from Farming figures misleading
Defra’s recently released Total Income from Farming figures show overall boosts to farm productivity, with an increase of £1.6bn from 2023 giving an overall total income of £7.7bn for the UK. However, industry experts have warned this masks significant volatility in the industry and a varied picture across different sectors. NFU President Tom Bradshaw said: “Arable farmers have been hit particularly hard due to falling global prices and extreme weather, and while some sectors like beef and sheep have recovered slightly, it comes after years of unsustainable returns. Set against historically low incomes, these modest gains are a step forward, but they are fragile. Without consistent policy support and market stability they won’t last.”