December’s agricultural news was dominated by UK Government announcements. Firstly, the increased thresholds for the Family Farm Tax and secondly the release of Baroness Batters’ long-awaited Farm Profitability Review. Receiving far less public attention was a third announcement – that the government had officially shelved its UK-specific COP30 pledge to cut methane emissions from livestock by 30% by 2030. The month also saw controversy, with the seizure of UK lamb exports bound for France. And as the year drew to a close, the Farmers Weekly annual Sentiment Survey surprising revealed an increase in the number of farm businesses that had experienced a “good year”.
Family Farm Tax concessions announced
Farmer-led protests returned to Westminster on 16 December to coincide with the second reading of the Finance Bill in parliament. While opposition MPs were again able to voice their discontent over inheritance tax on farm assets, no vote was taken and amendments weren’t expected until the committee stage next year. However, significant revisions to the planned inheritance tax (IHT) reforms for family farms were then announced on December 23rd, increasing the threshold for 100% relief from £1 million to £2.5 million per individual. After a year of campaigning ‘To Save Britain’s Family Farms’, the Farmer’s Guardian were quick to call the climbdown a pre-Christmas ‘Miracle’.
Making the announcement, Environment Secretary Emma Reynolds said: “We have listened closely to farmers across the country and we are making changes today to protect more ordinary family farms. It’s only right that larger estates contribute more, while we back the farms and trading businesses that are the backbone of Britain’s rural communities.” she said.
Head of the National Farmers’ Union Tom Bradshaw welcomed the change, telling BBC Radio 5 Live it “takes out many family farms from the eye of a pernicious storm”. Whilst Gavin Lane, president of the Country Land and Business Association, gave the government credit “for recognising the flaws in the original policy and changing course.”
As we begin 2026, some MPs, the NFU and other farming organisations say they will continue to press for a complete reversal of the proposed changes, arguing they still threaten the viability of multi-generational family farms.
British lamb seized in France
A standoff took place in Calais in December after four refrigerated lorries carrying £650,000 worth of British lamb were seized by French border authorities for alleged wool contamination. The incident raised concerns about post-Brexit trade barriers and inconsistent enforcement of regulations.
The lorries were eventually cleared to return to the UK after inspections found no contamination issues. However, the delay resulted in significant costs for exporters and highlighted ongoing challenges in the UK-EU trading relationship for agricultural products. Industry bodies called for clearer protocols to prevent similar incidents in future.
Farm Profitability Review submitted
In early December, Baroness Minette Batters submitted her long-awaited, 155-page Farm Profitability Review to Defra, delivering 57 recommendations to help to strengthen the resilience and viability of farm businesses. The review represents six months of consultation with farmers, industry bodies and supply chain representatives. Key themes include improving access to finance, addressing unfair trading practices in supply chains, and ensuring agricultural policy delivers genuine business viability alongside environmental outcomes.
The review highlights the sector’s potential to play a central role in the renewal of the country’s economy and Baroness Batters also makes clear the need for government to work in genuine partnership with farmers and the wider food industry. In response to the review the government has promised to strengthen the voice of farmers at the heart of government and announced the creation of a new Farming and Food Partnership Board, which she will oversee with Farming Minister, Dame Angela Eagle. The objective of the board will be to strengthen food production at home, seize opportunities for growth and ensure policy delivers real change for farmers.
You can read more about the Farming and Food Board in The Inside Track.
Government officially shelves methane pledge
After weeks of speculation, and in a move that received relatively little public attention, the government published its response to the ‘Lord’s Environment and Climate Change Committee Report on Methane Emissions’. In doing so it appeared to quietly shelve its proposals to announce a UK-specific pledge at the COP30 climate summit to cut methane emissions from livestock by 30% by 2030. Andrew Loftus, chairman of the Beef and Lamb Environment Roadmap, a cross-sector group supporting the industry’s steps towards net zero, had previously said the move would be a “disaster” without a change to the way emissions are measured, and would likely have required a 30% cut in total ruminant numbers.
The decision comes despite ongoing pressure from environmental groups, although the Report acknowledges the transition to a low-carbon future is vital, including equivalent reductions in methane and other greenhouse gases. Among the Report recommendations were the continued support of the exciting Dairy Demonstrator Project, which will test the impacts of novel and existing greenhouse gas mitigation measures. It also committed the government to leading an open and honest conversation with the sector and supermarkets about how the cost of reducing emissions should be shared and not burden farmers or consumers unfairly.
Sentiment Survey reveals a more prosperous 2025
Given the lack of confidence surrounding agriculture right now, it was possibly a surprise to read that more farm businesses have enjoyed a relatively prosperous 2025 than in the preceding 12 months. In answer to the question “How has the year been for your farming business” in the Farmers’ Weekly’s annual Sentiment Survey, 23% of respondents said it had been either “good” or “great” – up 10% on the answers given in 2024. However, the Farmers’ Weekly also points out this is still a very long way from 2022, when over 50% of all respondents were upbeat in the wake of the commodity spike triggered by the Russia-Ukraine war.
Sources
Family Farm Tax concessions announced
https://www.bbc.co.uk/news/articles/c8e9n3y28g1o
British lamb seized https://www.fwi.co.uk/news/uk-lamb-load-cleared-to-return-after-french-blockade
Farm Profitability Review submitted
https://www.fwi.co.uk/business/farm-policy/farm-profitability-review-submitted-to-defra
https://defrafarming.blog.gov.uk/2025/12/18/farming-profitability-review-recommendations-published/
Government officially shelves methane pledge
https://www.fwi.co.uk/news/environment/lucky-escape-as-government-shelves-cop30-methane-pledge
Sentiment Survey reveals a more positive 2025
Survey https://www.fwi.co.uk/news/fw-survey-2025-a-year-of-improvement-for-some
