Recently, I attended the AIC Conference with RDP, where we were proud to be a gold sponsor. It was an exceptionally informative day featuring a range of knowledgeable and influential speakers covering a broad spectrum of topics—from government, policy and trade to artificial intelligence and the future of agriculture.
While many points resonated with me, one contribution in particular has stayed firmly in my mind: Baroness Minette Batters’ stark warning that the next two years will be critical in determining the future direction of the agricultural sector.
Batters has recently concluded her Farm Profitability Review, commissioned by former Defra Minister Steve Reed. Although she was unable to share the full findings, she highlighted one sobering statistic: 65% of UK farming output is currently unprofitable without BPS or SFI support. Also concerning is that only 7% of farmers fully understand ELMs.
She also called for greater use of UK-grown food and feed ingredients to drive national economic growth. And among the 57 recommendations in her review, her first plea to government was clear: reframe the value placed on farming as a whole.
At present, agriculture accounts for just 0.6% of the UK’s GDP. But Baroness Minette urged policymakers to look at countries such as New Zealand, where agriculture’s broader value is better understood and more accurately represented. Robert Sheasby, AIC Chief Executive, called for the government to be ambitious and to share a desire to grow UK agriculture from 0.6% to 1% of GDP.
This led me to ask a fundamental question: What represents the true value of agriculture?
Looking Beyond the Headline Figures
In New Zealand, agriculture’s direct contribution to GDP typically sits around 6–7%. But even this headline figure captures only a fraction of the sector’s real economic significance. It reflects value added at the farm gate by primary agricultural production such as farming, horticulture and forestry.
The true weight of agriculture becomes clear only when you look downstream at the industries it powers, well beyond the farm.
The food processing sector—including dairy, meat, fruit and vegetable processing—relies entirely on agricultural output. So too do the transport and logistics industries, which move goods locally, nationally and internationally.
The manufacturing sector benefits through the production of essential inputs such as agricultural machinery, fertilisers and equipment. The retail sector depends on a steady supply of high-quality domestic food. Even tourism draws heavily on New Zealand’s landscapes, rural culture and food identity.
When these indirect and induced contributions are taken into account, agriculture’s impact far exceeds the direct GDP number—revealing a sector that underpins a substantial proportion of national economic activity.
Conclusion: Why Reframing Agriculture Matters Now
When viewed through this wider economic lens, it becomes clear that agriculture is far more than a line on a GDP balance sheet. It is a foundational sector—one that fuels supply chains, supports rural communities, anchors our food security, and contributes to the identity and resilience of a nation.
If countries like New Zealand can quantify and communicate this broader value, it raises an important question: why isn’t the UK doing the same?
With 65% of UK farm output currently unprofitable without support, the sector stands at a pivotal moment. Baroness Minette’s warning that the next two years are critical should not be dismissed as rhetoric but recognised as a call to action. Government should act swiftly on her recently submitted Farm Profitability Review. Also take on board Batters warning that the UK faces a “moment of truth” on land use: “We cannot continue with competing demands on land without a coherent, long-term plan.”
Reframing the value of farming means viewing agriculture as a strategic investment in national prosperity. It means elevating food production, land management and rural enterprise to the level of national importance they deserve. And it means ensuring our policies, trade decisions and support schemes align with the long-term sustainability of UK farming.
If we are to secure a resilient, productive and competitive agricultural sector, we must begin by recognising its true value—not only in economic terms, but in environmental, social and national terms too. Only then can we create the conditions that allow UK agriculture to thrive in the years ahead.
Sources:
Agri-trader, Issue 41
https://iere.org/how-much-of-new-zealands-economy-is-agriculture/
