Steve Reed: 'We are looking at regenerative agriculture to shape the future of British farming'

Image Credit: UK Parliament

Some farms in England may soon stop producing food altogether, according to new proposals laid out by Environment Secretary Steve Reed. Speaking at the Groundswell farming festival in Hertfordshire, Reed outlined a shift in farming subsidies and land use policy that could have significant implications for upland farmers across the country.

The government’s post-Brexit revamp of farming subsidies is designed to focus food production in the most fertile and efficient areas. But in the less productive regions, particularly upland farms, support may be scaled back or removed entirely. That could leave many of these farms struggling to survive, as they're some of the most dependent on public payments.

He said his land use framework “envisions taking some of the least productive land out of food production, but supporting the more productive land to increase production”.

Reed said this was so “you maintain outputs, or even increase outputs while increasing the space for nature. We have a limited amount of land in this country for the many demands we make of it for food production, housing, energy and for nature, and we need to make sure that we are using it optimally for all of those outcomes.”

Under the new plans, landowners may either lose subsidies altogether or be offered financial incentives to remove their land from food production and repurpose it, perhaps as wildflower meadows or restored peatlands. The goal? Create more space for nature, even if that means reducing the UK’s overall farmed area.

Reed told Groundswell there would be “no compulsion” under the land use framework but that “it would seem odd if the [land use data] didn’t then help at least inform the way that farming budgets were allocated”.

He said communities would be supported through the transition: “I grew up in the 80s, and the Thatcher government at the time destroyed the industry that my entire family worked in, and nothing was put in place. So those communities were destroyed, and one of the reasons I got involved in politics was to make sure that can’t happen again.”

These policy shifts are part of a broader strategy to reimagine the use of farmland in response to climate change and biodiversity loss. Reed also announced that a £150 million fund would reopen to support farmers in new ways — from wildfire prevention and educational outreach to more environmentally sound slurry storage. Starting next year, farmers will even be paid to dig ponds, which can help store water and improve local biodiversity.

However, the changes don’t end there. The government is also overhauling the current nature-focused farming scheme. This program, created by the previous Conservative government, rewarded farmers for environmental stewardship — planting hedgerows, leaving wildflower strips, cutting pesticide use, and more. The idea was to pay for ecological benefits, not just the number of acres farmed.

But that initiative is now facing a budget cut. The spending review revealed that funding would drop by an average of £100 million annually through 2029.

Reed said the scheme would be simplified, adding: “We need to return firmly to the principle of public money for public goods. Our reformed SFI [Sustainable Farming Incentive] will maximise benefits for the environment, particularly in terms of water quality and biodiversity, allowing us to clean up our polluted rivers, welcome wildlife back to farms, and strengthen the natural foundations vital to sustainable food production. We will simplify the SFI and support farmers to take on packages of actions, which, when they’re done together, achieve more for nature.”

Combined with other shifts, the mood among many farmers has soured in recent months. The Labour government’s policies have sparked protests, most notably over a new inheritance tax on agricultural land.

In a recent misstep, the Department for Environment, Food and Rural Affairs (Defra) abruptly closed applications for the Sustainable Farming Incentive scheme, leaving many farmers unprepared. Following threats of legal action, the government reversed its decision and reopened the program.

Meanwhile, farmers are also battling challenges beyond policy. Extreme weather has been hitting the sector hard. Droughts and floods have become more frequent and intense, and this year’s dry spell is expected to take a serious toll. Some arable farmers are predicting crop losses of up to 50 per cent. Livestock farmers, already struggling, fear they won’t have enough grass to feed their animals through the season.

Reed acknowledged these difficulties and said, “I think there have been challenges along the way. I know early on, the announcements that were made around inheritance tax were difficult for the sector. I know that.”