At long last: Farming included in government’s industrial strategy

• Potential for agricultural growth

• Year after Labour election victory

• Hot issues of IHT and SFI remain

The government has received rare praise from farm leaders after including agriculture in its industrial growth strategy.

The strategy forms a central pillar of the Labour government’s mission to grow the economy – with the food and drink sector already worth £146bn and supporting jobs for more than four million people.

The NFU and other farming organisations lobbied the government to include agriculture in the strategy – arguing that food and drink is a key way to help boost the national economy.

Delivery

NFU deputy president David Exwood said farming had the potential to be a key growth driver – with investment. “Since winning the election a year ago, the government has repeatedly said it wants to deliver growth.

“As the backbone of the food and drink industry – the UK’s largest manufacturing sector – farming is in a great position to contribute to this. The UK agriculture sector is world class with innovative and tech-hungry farm businesses.

“That’s why we have been pushing hard for it to be included in the industrial strategy. We already have proposals within our own blueprints for growth to support the government’s goals and intend to feed these in as part of next steps.”

Recognition of agriculture’s potential follows a tumultuous year for UK farmers – including the closure of the Sustainable Farming Incentive and the imposition of inheritance tax on farm assets over  £1m.

Significant

Those issues have not gone away – and the NFU says it will continue to hold the government’s feet to the fire. But the inclusion of farming in the industrial strategy is significant nonetheless.

Mr Exwood said: “This focus on agri-tech should help farming businesses become more productive, sustainable and resilient.

“Ultimately deliver even more for the British people and the government’s growth ambition.”

Having agri-tech and precision breeding technology as areas of focus within the growth sector plan meant there should be greater opportunities for farmers and growers to contribute to the government’s growth agenda, said Mr Exwood.

It could also increase the sector’s ability to create jobs, reduce greenhouse gas emissions, boost productivity and drive investment in sustainable food, fibre and energy production, he added.

Promise with a note of caution, says agri-tech expert

Being included in the growth plan is good for agriculture – but agri-tech expert Belinda Clarke of AgriTechE has voiced a note of caution.

“It is of course fantastic to see the government’s recognition of the impact that agri-tech has had to date – and recognition of its future potential.”

Its inclusion in the industrial strategy is the result of many months of work by unsung heroes behind the scenes, putting forward the business case for agri-tech’s place amongst other key sectors.

Change needed

“This is a huge opportunity – but things have to change,” says Dr Clarke. There is much success to celebrate, but there is also some fatigue and even disillusionment over certain initiatives in the UK agri-tech community that haven’t delivered on original ambitions, she adds.

Displacement of existing commercial entities by mis-aligned public funding has also been a risk, warns Dr Clarke. Change is needed and the strategy is an opportunity to do things differently, reflecting a “new world order” and building on past success.

The ultimate aim – for agri-tech at least – is to achieve a sector turnover of at least £20 billion by 2035, suggests Dr Clarke. This is an increase from – £13 bn achieved back in 2023.

“Success will be achieved by companies spending more on R&D, increasing their productivity, scaling and exporting. When it comes to government success, the metrics are everything. Let’s give them something to count on.”