The Sustainable Food Summit, Yorkshire 2025

The first Sustainable Food Summit was convened by Rural Policy Group in the picturesque town of Harrogate, on the eve of the Great Yorkshire Show, to discuss growth and profitability in the food value chain. Designed to defy the criticism which plagues many initiatives to improve the sustainability of the UK’s food supply, RPG ensured the Sustainable Food Summit was uniquely farmer-led.

To foster the spirit of openness and collaboration between actors across the supply chain and prominent farming and business bodies, the discussion was held under Chatham House rules and chaired by Rural Group President Mark Lumsdon-Taylor.

Briefing Note from the Sustainable Food Summit

On 7 July, Rural Policy Group convened the Sustainable Food Summit of farmers and business organisations representing 645,000 actors in the food value chain and wider economy to discuss how to unlock private investment for a more sustainable food supply.

The summit was uniquely farmer-led while enjoying the benefits of vertical collaboration through the supply chain. Nine of the 15 delegates were actively farming and most were doing so alongside other professional responsibilities to the food industry.

Many of the themes discussed dovetail with the Government’s Good Food Cycle paper published on 15 July: the need for a clear vision for British food; food security as a key element of national security; building resilience into supply chains and the recognition of agriculture’s contribution to a healthy population.

Some of the recommendations will not surprise. The need to rebalance high costs and low returns. The need to bring agriculture in from the periphery of national policy concerns. On the other hand, an enthusiasm for Brand Britain and a vision for modern farming which embraces export opportunities is sweeping the industry, and it is keen to work with partners in government to develop these ideas as a means of reviving profitability, profit and growth.

We set out below a summary list of constraints to private investment and recommendations.

Know who farms

Farming suffers from a dogma about who farms; an outdated image of a landowning elite. In reality, farm businesses are often cash poor, highly geared and farmers work long hours for little reward. This misconception fuels public acceptance of farmers receiving below the cost of production for their produce. It also has the potential to unwittingly influence policy design.

The focus should be on what farm businesses are producing and their contribution to society. Food security grounded in domestic production delivers a framework of benefits: more stable pricing; guaranteed supply; ecological gains; community cohesion

.We need farmers to achieve food security – understanding them and their businesses is the first step to designing policies which stimulate investment.

Plan for the long-term

Directors of agricultural businesses lack confidence around how and where to invest. The short-term approach to policy initiatives, reversals and changes of direction which accompany changes of government has eroded the sense of clarity and stability directors need to finance new technologies, people, innovations and behaviours.

Policy initiatives with a longer lifespan are more effective at stimulating the much-needed investment in efficiency and productivity as they are better equipped to inform investment decisions, which often have multi-year payback periods, and can give certainty that the technologies, talent or behavioural changes will deliver a return to the business before it becomes misaligned with newer policy and regulatory priorities.

Embrace the foundational importance of agriculture

The importance of agriculture to our national brand and economic growth is often underestimated. The relatively small £11bn size of the industry obscures its much larger impact on communities, environment and economy. Agriculture powers the productivity of the whole economy via its impact on public health, management of natural resources and contribution to clean energy (70% of solar panels are on agricultural land).

Farming needs to be brought in from the periphery of policymaking and accorded an importance which equates to the importance of all its contributions to health, environment and energy supply. The benefits of a thriving agriculture sector are so pervasive that departmental approaches may not fully realise its power. A ‘whole front bench’ approach could be better suited to unlocking the potential of farming and creating an environment in which directors are confident to invest.

Address supply chain fairness

The consumer base is accustomed to extremely affordable food. According to Euromonitor, in 2020 the UK ranked 3^rd out of 110 countries with people typically spending just 8% of their income on food. Only the US and Singapore spend less on food as a percentage of income. This expectation has led to intense price competition which jeopardises food security when producers routinely take prices below the cost of production.

Farmers recognise that the culture of cheap food coupled with recent high levels of inflation make it difficult for policymakers to support a revaluation of food prices. However, while profits are low at all stages of the food value chain, there is scope to review margin shares and contract terms through regulatory means without passing on price increases to the consumer. The Groceries Code Adjudicator is one such body which could be imbued with additional powers.

Equally, a programme of consumer education is important to help an increasingly urban population reconnect with food and appreciate the effort, time and risk associated with producing it. Most consumers are unaware that food pricing is unsustainable for many farm businesses and that we are seeing a contraction in the industry which will leave them more food insecure and more vulnerable to price instability over the longer term.

Fair returns to facilitate investment in the food supply is how we protect the public’s access to good food for now and generations to come.

Commercialise Britain’s high standards

The government’s most recent statistics demonstrate that the median farm generates a -0.8% return on capital. British farmers sell on the commodity market for the global price – which is delinked from the UK’s higher energy prices, minimum wage and generous employment rights and the costs of adhering to some of the highest environmental and animal welfare standards in the world. It is also one of very few developed countries which does not have a land-based payment to subsidise food.

British agriculture needs to monetise its high standards; to attract a premium price for its premium produce. The industry is increasingly keen to look towards exports and the development of Brand Britain as a route to profitability as overseas markets are often prepared to pay higher prices than can be achieved in the UK.

However, the industry needs support to enter new markets. Trade agreements which champion British food, frictionless trade, advice on how to complete paperwork and interpret regulations and marketing British produce to a global audience. Above all, a vision which inspires and excites farm businesses into action.

Help farmers to maintain the affordability of food

British farmers offset low margins in their core food production businesses with diversified income streams from clean energy, dog walking fields, food and drink processing, on-farm retail, tourism etc.

Another way farm businesses have been able to work around low returns is by leveraging asset appreciation. The agricultural property relief (APR) and business property relief (BPR) reforms have prompted many to reconsider this fine balance on both points. The proposals in their current form are inhibiting growth and anecdotally, much needed investments in efficiency and productivity are being cancelled or postponed. The ultimate design of the tax legislation may also influence the diversification opportunities open to farmers if they are encouraged to shy away from capital intensive start-ups or adding value to land and buildings.

Ongoing dialogue with family farm businesses to refine how the tax is implemented is essential to ensure farms can meet their liabilities while maintaining the integrity of the business. There are ways of modernising APR and BPR which don’t link investment potential to the life-stage and health of farm directors.

A more radical recommendation is to divorce HM Treasury from government to create an independent public institution akin to the Bank of England, to have complex tax decisions made by tax professionals.

Develop a vision for a modern agriculture

We need a vision for British agriculture – and we need government to have a vision for agriculture which harnesses its potential for domestic benefit and on the global stage.

A vision which takes a holistic view of what is modern farming. At its core, it is food production. But most farms contribute much more broadly to society through the creation and management of habitats and supplies of clean energy and fuels.

While every farm adds value to its community, 8% of farms produce 50% of output on a third of agricultural land. Part of a vision for agriculture would need to address pockets of inefficiency and low performance so UK plc can align agriculture with alternative land use priorities. The vision would need to consider exit strategies for farmers at the helm of unviable businesses. There are instances where it would cost tenant farmers more to move into a small, rented property than to renew the lease on their farm. Farmers must be able to afford to leave the industry in order to make that decision.

While concentration in the industry would drive profitability and efficiency through economies of scale, it also weakens food security in terms of resistance to disease as outbreaks spread more quickly. As ever with agriculture, there is a delicate balance between private enterprise, market forces and the public’s right to good quality food.

Improve infrastructure

Energy: persistent high energy prices are eating away at profitability and the ability to invest. Coupled pricing for electricity and gas is a major problem for energy pricing. The summit supports proposals for decoupling to reduce energy prices and free up funds for investing in productivity and efficiency.

Water management: flooding and unseasonal dry weather are a major concern and upgrading water infrastructure to manage increasingly erratic and unseasonal weather is vital to de-risk the investment in planting a crop, prevent food shortages from crop loss and help maintain stable food prices. A farm which routinely experiences the effects of old or mismanaged water infrastructure, such as flooding, will be more likely to see investment as too high risk.

A relatively recent proposal to build two reservoirs has a development timeline of 26 years. 22 of those were for planning and permits. This suggests the planning system needs an urgent review to improve its responsiveness to the need for better water management. It is also an opportunity to look at our approach to designing water management systems and processes.

Taken together these infrastructure improvements would release cash and de-risk investment.

Stand united

The UK’s maritime climate has created a diverse agricultural industry. However, the heterogeneity of output which builds resilience into the food system has also created divisions along regional and sectoral lines, and the collective voice of agriculture falls short of promoting British food and educating stakeholders about its exceptional talent, standards and produce.

The development of a new vision is an opportunity for the industry to emerge from silos and unite to effect change. It is also an opportunity for a united front bench to explore modern farming and how to harness its full potential to achieve government goals.

Discussions around farming and farmland cannot be contained within one department. Cross-departmental engagement is more suited to exploring the uniquely broad set of benefits farming is poised to deliver for the NHS, net zero, circular rural economies, workforce productivity, national security, the creation of good jobs, nature recovery and much more.