This Week in Farming: Curtailed confidence and spring seeds

Happy New Year and welcome to 2025’s first This Week in Farming, Farmers Weekly’s regular round-up of the biggest farming stories from the past seven days.

Starting the year on a cheery note, a number of familiar farming faces were recognised in the New Year Honours list, including former NFU dairy chairman Michael Oakes, Northamptonshire arable farmer Duncan Farrington and Defra permanent secretary Tamara Finkelstein.

Now to the news…

Doom and gloom

Hitting the headlines this week was FW’s own annual Sentiment Survey, which found that confidence in the future of farming had been shattered following Labour’s Autumn Budget that included controversial changes to inheritance tax (IHT).

The survey was conducted either side of the Budget, with 44% of respondents before the announcement already feeling either “pessimistic” or “very pessimistic” about their business prospects.

This figure then shot up to 61% for those who responded after the chancellor’s Budget speech.

Chief reporter Philip Case outlined some of the challenges the Labour government faces in response to its proposed IHT policy, which NFU president Tom Bradshaw recently described as a “betrayal”.

The first real test will be next week, when Defra secretary Steve Reed faces the wrath of farmers first-hand as he takes centre stage at the Oxford Farming Conference.

On New Year’s Eve, ‘beacons of hope’ were lit on farms around the UK to protest the government’s IHT plans.

Further action is planned, with the four farming unions holding a national “day of unity” on 25 January, as a response to the government’s proposals.

Market outlook

In this week’s magazine, consultancy firm Andersons provides a detailed insight into how each of the agricultural sectors could fare for the year ahead.

Further contraction in the beef, sheep and dairy sectors will set some alarm bells ringing, both on-farm and within the wider supply chain.

However, livestock prices generally look to be starting the year on a high.

Farmers Weekly editor Andrew Meredith makes the case in this week’s leader that, given current high farmgate prices, there will be some farm businesses out there with a more positive mindset who will be looking to capitalise on new opportunities as others exit.

In the Markets section, better returns in the potato sector will be welcomed by growers. However, higher energy and labour costs could put a lid on any bumper profits.

There may also be light at the end of the tunnel for arable farmers, with industry forecasts suggesting wheat prices could potentially top £200/t this spring, if market conditions are right.

Spring seed special

The Arable desk, in partnership with Andersons, has been hard at work pulling together in-depth analysis of how the different spring cropping options compare and which Sustainable Farming Incentive (SFI) options could be available.

Meanwhile, arable writer extraordinaire Mike Abram has taken a look at whether soya bean crops could have a future in the UK.

In it to win it

The winners of FW’s annual photography competition have been announced, with Shropshire farmer Steve Barnes taking the top spot and a £300 prize for his photo of the sun rising behind a plough.

However, there is more cash up for grabs, with entries open until 24 January for this year’s Farm Inventions Competition.

Listen to the podcast

Don’t forget to also tune into the FW podcast with Johann Tasker and Louise Impey, this week previewing the Oxford Farming Conference and discussing prospects for farming in 2025.

You’ll find it anywhere you listen to podcasts, or free to listen to on our website.