Agricultural policy review 2025: Key changes and what to expect in 2026
2025 was a year of sharp turns and shifting signals for agricultural policy in England and Wales. From the surprise pause to the Sustainable Farming Incentive and a mid-year Spending Review that re-profiled rural budgets (while somehow entirely failing to mention DEFRA or agriculture) to an autumn Budget that did less than many expected, the policy tempo rarely eased. All the while, the sector has awaited the Farm Profitability Review and the still-to-be-published 25-year road map to put longer-term direction on firmer ground.
Since launching Field Notes, Charles Russell Speechlys’ weekly agricultural law and policy blog, in July 2025, we have tracked these developments and what they mean for day-to-day decisions on farms and estates. Throughout this article we link to highlights including Food Security is National Security, Is the Government’s Vision for Farming coming into focus? and Insight from the Great Yorkshire Show.
This week, in Part 1 of our Field Notes January Review: Policy we bring together our coverage on the key policy developments of 2025, explain what changed and why it matters, and signpost some key areas of focus for 2026 and actions landowners, farming businesses and rural professionals should take now.
Next week in Part 2 of our Field Notes January Review: Law we summarise the new legislation that was enacted in 2025 including the Arbitration Act 2025 and its implications for rural dispute resolution and what the Renters Rights Act 2025 means for estate housing, consider the most important Court decisions throughout the year and polish up our crystal ball to anticipate what new legal changes are likely this year.
Oxford Farming Conference and the missing roadmap - January
Ministers set priorities around productivity, nature and food security, promising a 25 year farming roadmap as the “most forward looking plan” yet. By year end, it was still not published, with timing slipping into 2026 – the rumour is that we might expect it in the summer. The scope is likely to cover food security, ELMS delivery, water, skills, rural planning and agri innovation, with profitability themes informed by Dame Batters’ review.
What to watch in 2026
Watch out for the roadmap! In the meantime, plan on some continuing uncertainty. Prioritise decisions that remain resilient to scheme changes, preserve options in tenancy and supply arrangements, and record assumptions behind capex for later review.
Scheme housekeeping and early consultations - February
In 2025, February saw updated guidance which clarified stacking, capital grant timetables and the SFI–BNG interface. New grants covered equipment, stewardship and protected landscapes. Other guidance was published throughout the year.
What to watch in 2026
After a turbulent year, we are now starting to see a little more information on the new SFI offer (government blog here) with an indication that there will be two windows for application – the first, opening June, for small farms and those without existing ELM agreements, the second in September for everyone else. The government has said they will publish full details before the first application window opens in June. Once more guidance and precise dates are released, diarise windows and apply early where funding is first come, first served. Stress test stacking across agreements and align evidence packs to the latest guidance.
SFI suspension and contract knock ons - March
On 11 March 2025, SFI was suspended without warning or notice after budgets were fully allocated. Apart from a brief, limited reopening, the much-criticised pause persisted. The immediate impacts were cashflow gaps, cropping changes and tenancy tensions where SFI income had been assumed.
What to watch in 2026
Apply as promptly as possible both to time limited funds and – given the 2025 experience – for any business-critical funding, even if it isn’t expressly time-limited. Review FBT clauses and licences tied to schemes, check variation and force majeure in supply contracts, and brief lenders early if cashflow shifts. Consider public law routes where decisions appear procedurally unfair.
Environmental compliance and planning - April
Spring activity centred on slurry infrastructure, abstraction timetables, “farming rules for water” enforcement and BNG implementation (and rewilding), alongside planning tweaks for on farm renewables and diversification.
What to watch in 2026
Carefully sequencing permits and consents can help de risk capex. Ensure tenancy documents cover consent for schemes and are clear on things like access for ecological surveys and other actions that may be needed as a precursor to plans for the holding.
Labour, supply chains and standards - May
Guidance evolved on seasonal labour routes and supply chain fairness, with continuing pressure points on pricing review, specifications and termination across fresh produce and livestock.
What to watch in 2026
Audit contracts for price adjustment, quality tolerances and dispute resolution routes. The Employment Rights Act 2025 received royal assent just before Christmas and will remove ability to use zero-hours contracts. Consider any impact from the Arbitration Act 2025.
Spending Review: budgets and enforcement capacity - June
Allocations across ELMS/SFI, capital grants, enforcement, flood and water resilience, and rural connectivity set the tone for the year ahead, with timing shifts affecting uptake and capex planning.
What to watch in 2026
Consider whether you need to re sequence project pipelines. Accelerate where funding is strong; defer or restructure where budgets tighten. Refresh cashflow and covenant headroom with lenders.
Guidance updates and scheme adjustments - July
Post review guidance brought payment rate tweaks, inspection standards and evidence expectations, plus (limited) roadmaps for reinstating paused SFI elements.
What to watch in 2026
Amend applications where beneficial, vary related agreements to reflect new obligations, and update internal checklists to current evidence standards. Review tenancy agreements to ensure alignment with scheme rules and timescales.
Estate management and succession - August
In Summer and Autumn 2025 we saw a series of court decisions (considered in more detail next week) which refined proprietary estoppel in family farm disputes, with assurance, reliance, detriment and proportionality under close scrutiny in cases such as Maile v Maile and Scott v Scott. It was a timely moment to align wills, partnership terms and occupation arrangements with family intentions.
What to watch in 2026
Keep contemporaneous records of discussions and remuneration. Ensure promises and expectations are reflected in formal documents and up to date letters of wishes.
Autumn policy signals and rural planning - September
Policy speeches and consultations shaped the outlook for diversification, storage, worker accommodation and rural energy projects, with market signals informing feasibility and delivery risk.
What to watch in 2026
Triage the project pipeline and your future plans for your farm or estate. Advance schemes aligned with clear support; pause those exposed to consultations or uncertain timing.
Compliance calendar and disputes - October
Regulators focused on slurry, water, habitats and cross compliance equivalents, while arbitration and mediation gained traction in rural disputes.
What to watch in 2026
Update dispute clauses for the Arbitration Act 2025 and maintain robust contemporaneous evidence for inspections and any contested decisions. Evidence of compliance and planning help manage risks associated with events on farm too.
Budget: tax and investment signals - November
Budget measures affected income and corporation tax, inheritance tax, capital allowances, and council tax with further signals on carbon, renewables and woodland incentives.
What to watch in 2026
Reassess capex timing, entity structuring between partnership and corporate, and succession plans in light of any inheritance tax or CGT changes.
Deadlines and outlook - December
Year end brought familiar record keeping pitfalls, as well as welcome news in the form of an increase to the 100% APR/BPR allowance. We also saw the long-awaited release of Baroness Batters’ Farming Profitability Review, which may give some indication of priorities for the new 25-year roadmap.
What to watch in 2026
Looking to 2026, watch for commencement of the Renters Rights Act, secondary legislation under the Arbitration Act, and the long awaited 25 year roadmap. Now is the time to complete a year end compliance audit, diarise 2026 application windows as dates are announced and ensure estate housing and dispute clauses are future proofed.
Policy Outlook for 2026
Assuming publication of the 25 year roadmap for farming at some point in 2026 (perhaps in the summer – I have heard a potential June release mentioned, though we don’t yet have confirmation of that) the sector should gain greater visibility on long term priorities, including resilience and productivity alongside environmental delivery. The balance of risk and opportunity is likely to favour well documented arrangements, flexible project pipelines, and early engagement with scheme and planning timetables.
Next week’s edition of Field Notes will consider the anticipated legislative changes over the next year, as well as looking back at the key legislative and case law developments in 2025.
Acknowledgements and contacts
This review draws on analysis from our Field Notes series and practice insights which benefit from contributions from our colleagues across agricultural dispute resolution, private wealth disputes, private property, real estate disputes, private client specialists and rural advisory teams. For tailored advice on any of the issues discussed, please give us a call and we would be happy to discuss how we can help.
