OFC Dispatch: Policy Signals, Profitability and Environment
- Ana Reynolds
- 4 hours ago
- 5 min read
As I made my way to Oxford for my second year at the Conference, the weather warnings made a part of me wonder if we’ll all end up snowed‑in together in the Examination Rooms, Ministers included. It would certainly allow plenty of time for the kind of in‑depth conversations farming needs right now!
Joking aside, the Oxford Farming Conference always feels like the perfect place to take stock of where policy in practice is heading, particularly in England. December brought some significant signals, - from the long‑awaited Farm Profitability Review to changes in inheritance tax and new commitments for landscape‑scale environmental delivery. I was fortunate to be part of a panel discussion, alongside other farmers, first thing today, where we touched on much of this along with more practical aspects of farming, nature recovery and believing in the future. And, later this morning, we finally heard some long-awaited news on SFI 2026.
"How can we, as an industry, move beyond the short-term grant rollercoaster towards long-term investment and strategies that build resilience and deliver measurable outcomes?" was one of my questions to Emma Reynolds MP.
Below, are some of my thoughts, from in the midst of the Conference.
SFI 2026: Two Application Windows
Emma Reynolds MP announced this morning that there will be two application windows for SFI 2026 - first from June, prioritising smaller farms and those without an existing agreement, and a second from September, for wider applications. The definition of “smaller farms” will remain elusive for the time being, but we hope will exceed the mooted “50ha.” And the budgets will be very clear, “just like capital grants last year” - so expect a tight window for applications.
The promised certainty that farmers need to plan, including clear budgets, clear timelines and a clear future roadmap seems to be coming. We look forward to seeing more detail later in the year.
Farm Profitability Review: Key Takeaways
Baroness Minette Batters’ Farm Profitability Review landed on 18th December. It’s a detailed, evidence‑led assessment with 57 recommendations designed to improve resilience and long‑term viability - emphasising better use of data, simpler regulation, targeted innovation and genuine government‑industry partnership. The report is being actively discussed at OFC and has already prompted a new cross‑industry Farming and Food Partnership Board. For farm leaders, the near‑term message is about certainty, investment confidence, and the ability to plan - not just this year or in 3-year increments, that are all too brief, but over the next decade.
We now await the formal government response and whether the case for long‑term investment as an economic good, not a cost sink, will truly be accepted.
Inheritance tax: December’s Change to Allowances
Just before Christmas, government increased the planned allowance for 100% Agricultural Property Relief (APR) and Business Property Relief (BPR) from £1 million to £2.5 million per individual from 6 April 2026, with spousal transferability effectively providing up to £5 million of qualifying assets, on top of the existing allowances such as the nil-rate band. This substantially reduces expected IHT exposure for many farming estates compared with the earlier proposal. For succession planning, the immediate action is to revisit modelling with your advisers.
Landscape-Scale Funding
Defra’s revised Environmental Improvement Plan (EIP) announcement, published 1st December, committed £500 million to Landscape Recovery. Albeit a modest amount in the context of the scheme’s ambitions, it is positioning large‑scale, longer-term, multi‑farm projects as central to nature recovery, flood management and water quality, as well as a model for investment (public and private) in “national nature infrastructure.”
For farms, estates and clusters, this could create genuine scope to integrate catchment‑level habitat networks and peatland/wetland restoration with continued agricultural activity, especially where lower‑grade parcels can deliver outsized environmental outcomes. The EIP also raises habitat ambitions by 110,000 hectares more than previous commitments - useful context when framing whole‑estate risk and ESG narratives, and environmental strategies.
The funding is welcome, but delivery (and contract terms!) must be practical, timely and compatible with long‑term farming. We will continue to argue for clearer stacking rules and improved access to finance, predictable starts and evidence frameworks that capture real environmental gains.
Higher Tier and Legacy Agreements
CS Higher Tier (CSHT) guidance was refreshed in 2025 and updated again this week, but the controlled roll‑out and invitation‑only pre‑application route leaves many early adopters uncertain. Mid-Tier extensions offered at the end of the year were helpful, yet thousands of agreements will continue to expire, and there is still no coherent end‑to‑end plan to transition legacy agreements at scale into new schemes.
The official CSHT materials now include updated actions, capital rates and eligibility clarifications, and a wider opening is expected after the controlled phase. However, the sector needs clear timelines, capacity and advice budgets so complex sites can move into appropriate agreements. Echoing Minette Batters’ review - policy certainty and long‑term partnerships are prerequisites for profitability and resilience, - and we must avoid any delivery dip that undermines outcomes and confidence with the Treasury.
Strategy Over Short-Term Grants
With schemes and funding pots evolving and becoming more fragmented, we continue to advocate a strategic, whole‑farm or whole-estate approach: design environmental delivery that demonstrably improves nature recovery and resilience to climate and market shocks, then use grants where they fit. Bioacoustics is one example of innovation we are progressing with partners - deploying autonomous recording to quantify species presence and activity at scale, providing evidence of impact.
Defra’s work to develop species abundance indicators for statutory targets underscores the need for robust, repeatable monitoring methods. Expect more from Oakbank on this in 2026 - including pilots aligning acoustic data with habitat management and agronomic decisions.
As policy architecture matures, the businesses that prosper will be those measuring what matters, investing with confidence and leveraging partnerships at farm, cluster and national level. I hope that the Government’s delivery matches ambition.
Practical Next Steps
Map legacy agreement exposure (2026–28), identify priority parcels for upcoming schemes, and build transition plans with contingencies to avoid gaps
Update succession planning to reflect APR/BPR allowances, but also within the wider context of your business and personal aspirations
Prioritise resilient infrastructure (water storage, drainage, shelter belts, energy) and environmental delivery that reduces volatility
Prepare for landscape scale bids, where relevant, engage neighbours, clusters and catchment groups early and align your ambitions
Talk to us about monitoring in selected habitats to evidence nature recovery and inform management, positioning for outcome-based funding and private finance
Book your place at Oakbank’s roadshow to discuss any of this, as well as the more immediate needs around stewardship, environmental crop, game cover or woodland establishment and management in 2026:
Raynham, Norfolk – 6th February, 09:30-12:30. 🔗 Register here
The Holt, Hampshire - 13th February, 09:30-12:30. 🔗 Register here
Durhamfield Farm, Northumberland - 25th February, 09:30-12:30. 🔗 Register here
Red House Farm, Yorkshire – 4th March, 09:30-12:30. 🔗 Register here
