The UK government plans to revise how agriculture’s economic contribution is measured, aiming to elevate the sector’s value to a level comparable with car manufacturing, Environment Secretary Emma Reynolds announced. This adjustment reflects a broader approach that includes not only farming itself but also the entire agri-food supply chain, encompassing food and drink processing linked to agricultural raw materials.
Currently, farming’s contribution to the economy is estimated at 0.6 percent of gross value added (GVA), equivalent to approximately £14.5 billion. Reynolds proposed expanding this calculation to account for products derived from farms, such as milk transformed into yoghurt and hops used in brewing beer. Incorporating the wider agri-food sector—which includes food manufacturing and catering—raises its value to 6.2 percent of GVA, with the industry employing around 4.1 million people, or one in ten workers nationwide.
Reynolds emphasized that the existing figure underrepresents the sector’s significance. “That [0.6 percent] massively underplays and underestimates the value of farming,” she said, noting that the agri-food sector rivals the automotive and construction industries economically. The government is collaborating with the Office for National Statistics to implement the new accounting method as part of a broader “reset” aimed at rebuilding trust with farmers.
This effort follows discontent in the farming community over recent inheritance tax proposals and abrupt closures of subsidy schemes. Reynolds acknowledged the need to repair this relationship and expressed commitment to a long-term vision for England’s farming sector. Ahead of the launch of a 25-year “farming roadmap” and the government’s response to an independent review by Baroness Julia Batters—former National Farmers’ Union president—Reynolds stressed the intended shift away from short-term policy cycles.
The roadmap aims to balance food production goals with environmental objectives, rejecting the notion that agricultural output should supersede nature conservation or flood prevention efforts. “Everything sort of depends on each other,” Reynolds said, highlighting that continued subsidies will require farmers to implement practices that, for example, improve soil health.
Baroness Batters’ review contained 57 recommendations, including facilitating the construction of farm reservoirs, enhancing access to finance, and addressing labor shortages in harvesting certain crops like salads and berries. Reynolds indicated that 53 of these proposals have been accepted, with further details to be released alongside the farming roadmap.
In a separate comment, Reynolds expressed opposition to leadership contests within political parties and voiced strong support for Andy Burnham’s potential prime ministership, describing him as a “fantastic communicator.”
