IN January, I joined thousands at LAMMA – the first great agricultural gathering of 2025 where, after the doom and gloom of 2024, I expected a subdued and pessimistic atmosphere.
How wrong I was.
Two words echoed in every conversation: Resilience and fight-back. These words capture the tone of 2025—a year that demands adaptability, collaboration, and bold leadership.
At the Oxford Farming Conference earlier this year, the DEFRA Secretary Steve Reed summarised the challenge perfectly: “Farming must be recognised as a serious business that needs to turn a decent profit,” he said, adding: “Climate change and external shocks will keep challenging the sector.”
As these words suggest, the industry faces a defining period. But how can the potato sector thrive amidst rising costs, increasing taxes, and regulatory changes?
Forthcoming tax reforms, like the new National Insurance hike and the ‘Double Cab Tax‘, are going to squeeze margins and mean familiar practices no longer make sense, but I’ve worked with leaders across the potato supply chain and know that challenges can be turned into opportunities.
One example is James Morrison, a potato farmer from Herefordshire, whose operation evolved in three key ways: Automated processes reduced labour costs by 40%, partnerships with neighbouring farms to share equipment, reduced overheads and the soil health initiatives he launched qualified for new tax reliefs.
“We’re not just growing potatoes anymore—we’re growing the future of farming,” said James
By 2026, the inheritance tax landscape will shift dramatically, creating ‘The Great Divide.’ On one side will stand the innovators, those embracing collaboration and sustainability. On the other will be those struggling to keep pace.
Sarah Jenkins, a Norfolk grower, took decisive action with our support. Her farm became part of a five-farm collective, sharing resources like cold storage and marketing costs. The result was lower tax burdens, higher profitability, and greater bargaining power in an increasingly competitive market.
Then comes 2027, bringing the Carbon Border Adjustment Mechanism. For forward-thinking businesses, this isn’t just another regulation, it’s a competitive advantage. Growers can prepare by
investing in precision agriculture systems to reduce carbon footprints, implementing soil health programs to boost yields and capture carbon and establishing tracking systems to verify and market sustainable practices.
By 2030, the revolution will be in full swing. Regenerative agriculture will no longer be a buzzword—it will be a business advantage. Imagine potato fields where no-till farming slashes costs and protects soil health, cover crops enrich the soil between rotations and precision tools optimise every square metre for maximum yield.
The innovators won’t just survive, they’ll lead.
By 2035, the most successful operations will be carbon-neutral powerhouses, where sustainability drives profitability. Forward-focussed growers will have achieved carbon-neutral certification, robust biodiversity across their farms, climate-resilient systems built for the future and premium market positions based on verified sustainable practices.
The road ahead is challenging but full of opportunity.
Here’s a summary of the forthcoming tax changes and government updates to put on your radar …
When: April 1st, 2025 (Corporation Tax) / April 6th, 2025 (Income Tax)
What’s changing: Double cab pick-up trucks (1 tonne or more) will be taxed like cars. If bought before April 2025, old rules apply.
When: April 6th, 2025
What’s changing: Easier to pass on land for environmental projects with less inheritance tax.
When: April 6th, 2025
What’s changing: 100% tax relief on the first £1 million. After that, relief drops to 50%.
When: April 6th, 2025
What’s changing: Employers pay 15% National Insurance (up from 13.8%) on the first £5,000 per employee.
When: 2025–2026
What’s changing: What’s changing: £5 billion to support eco-friendly farming practices and environmental protection.
When: January 1st, 2027
What’s changing: Tax on imports like cement and steel made with high carbon emissions to encourage greener production.
