UK Farming Faces Losses with Poor EU Trade Deal: Report Highlights SPS Risks

UK Farmers Face Potential £810m Income Hit from EU Crop Protection Alignment

British farmers could see their incomes reduced by up to £810 million in a single year if the UK aligns its crop protection rules with the European Union, according to new analysis. The warning comes as the UK government and the EU continue to negotiate a Sanitary and Phytosanitary (SPS) agreement, intended to ease trade barriers post-Brexit.

The analysis, conducted by the Andersons Centre for CropLife UK, highlights the potential financial impact of a rapid shift to EU regulations. According to the report, a poorly negotiated SPS deal could diminish UK farm incomes by as much as 10%. Crop production of key staples like wheat and potatoes, as well as fresh produce such as apples, berries, and leafy vegetables, could also be affected.

The concerns center around the potential loss of plant protection products currently approved for use in the UK but not yet authorized by the EU. The Andersons Centre examined the impact of immediately reverting to EU standards, effectively removing access to these products.

CropLife UK is urging the British government to negotiate a phased approach to alignment, allowing for a more managed transition. Dave Bench, the organization’s chairman, stated that the report demonstrates the importance of assessing the costs and consequences of different approaches before finalizing any agreement. “This report shows just how damaging a poorly negotiated deal could be. We want to support the UK government in ensuring the impact on British farmers and consumers is minimized,” Bench said.

The National Farmers’ Union (NFU) echoed these concerns, emphasizing the need to avoid a sudden change in regulations. The NFU estimates that an immediate and complete alignment with EU rules on plant protection products could cost the arable and horticultural sectors between £500 million and £810 million in the first year. According to the NFU, four new plant protection products have been approved for use in Great Britain since January 2021 that are not yet available in the EU.

NFU President Tom Bradshaw described a transition period as “absolutely necessary,” stating that the report “confirms what we have already set out at the highest levels of government: there are significant risks to farming businesses and British food production that need to be very carefully managed within the SPS negotiations.”

A new UK-EU agreement, including the SPS agreement and the removal of some routine checks on animal and plant products, was unveiled by Keir Starmer in May 2025. The agreement aims to reduce red tape and facilitate smoother trade flows between the UK and the EU, including between Great Britain and Northern Ireland. The British Meat Processors Association described the deal as a “pragmatic agreement” that would be beneficial for businesses and consumers, noting that it could restore trade that had ceased due to post-Brexit complexities.

However, some organizations have expressed reservations. The Country Land and Business Association questioned whether the deal represented an unnecessary surrender of control. Concerns have also been raised about the potential impact on organic production and consumer choice, with some warning that reduced traceability and safeguards could pose risks.

Despite the broad welcome for easing administrative burdens, farming groups stress that addressing underlying issues such as low profitability, limited capital, and poor connectivity remains crucial for the long-term health of the UK agricultural sector.

In late January 2026, the UK government announced a £21.5 million investment in 15 farming innovation projects across England, aimed at cutting emissions, boosting productivity, and accelerating the adoption of new technologies. These projects span dairy, arable, and horticulture, and include initiatives focused on vitamin D-enriched tomatoes, low-emission fertilizers, and climate-resilient hemp.

The European Parliament’s environment committee also recently backed a trilogue deal on the regulation of New Genomic Techniques (NGTs) in plants, establishing a two-tier system for regulation. NGT-1 plants will be regulated like conventionally bred crops, while NGT-2 plants will remain under GMO-style rules.