The government's new 'eat out to help out' discount could play a 'significant role' in stimulating demand for British produce, the NFU says.
Chancellor Rishi Sunak unveiled the scheme as part of a suite of measures to kickstart the British economy amid the Covid-19 crisis.
Restaurant customers will get a 50% discount off their bill during August under plans to boost the struggling hospitality sector.
The deal means diners will be able to get up to £10 off per head if they eat out from Monday to Wednesday next month.
Pubs and restaurants reopened on 4 July following three months of closure due to government safety regulations to prevent the spread of the coronavirus.
The ceasing of trade to the sector produced a destabilising effect on the market prices for British lamb and beef.
NFU president Minette Batters said Mr Sunak's measures could now help increase the flow of British food back into hospitality following the lockdown.
“The hospitality sector reopening is significant for British farmers and it will play a central role in farming’s recovery," she said.
"We hope the announcement to stimulate the hospitality and tourism sectors by cutting VAT will see increasing demand which will help British food flow back into our pubs, cafes and restaurants.
"This will start to ease the pressure many farm businesses are facing," Mrs Batters said, adding that the 'eat out to help out' discount could play a 'significant role' to stimulate demand for British food.
She added: “There is an opportunity now for food service to demonstrate their commitment to British farmers and provide the public with even more opportunities to purchase quality British food and drink."
The Treasury said the 'eat out to help out' discount can be used unlimited times over a total period of 13 days next month. It applies to participating restaurants, cafes and pubs.
Companies will be able to register their interest on the government's website from Monday 13 July.