Government unveils £65m package for drought-hit farmers

Farmers across England are being handed a £65 million drought support package as record-dry conditions hit crop yields, livestock feed and access to water.

The funding will come from within Defra’s existing farming budget, with £50 million added to the Sustainable Farming Incentive and up to £15 million earmarked for on-farm reservoirs.

Around three-quarters of England is in drought, with growers facing poor yields, livestock farmers drawing on winter feed and more than 1,500 abstraction licence restrictions recorded in the week to 12 August.

The package follows the driest July on record in England and Wales and comes after the Prime Minister chaired a COBR meeting on extreme heat, wildfires and drought.

Prime Minister Andy Burnham is due to visit a farm in the South West alongside Farming Minister Stephen Morgan to meet producers affected by the prolonged dry spell.

Burnham is expected to say: “The ability to grow our own food is national security, and I will treat it that way. So we are acting now: more money into farm support, help to get reservoirs built, and easier access to water when it is scarce.”

He will add: “This is the third drought in five years. Farmers are at the sharp end of a changing climate, and they should not be carrying that risk alone.”

The support package is intended to help farmers get water to crops, keep livestock fed where grass has failed and remain in environmental agreements when drought makes normal requirements difficult to meet.

Farmers will be given temporary flexibility within the Sustainable Farming Incentive, Countryside Stewardship and legacy agreements, allowing some drought-hit land to be grazed or cut without automatically losing payments, provided soils are protected.

The government says this is designed to avoid forcing farmers to choose between animal welfare and compliance with environmental scheme rules during exceptional dry conditions.

Water access is another major focus.

The Environment Agency recorded more than 1,500 abstraction licence restrictions in the week to 12 August, while Section 57 spray irrigation restrictions were applied to 302 licences in East Anglia.

Existing environmental limits on abstraction will remain, but the government says it will speed up licence variations and make it easier for water to be shared between holdings.

Planning guidance is also set to be updated to make it easier to build farm reservoirs.

Defra Secretary Angela Eagle said: “I am acutely aware of the pressures exceptionally dry weather is placing on farm businesses.”

She added: “Our farmers are facing some of the toughest conditions in decades, which is why we’re stepping in with practical support to help them through these challenging conditions and build resilience for the future.”

The National Farmers’ Union welcomed the package but warned that support for water infrastructure and resilience would not solve the immediate cashflow problems facing many farm businesses.

NFU President Tom Bradshaw said: “The £65m of investment into the Sustainable Farming Incentive (SFI) and water infrastructure is very important strategic support that will benefit farmers.”

He added: “However, we are experiencing a huge crisis of cashflow and confidence across all sectors and urgent support will be needed for farmers who are feeling that pressure now, so they are still producing food next year.”

The NFU said the drought had contributed to an exceptionally early harvest and historically low yields, while poor grass growth had forced some livestock and dairy farmers to use winter feed stocks.

Potatoes, sugar beet and other field crops have also been hit by the lack of water, while some irrigating farms are facing restrictions or falling reservoir levels.

Bradshaw said more detail would be needed on how the measures would work in practice.

“Today’s announcement is welcome and includes many of the NFU’s asks, but more detail is needed to understand how these will work in practice,” he said.

The Country Land and Business Association also welcomed parts of the package but said the measures would not be enough on their own.

CLA President Gavin Lane said: “The government has reallocated existing money from the farming budget to help farmers combat drought. This is a welcome and pragmatic move but little more than a temporary fix.”

He added: “The announcement that government will make it easier to build on-farm reservoirs is a positive step, but the £15m made available will fund a fraction of the reservoirs we need.”

The Wildlife Trusts welcomed the extra SFI funding but said long-term resilience would depend on sustained investment in healthy soils, habitats and nature-based measures.

Gemma Lane, land use policy manager at The Wildlife Trusts, said: “As extreme weather becomes more frequent, this additional funding for the Sustainable Farming Incentive is a positive step in supporting farmers to improve their resilience to the growing impacts of climate change.”

The government says the current dry spell is not expected to affect national food security, but ministers and farming groups agree that greater resilience will be needed if extreme weather becomes more frequent.

The package is intended to provide immediate relief while improving long-term water security, but farm groups say sustained investment will still be needed to help businesses cope with future droughts.