Concerns grow over environmental farming support amid rising costs and unpredictable weather
England's environmental farming schemes face a funding shortfall of more than £2 billion, new analysis warns, just weeks after thousands of farmers were left without support following the rapid closure of the Sustainable Farming Incentive.
The Wildlife Trusts is urging the chancellor to increase agricultural environmental funding ahead of Wednesday's autumn budget, arguing that existing support falls far short of what farmers need to tackle extreme weather and protect food production.
Research published on Tuesday (27 October) estimates that at least £3.8 billion is needed to meet England's environmental farming priorities, compared with the £1.65 billion budget used in the charity's analysis.
The figures suggest a shortfall of approximately £2.15 billion, although Defra has separately indicated that Environmental Land Management (ELM) funding for 2026/27 will be around £1.95 billion.
The warning follows the closure of the latest Sustainable Farming Incentive (SFI) application window on 22 September, when an initial £233 million budget was exhausted in less than six hours. The allocation was subsequently increased to £253 million.
The rapid closure sparked criticism from farming organisations and MPs, with concerns that many businesses were unable to secure support for planned environmental improvements.
The Wildlife Trusts argues that the situation demonstrates a wider shortage of funding for farmers seeking to improve soil health, manage flooding and protect wildlife.
Vicki Hird, strategic lead of agriculture at The Wildlife Trusts, warned that mounting financial and environmental pressures were threatening the future of farming businesses.
“Britain’s farmers are facing a cacophony of crises, and the coming year could be make or break for many,” she said.
The organisation pointed to increasingly unpredictable weather, including prolonged rainfall, drought and extreme heat, which can damage crops, degrade soils and disrupt agricultural production.
It argues that greater investment in nature-friendly farming could help businesses withstand these pressures while protecting long-term food security.
Proposed measures include restoring peatlands, planting hedgerows and trees, improving soil management and creating wildlife habitats.
According to the analysis, more than £2 billion of the estimated funding requirement would cover upfront investment in environmental improvements and land-use changes.
Around £1.7 billion would support ongoing management, specialist advice and the maintenance of nature-friendly farming practices.
The Wildlife Trusts says these measures could improve farmland's resilience to flooding and drought while reducing the risk of future disruption to food production.
“Nature is here to help. Properly funding farmer-led nature-based solutions can make farmland and crops more resilient to flooding and drought by rewetting land, rebuilding soil health, supporting water management and restoring nature,” Ms Hird said.
However, the charity argues that environmental farming budgets have failed to keep pace with rising costs and demand for support.
The latest SFI application process has intensified concerns about funding availability, particularly for farmers who had planned environmental work around securing new agreements.
Defra confirmed earlier this month that £310 million had been allocated to new SFI26 agreements across two application windows, including £253 million through the second.
The government said the funding would support nearly 19,000 new agreements, with £930 million committed over three years to environmentally sustainable farming.
Ministers have also acknowledged the disappointment of unsuccessful applicants and said another SFI opportunity is planned for 2027, with further details to follow.
The Wildlife Trusts maintains that the current level of investment is insufficient to meet England's environmental ambitions or the growing challenges facing agricultural businesses.
Its proposed increase would require substantial additional government spending, while any benefits for food prices would depend on how effectively environmental improvements support agricultural production.
With the latest SFI window already closed, farmers are now looking for greater certainty over future funding and opportunities to access environmental support.
The Wildlife Trusts is calling on the chancellor to address what it considers a substantial funding gap, arguing that investment in healthier soils, water management and climate resilience is essential for the long-term future of English farming.