Farmers snubbed as energy support scheme shuts out agriculture

Farmers have accused the government of snubbing food production after agriculture was shut out of a major expansion of energy bill support, warning the decision could have consequences for both supply and prices.

The British Industrial Competitiveness Scheme (BICS) will be extended to around 10,000 more manufacturers, offering electricity bill cuts of up to 25% to energy-intensive industries facing global competition. Sectors such as manufacturing are set to benefit, but farming businesses remain excluded.

The National Farmers’ Union (NFU) said the move represents a significant missed opportunity to ease pressure on the sector and support domestic food production, reinforcing concerns that agriculture is being overlooked in industrial policy.

NFU president Tom Bradshaw said it was “deeply frustrating that food has been forgotten again”, despite ministers recognising the impact of soaring energy costs on other industries.

Crucially, he highlighted the horticulture sector, where growers depend heavily on energy to produce crops in heated glasshouses and supply much of the UK’s fresh fruit and vegetables.

Parts of the industry are “incredibly energy-intensive”, he said, facing the same global price volatility as other sectors while lacking access to equivalent support.

Energy costs have surged in recent years, placing increasing strain on growers already operating on tight margins, with some warning that production decisions are now being affected.

Bradshaw said the exclusion risks holding back investment at a critical time for UK food production.

“By excluding farming, the government is effectively putting a handbrake on investment and our ability to produce a supply of sustainable, high-quality food,” he said.

He described the policy as a “major missed opportunity to bolster national food security” amid ongoing geopolitical uncertainty and volatile energy markets.

At the same time, growers are facing further pressure from rising electricity standing charges, compounding already high operating costs.

The NFU is urging the government to urgently review the scheme’s eligibility criteria and reconsider energy-related charges hitting the sector.

“There is a risk growers saying this fruit and veg is too expensive to grow,” Bradshaw warned.

The union said the issue extends beyond farm businesses, with potential knock-on effects for consumers if domestic production becomes less viable and reliance on imports increases.

Food and drink is the UK’s largest manufacturing sector, and farming groups argue it should be treated on a level footing with other energy-intensive industries.

“If we want a resilient domestic food system, we cannot continue to treat farming as an optional extra in industrial policy,” he said.

“Our members need the same relief on electricity policy costs as other heavy users if they are to remain competitive and continue feeding the nation.”

The government has not commented directly on the exclusion of agriculture from the scheme, although BICS is intended to support sectors deemed most exposed to international competition.

The row highlights growing concern that, without targeted support, rising energy costs could reduce UK food production, increase reliance on imports and add further pressure to household food bills.