NFU warns sheep farms fighting for survival amid rising costs

Britain’s sheep farmers are under increasing pressure from soaring costs, climate uncertainty and falling support payments, the NFU has warned.

The union has launched a new report outlining its vision for a more resilient and profitable sheep sector, while calling for stronger backing from government and the wider supply chain to safeguard domestic lamb production.

In its report, Supporting British sheep farming, the NFU says the industry can continue delivering high-quality food, environmental benefits and rural jobs — but only if farmers are given the confidence to invest for the future.

The warning comes amid continued uncertainty over post-Brexit agricultural support, with many upland livestock farms facing growing financial strain.

Livestock producers have also been hit by rising feed, fuel and fertiliser costs in recent years, alongside increasingly unpredictable weather and wider global instability.

NFU National Livestock Board vice-chair Clare Wise said sheep farming remained central to the rural economy and countryside.

She said British sheep farmers were global leaders in production standards, animal welfare and genetics, adding that the sector played a vital role in supporting rural communities and maintaining landscapes across both upland and lowland areas.

However, Wise warned that many businesses were now under severe pressure.

She said rising input costs, climate pressures and geopolitical instability had “undermined confidence and threatened the viability of many sheep farming businesses, particularly those in the uplands”.

Among the NFU’s recommendations is a call to retain all current castration and tail docking methods for lambs up to seven days old as part of the government’s animal health and welfare strategy.

The union is also urging Defra to explore removing sheep from Specified Risk Material requirements, which would mean carcasses no longer need to be split during processing — something the NFU believes would help reduce unnecessary costs for processors and producers.

The report also highlights the need for continued investment in border controls and biosecurity measures to protect the UK against exotic livestock diseases.

Alongside this, the NFU wants Environmental Land Management schemes and future grants to better recognise the role of grassland and livestock farming in meeting environmental targets, while continuing to support sheep production across all farm types and tenures.

The organisation is also calling for closer monitoring of the newly introduced Sheep Carcass Classification Scheme to ensure producers are treated fairly throughout the supply chain.

Wise said the industry wanted to build a sheep sector that was profitable, progressive and capable of competing internationally while maintaining high standards of welfare and environmental management.

“For that to happen, we need government, industry and the entire supply chain to back the policies we’ve outlined in our vision,” she said.

The NFU warned that without stronger long-term support, confidence in the sector could continue to decline, threatening future breeding capacity, domestic lamb production and the viability of many rural communities.