The National Farmers’ Union (NFU) has welcomed the UK government’s drought relief package but warned the agriculture sector is facing a “huge crisis of cashflow”.
Prime Minister Andy Burnham has announced funding of up to £15m ($20.3m) for farmers to build on-site reservoirs as the NFU said the lack of rain and depletion of water reserves risks pushing up the cost of food production.
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An extra £50m will also be provided to the so-called Sustainable Farming Incentive 2026 Window 2, taking this year’s total allocation from the Department for Environment, Food and Rural Affairs to £290m, a move the government said will “help farmers to adapt to the risk of future droughts”.
NFU said the additional funding will help its members “better manage the severe pressures they are battling caused by sustained hot, dry weather and a continued absence of rain”.
The dry weather has caused what the NFU described as an “incredibly early harvest and historically low yields”, while scorched land has forced dairy and livestock farmers to turn to winter supplies to feed cattle.
Potato, sugar beet and “other field crops” are also “failing” due to a lack of water, it added.
NFU President Tom Bradshaw said in a statement: “Providing this relief package and meeting with farmers to hear first-hand from them, it’s clear that the Prime Minister has recognised the serious impacts this drought is having on farmers and on our ability to water crops, feed livestock and keep food production on track.
“The £65m of investment into the Sustainable Farming Incentive (SFI) and water infrastructure is very important strategic support that will benefit farmers. 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.”
Nonetheless, Bradshaw added that more detail is needed on how the funding package will work in practise to ensure a “resilient food system” in the UK.
NFU Deputy President Paul Tompkins said: “It’s clear that our weather patterns here in the UK are changing. We can no longer always rely on rain throughout the year, and it’s imperative that we invest in our national water infrastructure so we can capture and store water at times of plenty for use in times of shortage.”
The organisation’s Vice-President Robyn Munt added that the extra SFI funding is “crucial”, particularly in areas such as improving soil health, as the NFU pledged to “continue to work with Defra to ensure this scheme delivers”.
