Government Reaffirms Commitment to Supporting British Farmers

On February 20, the government reaffirmed its dedication to implementing a strategy aimed at supporting thriving agricultural businesses, enhancing food security, and safeguarding the UK’s farming sector for future generations.

During the National Farmers Union Conference held in Birmingham, the Prime Minister and the Environment Secretary introduced several initiatives designed to boost productivity and resilience within the agricultural sector. This includes the largest grant allocation ever for farmers in the upcoming fiscal year, anticipated to reach £427 million.

The funding will see investments in productivity schemes doubling, with enhancements to programs like the Improving Farming Productivity grant, which assists farmers in investing in automation, robotics, and solar energy installations to bolster on-farm energy independence.

Additionally, the Prime Minister unveiled a new annual Food Security Index that will track vital data to assess the status of food security across the UK. The government also committed to hosting the Farm to Fork Summit annually and introduced a £15 million fund aimed at reducing food waste by helping farmers distribute surplus food that cannot be sold commercially.

On the regulatory front, fresh legislation will be introduced in Parliament to establish fair and transparent contracts for dairy farmers, ensuring clearer pricing agreements; any changes to contracts will require farmer consent, and there will be simplified procedures for farmers to voice concerns regarding their contracts. Furthermore, a review will begin to enhance fairness within the poultry supply chain.

Environment Secretary Steve Barclay emphasized:

For generations, farmers have diligently provided food for our communities and have cared for our beautiful British landscape. This commitment led us to allocate £2.4 billion to support British farming, enhancing agricultural productivity, resilience, food security, and environmental health.

Our comprehensive package of competitions and grants aims to encourage technology and innovation, and our adaptive farming schemes are designed to support diverse farming operations in sustainably producing food.

The government revealed that farmers could expect enhancements to the Sustainable Farming Incentive (SFI) beginning in July, following an announcement from Environment Secretary Steve Barclay in January.

The improved offering will include a 10% average increase in SFI and Countryside Stewardship (CS) payment rates; a simplified single application process for both SFI and CS Mid-Tier; and the introduction of around 50 new actions eligible for payments.

Moreover, the government will double the Management Payment for SFI, providing those with existing agreements an extra £1,000 this spring, and will extend it to the Countryside Stewardship mid-tier for the inaugural year of agreements commencing by March 2025. Consequently, the 11,000 farmers who have applied for SFI will receive this additional payment this spring.

During the conference, Environment Secretary Steve Barclay led a roundtable discussion with regional NFU board members to explore opportunities and issues facing farmers throughout the UK. Farming Minister Mark Spencer will participate in a political session at the conference on Wednesday.

Farming Minister Mark Spencer stated:

Ensuring food security and promoting sustainable food production is crucial in light of increasing extreme weather events and global challenges. Today’s announcements reinforce our support to farmers in achieving this while also prioritizing environmental stewardship.

Nearly half of the farmers in the UK have already joined our farming schemes, and we are committed to continuously collaborating with farmers to refine and enhance our offerings to encourage widespread participation.

Additional measures unveiled include a pledge of up to £500,000 to fund initiatives addressing mental health within the agricultural sector, as well as the expansion of permitted development rights to facilitate farm business diversification through avenues such as farm shops and recreational venues.

Funding will also be allocated to Internal Drainage Boards responsible for safeguarding agricultural land and rural communities from flooding, contributing to recovery efforts following recent flood events and modernizing infrastructure to decrease costs for farmers while increasing resilience against climate change.

Further Details:

Investment in Sustainable, Resilient Agricultural Businesses

• The enhanced Sustainable Farming Incentive (SFI) program, announced by Environment Secretary Steve Barclay at the Oxford Farming Conference, will launch in July. This includes a 10% increase in average agreement values for SFI and Countryside Stewardship (CS); a simplified application process for SFI and CS Mid Tier; and approximately 50 newly compensated actions for farmers.
• Additionally, we will double the Management Payment for SFI, enabling current agreement holders to receive an extra £1,000 this spring and incorporate it into Countryside Stewardship midsize agreements starting by March 2025. This means that the 11,000 farmers who have applied for SFI will benefit from this top-up this spring.
• We will initiate the largest round of grants in 2024, projected to total £427 million, doubling investments in productivity initiatives, with the grant offer increasing from £91 million last year to £220 million this year, which includes:
  • £116 million for infrastructure and equipment grants focused on slurry management.
  • £91 million for the Animal Health and Welfare Pathway grants, aiding costs connected to livestock health and welfare enhancements.

Productivity Programs:

• £70 million allocated to the Farming Equipment and Technology Fund to assist farmers in purchasing eligible items that enhance sector resilience and food security.
• £70 million designated for the Farming Innovation Programme to foster innovations, research, and development benefiting farmers, growers, and foresters across England.
• £50 million for the Improving Farming Productivity Fund to support investment in robotics, automation, and rooftop solar for bolstering on-farm energy security.
• £15 million for the Adding Value Grant, a component of the Farming Investment Fund, available to farmers aiming to expand into processing, packing, and retailing operations.
• £15 million for Water Management Grants, part of the Farming Investment Fund, designated for on-farm reservoirs and irrigation improvement projects.

Ensuring Food Security

• We will launch an annual Food Security Index to support the triennial UK Food Security report, presenting key data needed to gauge our levels of self-sufficiency and overall food security.
• The first draft of the Food Security Index will be introduced during the second UK Farm to Fork Summit this spring, with statutory obligations for the annual Food Security Index to be formalized once parliamentary scheduling permits.
• A £15 million fund will be established to assist farmers and the redistribution sector in managing surplus food that cannot be utilized commercially, reducing food waste at the farm level.
• The UK Farm to Fork Summit will be institutionalized as an annual gathering.

Enhancing Services and Support for Farmers

• We will streamline regulations through new legislation in April for permitted development rights, allowing farmers to develop structures and diversify revenue through farm shops and other commercial avenues.
• Up to £500,000 will be allocated for projects supporting mental health in the agricultural sector, complementing the existing support from the Farming Resilience Fund, which has assisted over 19,000 farmers to date.
• We are committed to enhancing our services through better digital infrastructure to provide more efficient processes with expanded application windows and timely payments, ensuring that government bodies treat farmers with respect.

Fostering Fairness in the Supply Chain

• We are progressing on regulations to guarantee fairness and transparency in dairy sector contracts, with new rules introduced in Parliament. These regulations will apply to all contracts, ensuring fair pricing for farmers’ products.
• Similar regulatory efforts for the pig sector are being planned for later this year, with the egg sector regulations to follow.
• A comprehensive review will also be conducted to evaluate fairness in the poultry supply chain.

FACTSHEET

Key Achievements:

• In January at the Oxford Farming Conference, we announced the most significant update to farming schemes since exiting the EU, featuring an average 10% increase in Sustainable Farming Incentive and Countryside Stewardship payment rates, along with approximately 50 new Environmental Land Management actions.
• We initiated the Farming Recovery Fund following severe weather in early 2024, providing grants up to £25,000 for farmers affected by flooding.
• Provided free business advisory services to over 19,000 farmers through the Farming Resilience Fund, assisting them in navigating agricultural transitions.
• Launched fully funded annual veterinary visits on farms via the Sustainable Farming Incentive Annual Health and Welfare Review, now available to non-BPS registered farmers.
• Distributed over £120 million in grants through the Farming Investment Fund and committed £120 million to 185 projects as part of the Farming Innovation Programme, enhancing innovation, productivity, animal health, and environmental standards.
• Conducted reviews of food supply chains to ensure fair remuneration for farmers and growers, with upcoming regulations anticipated by 2024.
• Implemented legislation that allows farmers to continue using EU-approved seed treatment pesticides and access more affordable pesticides from the EU starting in late 2023.
• Supported tenant farmers by proposing a Tenant Farming Commissioner as recommended in the independent Rock Review, soliciting input from the agricultural community.
• Appointed five additional agri-food attaches to amplify the UK’s agri-food exports, contributing £24 billion to the British economy.
• Improved the regulatory framework, resulting in more effective and supportive on-farm visits. Utilizing innovative remote monitoring techniques has led to a decline in penalties for minor infractions.

Farming Scheme Update:

• Almost half of the farmers are engaged in our Environmental Land Management schemes.
• As of February 20, we have received over 11,000 applications for the SFI, managing 123,000 hectares of arable land without insecticides, 53,000 hectares of low input grassland focused on sustainability, and 8,000 kilometers of hedgerows under positive management.
• Over 35,000 active Countryside Stewardship agreements were recorded across England in January 2024—a 112% increase since 2020.
• We have initiated more than 55 Landscape Recovery projects, working towards restoring over 600 kilometers of rivers, conserving more than 260 flagship species, restoring more than 35,000 hectares of peatland, creating over 7,000 hectares of woodland including temperate rainforests, and benefiting over 160 protected sites, involving collaboration among more than 700 farmers and landowners.