Government Announces Additional Drought Support Package for Farmers
The Government has announced a £65 million package of support for farmers in England in response to the ongoing drought. The package combines additional funding, planning reforms and temporary scheme flexibilities to help businesses manage the immediate impacts of prolonged dry weather and improve resilience to future droughts.
Greater Flexibility for Agri-environment Schemes
Temporary adjustments are being introduced across the Sustainable Farming Incentive 2026 (SFI26), Countryside Stewardship (including legacy agreements) and Higher Level Stewardship agreements to help farmers respond to drought conditions without losing payments. These allow farmers to:
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Cut and graze land under agreement to address shortages of grazing, fodder and bedding.
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Create firebreaks to reduce the risk of wildfires.
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Delay the establishment of actions where dry conditions have prevented planting.
Eligible agreement holders in England can make use of these temporary adjustments without losing payments, subject to the conditions set out by the Department for Environment, Food and Rural Affairs (Defra).
Additional Funding for SFI26
An additional £50 million is being made available for Window 2 of the Sustainable Farming Incentive 2026 (SFI26), increasing the total budget for the window to £230 million. Window 2 of the scheme is due to open in September.
Support for On-farm Reservoirs
Defra will reopen the Water Management Grant this autumn, providing up to £15 million to support the construction of on-farm reservoirs.
Easier Reservoir Development
The Government has also committed to making it easier to develop on-farm reservoirs. Changes to the National Planning Policy Framework will encourage local authorities to support agricultural infrastructure, including reservoirs, while updated planning guidance is expected later this year. Existing planning arrangements and permitted development rights for on-farm reservoirs are also under review.
Improved Access to Water
The Environment Agency (EA) will prioritise requests for short-term abstraction licence variations during drought conditions. This is intended to provide farmers with greater flexibility to access water where environmental conditions allow, while maintaining appropriate environmental protections.
In addition, the EA plans to simplify applications for long-duration reservoir abstraction licences to support future investment in on-farm water storage.
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