The Government has announced that the Agricultural Budget for next year will be £2.4 billion, which according to Defra is the ‘largest ever budget' dedicated to providing sustainable food production and environmental benefits, with £1.8bn invested into Environmental Land Management (ELM) schemes.
'Tipping point'
But some in the farming industry are concerned 2025/26 Budget falls short of what is needed and was at a 'tipping point' of how effective it could be in meeting the desired outcome of 'balancing food security, supporting farm efficiency, and delivering environmental benefits.'
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AHDB economics and analysis director David Eudall said: "The funding pot for agriculture in the UK has remained constant at £2.4 billion since the 2019-2024 parliament. "During this time, inflation has led to a 44% increase in farm costs, while the agriculture budget remains the same."
£2.4 billion
Nick Mullins, chartered surveyor and environment advisor for H&H Land & Estates raised concerns that there could be further budget cuts.
"It has now been announced this will be £2.4 billion for the next financial year, which is a reduction from previous years, and the wording of the announcement seems to pave the way for changes in future years."
Autumn Budget
While the figure falls short of the £4bn demanded by the NFU, the news could also be seen as one positive in this week's raft of announcements for the industry. Concerns had been raised about future funding after it was found the previous Government had accumulated an underspend of £358 million, but the Minister for Food Security and Rural Affairs Daniel Zeichner said the figure reflected the importance of agriculture to the Government.
He said: "Farming and food security are the foundations of a healthy and resilient economy and environment. "Our commitment to farmers and the vital role they play to feed our nation remains steadfast. "That is why this Government will commit to the largest ever budget directed at sustainable food production and nature's recovery in our country's history, enabling us to keep momentum on the path to a more resilient and sustainable farming sector."
Martin Lines, Nature Friendly Farming chief executive, said the decision was 'better news than we hoped for ahead of the Budget.'
He said: "We are pleased that the Government has listened to us and that the Chancellor has recognised how crucial maintaining investment in nature-friendly farming is and how food production and nature's recovery go hand in hand."
Defra
Mr Zeichner announced that ELMs will remain at the centre of its offer for farmers, with the Sustainable Farming Incentive, Countryside Stewardship Higher-Tier and Landscape Recovery all continuing. He also said the Government planned to support farmers impacted by last year's flooding, paying out £60m for those affected by ‘unprecedented rainfall and flooding' through the Farming Recovery Fund.
Food security and environment
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Nature-friendly farming
But Wildfarmed co-founder Andy Cato said funding for nature-friendly farming should not be treated as a subsidy.
"Supporting farmers to deliver a resilient supply of nutritious food, clean water and nature recovery, offers a fantastic return on investment. The National Food Strategy put the environmental, health and nature costs of UK food at £70 billion a year. The farming budget is less than 3.5% of that."
Devonshire based organic dairy farmer Adam Westaway said: "The farming budget has been stuck in a ‘muddy wet' rut for an age, in real terms our support has been cut and comes with delivery costs attached. "Defra has failed to deliver this in the past and are now expected to deliver this on a 2% cut in their own budget. Schemes need simplicity for ease of delivery and adoption."
