New Drought Support Announced for Farmers

20 August 2026

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Defra has announced new drought support measures to help farmers improve resilience during prolonged dry weather.

With dry weather continuing to affect farming businesses across England, Defra has announced a package of support measures intended to help farmers manage immediate pressures while improving resilience for the future.

For manywater availability water availability has become one of the most significant challenges facing agriculture, with this year’s drought affecting crop production, livestock management and environmental scheme commitments.

The latest announcements contain several measures that could ease some of the pressure and provide practical benefits for the farming community.

 

Support for On-Farm Water Storage

Water is a critical resource for agricultural production, but periods of drought can quickly expose the limitations of existing infrastructure. Reliance on abstraction during the driest months can become increasingly difficult, while the impact on crops, livestock and farm profitability can be substantial.

Defra has announced up to £15 million of funding for on-farm reservoirs, expected to become available later this year. This funding is expected to be particularly relevant to arable and horticultural businesses that rely on irrigation.

While a new reservoir is a substantial investment and requires careful planning, it can provide long-term benefits where the scale of the operation and local water resources make it viable.

 

Easier Planning for Reservoir Development

Alongside new funding, the government has confirmed plans to reduce planning barriers for agricultural infrastructure, including on-farm reservoirs. Updated guidance is expected to provide greater clarity for farmers wishing to invest in water storage projects and strengthen long-term drought resilience.

 

Improved Access to Water

The Environment Agency will continue to offer support to farmers facing water shortages, including temporary flexibility around abstraction licences where appropriate.

Measures may include extending abstraction periods, earlier reservoir refilling and increased flexibility around water use, subject to environmental considerations.

 

Greater Flexibility for Environmental Schemes

One of the most significant changes is the introduction of temporary adjustments to Environmental Land Management (ELM) agreements.

Eligible farmers will have greater flexibility to graze and cut land within agreements where drought conditions have created shortages of grazing and forage.

There is also additional flexibility around creating firebreaks and extending timescales for establishing scheme actions where dry conditions make planting difficult.

Importantly, these adjustments will not affect agreement payments.

 

Additional Funding for the Sustainable Farming Incentive

Defra has increased funding for the Sustainable Farming Incentive (SFI) by a further £50 million, taking the available budget for new agreements to £290 million.

The additional funding is intended to help more farmers access support while encouraging practices that improve drought resilience, including measures that enhance soil health and water retention.

For businesses considering whether to enter SFI, this may present further opportunities to secure funding while introducing practices that support long-term farm sustainability.

  

Looking Ahead

While these measures are designed to help farmers navigate current drought conditions, they also signal an increased focus on long-term water resilience across UK agriculture.

Businesses may wish to review their water management strategies, assess future infrastructure requirements and explore available funding opportunities as details emerge.

For many farming businesses, looking ahead now could help build greater resilience to increasingly unpredictable weather conditions in the years ahead.

 

Sources:

Department for Environment, Food & Rural Affairs – GOV.UK

New drought support for farmers – Farming

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