Next year’s food production could be at risk without immediate government action, according to the NFU.
The union delivered the warning today (21 August) as it outlined two “key investments” to support British farmers and growers who “are at a financial crisis point” as a result of the UK’s worst drought in 50 years and the ongoing war in the Middle East.
The measures comprise a government-backed, interest-free ‘Keep Britain Growing Loan’, which would be linked to losses caused by the drought, and a fallen stock scheme for farmers whose livestock has been affected by bluetongue.
It comes just days after Downing Street unveiled a raft of drought support measures, among them temporary adjustments to Environmental Land Management agreements, an extra £50m for the Sustainable Farming Incentive 2026 Window 2 and action to make it easier to build reservoirs.
“We have brought farming organisations together to agree the urgent action and investment needed to keep businesses afloat, protect next year’s food production and safeguard long-term food security,” NFU president Tom Bradshaw said.
“Defra’s strategic commitments last week were a welcome and important step towards building greater water and long-term resilience on farms,” he added. “But farmers face an immediate crisis in cashflow and confidence.
“Rain has come too late for lost harvests and slashed yields, while livestock farmers are dealing with the worst bluetongue outbreak to reach our shores.”
Outlining the potential financial impact of the prolonged hot and dry weather on farmers, the NFU said the indicative gross production value loss of wheat was approximately £370m.
Further, the price of purchasing forage due to stunted grass growth could be as high as £34m.
Moreover, pointing to the effects of the US-Iran War, the NFU said the national nitrogen fertiliser bill could increase by £303m a year with the red diesel bill also set to rise by £200m.
“We’re hearing daily about the cashflow crisis facing farmers. Whether it’s the grower in Buckinghamshire who’s down £220,000 on their usual harvest, or the dairy farmer in Dorset spending an extra £500 a day on fodder to feed their cows, the balance sheets are not adding up,” Bradshaw added.
“Farmers in England are now without the breathing space once provided by direct payments and are increasingly exposed to geopolitical shocks, as well as repeated weather extremes, animal disease and global wars,” Bradshaw added. “Action is needed now to secure the future of British farming and enable the next generation to keep producing the nation’s food.”
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