NFU urges government to boost UK farming budget to £5.6bn

The National Farmers’ Union (NFU) used the annual Back British Farming Day to demand a “renewed and enhanced” funding pot in the new Labour government's first Budget speech on October 30.

Under the previous Tory administration, there was a £2.4bn annual agriculture budget for England, which was being shifted away from mainly land-based EU-era subsidies to a new system of environmental incentives.

But the NFU says an increased budget of £4bn for England - equating to £5.6bn UK-wide – is now "essential" to give farmers the confidence to invest in the future, produce sustainable and affordable food, and deliver for nature, energy security and climate-friendly farming.

Tom Bradshaw, president of the National Farmers' Union (Image: NFU)

NFU president Tom Bradshaw said this came at a time of "huge challenges" for the farm sector.

"Over the past 18 months we have seen a collapse in farmer confidence, driven by record inflation, falls in farm income and a changing climate with unprecedented weather patterns delivering relentless rain which left thousands of acres of farmland under water," he said.

“While in opposition we heard consistently from Labour that 'food security is national security'. We now need to see those ambitions realised.

"Today we’re calling on government to truly value UK food security by delivering a renewed and enhanced multi-annual agriculture budget of £5.6bn on October 30."

Tim Papworth is NFU county chairman for Norfolk, where farmers play a major part in the £1.4bn contribution which food production makes to the East Anglian economy.

“Farming is vital to Norfolk and farmers here are doing great work all year round to feed the nation, manage our beautiful Norfolk rural environment and contribute towards efforts to deliver national food security," he said.

“Farming also makes a major contribution to the economy, here in Norfolk and across the country.

“It continues to be a very challenging time for our farmers, who are tackling numerous issues including extreme weather, rural crime, sharp rises in energy costs and, right now, the bluetongue virus.

“By increasing the agricultural budget, the government would enable British farmers to deliver national food security and continue to deliver for the economy and for the environment.”

Defra's environment secretary Steve Reed said: “The new government will restore stability and confidence in the sector, introducing a new deal for farmers to boost rural economic growth and strengthen our food security."

Fury over £358m budget underspend

Meanwhile, a £358m underspend in the government's agriculture budget during the last three years has prompted a furious response from farmers.

Defra has published its Farming and Countryside Programme (FCP) annual report which shows a budget underspend of £130m in 2023-2024, £103m in 2022-2023 and £125m in 2021-2022.

The shortfall was described by NFU president Tom Bradshaw as a "kick in the teeth" for farmers who have "faced years of uncertainty and loss of income during the transition from EU subsidies to environmental payments".

He said: “Let’s be clear, this underspend hasn’t happened because the investment isn’t needed. It’s happened because the schemes to replace the Basic Payment Scheme (BPS) have not been completed in time and there are still many gaps and questions unanswered. 

"We have flagged problems with the new Environmental Land Management (ELM) schemes from day one and, despite some improvements, there is a still big gap in spending as the money saved from the continued BPS reductions has sat gathering dust."

Mark Riches, acting East regional director for the Country Land and Business Association (CLA)  (Image: CLA)

Mark Riches, acting East regional director for the Country Land and Business Association (CLA) said the ELM schemes have seen increasing uptake from farmers after a cautious start.

"It is a good programme and now is not the time to falter," he said.

"The UK government is building a new way of working with farmers and land managers to deliver good outcomes for food and for the environment, and we will need our full budget to make it work.

“The government's ambitions are the right ones, but they cannot be delivered on a shoestring. In next month’s budget, the government should commit to an annual £3.8bn farming budget to safeguard the future of our landscapes and rural businesses."

Daniel Zeichner, Defra's new farming minister, blamed the previous Conservative governments for "breaking their promises to farmers".

“They sold them out in dodgy trade deals and then failed to pay them the funds they were promised," he said.

“The Labour government will restore confidence and stability to farmers to boost rural economic growth and strengthen our food security.”