Sustain reaction to drought support package for farmers

The Government has announced a £65 million package of support for farmers affected by drought, alongside measures to provide greater flexibility within the Sustainable Farming Incentive (SFI). The announcement comes as much of England experiences drought conditions following an exceptionally hot and dry summer, with farmers and growers facing reduced yields, rising costs and increasing pressure on their businesses.

The package includes an additional £50 million for the Sustainable Farming Incentive (SFI), up to £15 million for on-farm reservoirs, and greater flexibility within environmental schemes to help farmers cope with the immediate impacts of drought while building resilience for the future.

Healthy soils and thriving ecosystems play an important role in helping farms retain water, cope with periods of low rainfall and maintain food production during extreme weather. Investment in soil health, nature recovery and climate resilience is therefore widely regarded as an important part of ensuring the long-term security of the UK's food supply.

Healthy soils rich in organic matter act like natural water storage systems, helping farms cope with prolonged dry periods while also improving resilience to heavy rainfall and flooding. Research has found that for every 1% increase in soil organic matter, an acre of soil can hold tens of thousands of additional gallons of water, highlighting the critical role soil health plays in climate resilience. Building resilience into farming systems now will be essential to maintaining food production in the decades ahead.

Alys Bannister, Sustainable Farming Campaign Manager at Sustain, said:

"The additional investment in the Sustainable Farming Incentive is welcome because healthy soils are some of the most important infrastructure we have for climate resilience. Soils rich in organic matter can retain more water during dry periods, reduce flood risk during wetter months, and help farms remain productive as weather extremes become more common.

Support for new on-farm reservoirs is also welcome where they are planned sustainably and deliver wider benefits for nature and local catchments. However, the best defence against drought is not just capturing and storing more water, but investing in farming systems that help keep water in the landscape in the first place.

It's important to be clear that this is not significant new Treasury investment in farming, but a reallocation within an already stretched farming budget. The Climate Change Committee has been clear that we need to invest in agricultural adaptation now. If we are serious about food security in a changing climate, we need long-term investment that helps farmers transition to more resilient agroecological farming systems and equips them for the extreme weather that is increasingly becoming the norm."

The package also includes support for new on-farm reservoirs and greater flexibility within environmental schemes. Sustain welcomes investment in water storage where reservoirs are planned sustainably and deliver wider benefits for nature and local catchments. However, reservoirs are most effective when combined with wider measures that improve the ability of landscapes to retain water naturally. Investing in soil health, agroforestry, hedgerows, wetlands, and other agroecological approaches can help reduce the impacts of drought while delivering benefits for nature and local communities.

Georgina Edwards, Sustainable Farming Campaign Officer at Sustain, said:

"The news that the government has unlocked more investment is very welcome, amid record-breaking temperatures and most of England experiencing drought. Healthier soils have better water retention, meaning that farms can be more resilient during periods of low rainfall.

"Today's announcement is a positive indication that the government is serious about making our domestic food production better able to adapt to weather extremes in the future."

Farmers participating in environmental schemes will also benefit from temporary easements where drought conditions have made it difficult or impossible to deliver certain actions as originally agreed.

While temporary easements are a practical tool during extreme events, they should not become routine practice, as environmental agreements are an important tool for improving environmental outcomes and strengthening climate resilience. Frequent departures from agreed actions could undermine the long-term effectiveness of these schemes and the outcomes they are designed to deliver.

Joss MacDonald, Public Affairs Manager at Sustain, said:

"The climate is changing whether we're ready or not. If we want to secure our food supply and keep prices down, we need long-term investment in the sustainable and resilient farming that builds up the soil our food depends on.

We are now experiencing the third drought in five years, with extreme weather becoming the new normal. Rather than responding to each crisis as it hits, we can plan ahead and build resilience now. That's why Sustain and more than 100 organisations have written to the Prime Minister calling for a Good Food Bill, bringing together action on food, farming, health and the environment backed by clear national targets."

This summer's drought has shown that resilience cannot be built through crisis response alone. Sustain is co-leading the Good Food Bill campaign. In July 2026, more than 100 organisations wrote to the Prime Minister calling for a Good Food Bill to establish cross-government responsibility for food policy and statutory food system targets.