UK drought farmer support package
Analysis based on 7 articles · First reported Aug 14, 2026 · Last updated Aug 15, 2026
The drought and support package are likely to impact agricultural commodity prices and food inflation, with Shore Capital warning of rising costs and increased import reliance. The government's funding may provide some relief to farmers but is seen as insufficient by industry groups, potentially affecting food supply chains and supermarket prices.
In response to the driest July on record in England and Wales, Prime Minister Andy Burnham announced a £65 million support package for farmers on Saturday. The package includes £50 million additional funding for the Sustainable Farming Incentive (SFI), bringing its total budget to £290 million, and £15 million for on-farm reservoirs. The government also pledged to simplify water abstraction licensing, increase flexibility in environmental schemes, and reduce planning barriers for reservoir construction. The announcement follows a COBR meeting chaired by Burnham on extreme heat, wildfires, and drought. Almost three-quarters of England is in drought status, with 27 million people subject to hosepipe bans. The package aims to help farmers get water to crops, keep livestock fed, and continue environmental work. Critics, including the Country Land and Business Association, argue the funding is insufficient. Shore Capital warned of the UK's worst food security crisis in decades, with wheat yields down 14% and potential food inflation rising to 5%.
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