NFU Welcomes UK Drought Aid but Warns Crops Are 'Failing' Amid Cashflow Crisis

The National Farmers' Union (NFU) has welcomed the UK government's new drought relief measures but warned that Britain’s farming sector is facing a "huge crisis of cashflow" as an extended dry spell bites into harvests and water supplies.

Relief Package: What Was Announced

Prime Minister Andy Burnham has pledged up to £15m to help farmers construct on-site reservoirs. In addition, the government will add £50m to the Sustainable Farming Incentive (SFI) 2026 Window 2, bringing this year's Department for Environment, Food and Rural Affairs (Defra) funding for the scheme to £290m. Officials say the measures are intended to help farmers adapt to the risk of future droughts.

NFU Reaction

The NFU said the extra funding will help members "better manage the severe pressures they are battling caused by sustained hot, dry weather and a continued absence of rain." Prolonged dry conditions have triggered an "incredibly early harvest and historically low yields," the union added, forcing many dairy and livestock producers to draw on winter feedstocks to keep animals fed.

Tom Bradshaw, NFU President: "Providing this relief package and meeting with farmers to hear first-hand from them, it's clear the Prime Minister has recognised the serious impacts this drought is having on farmers and on our ability to water crops, feed livestock and keep food production on track. The £65m of investment into the Sustainable Farming Incentive (SFI) and water infrastructure is very important strategic support that will benefit farmers. However, we are experiencing a huge crisis of cashflow and confidence across all sectors and urgent support will be needed for farmers who are feeling that pressure now, so they are still producing food next year."

NFU Deputy President Paul Tompkins emphasised that shifting weather patterns mean the UK cannot rely on steady rainfall year-round and urged investment in national water infrastructure to capture and store water in times of plenty. Vice-President Robyn Munt described the additional SFI funding as "crucial," highlighting benefits for soil-health measures and pledging continued NFU engagement with Defra to ensure the scheme delivers.

Crop Impacts and Wider Analysis

The NFU reported that potatoes, sugar beet and other field crops are already "failing" in some areas because of moisture stress. Separately, the think tank Green Alliance estimated that replacing half the UK's imported fruit and vegetables with homegrown produce could add about £1.9bn to farmgate receipts and raise food self-sufficiency to roughly 66%. Green Alliance also noted that domestic fruit and vegetable production has fallen around 16% since 2015, increasing exposure to extreme weather and disruptions overseas.

Warnings from other analysts are also stark. Drawing on provisional Agriculture and Horticulture Development Board (AHDB) figures, the Energy and Climate Intelligence Unit (ECIU) has suggested that the country's cereals and oilseeds harvest could fall to about 19.5 million tonnes if current yield assumptions hold—potentially the worst harvest on record since detailed statistics began in 1984.

Next Steps and Uncertainties

While the new funding is intended to build resilience, the NFU says more detail is needed on how the package will be deployed and which farmers will access urgent cashflow support. Industry leaders argue that short-term relief must be paired with strategic investment in water capture, soil health and other measures that reduce vulnerability to recurring droughts.

Disclosure: "NFU applauds UK drought aid but says some crops already 'failing'" was originally produced by Just Food, a GlobalData-owned brand.