Since details of the UK Government’s Budget were published at the end of October, barely a week has gone by where the future of farming has not made headline news. Uncertainty for family farms following changes to Agricultural Property Relief, how farm businesses will cope with an accelerated withdrawal of EU-era payments, or whether new support schemes will be online in time to help those farmers most at risk have all contributed to a growing sense of unease amongst farmers. 

This week, Defra announced another decision that will place further pressure on farmers looking to shift to nature-friendly practices, with an immediate pause on capital grant applications due to budget constraints.

These grants are essential to support farmers to carry out actions such as planting hedgerows and protecting waterways, and so the removal of this support without warning has led many to ask – what is the Government’s plan here? 

Currently, it doesn’t seem like there is much of one. Many of the issues that Defra are facing are of their own creation. Removing caps on capital grants in 2023 means that Defra is now forecast to  spend 125% more on capital grants this year than in 2022/23. The new Sustainable Farming Incentive offers attractive payment rates for basic actions with no mechanism to allow Defra to control spending, meaning high uptake of this scheme could derail spending in other critical schemes such as Countryside Stewardship and Landscape Recovery. Failure to meaningfully tackle issues around fair pricing in the supply chain – paying farmers properly for the food they produce – means that the majority of farmers are overly reliant on public money to run viable farm businesses.  

This all means that Defra has left itself poorly equipped to manage with what constitutes a restrictive budget. The £5 billion over two years for farming announced in the budget still represents a significant shortfall in what is required for Defra to do everything it needs to do. By making decisions to remove caps on capital grants, develop an open free-choice Sustainable Farming Incentive, and rolling over legacy EU agreements, Defra has effectively written a cheque they can't cash and are now scrambling. This is understandably causing a significant degree of uncertainty and concern with farmers. 

It is also hugely concerning for nature’s recovery. Without the development of effective new agri-environment schemes, there is no chance that we will halt and reverse the decline in wildlife, which has left one in six species at risk of extinction. Farmland accounts for more than two thirds of England, so failure to improve the state of nature here will render efforts elsewhere wasted. The management of the farmed landscape also has a huge impact on water quality, flooding, and drought risk, impacting farmers themselves as well as wider society. Funding through stewardship schemes is vital to effectively manage protected sites for nature - critical national assets for biodiversity and the springboards for nature’s recovery at scale - many of which are in poor condition and need further support.  

It is therefore imperative that the UK Government put forward a predictable, long-term and sustainable plan to support farmers along the transition to nature-friendly farming. Farmers who are working towards sustainable practices and achieving high levels of environmental outcomes on their farm deserve to have certainty that there will be public support through agri-environment schemes. This was the promise in 2020 when the landmark Agriculture Act enshrined the principle of public money for public goods, and many farmers are understandably asking where that support is now. 

In a blog following the Budget, The Wildlife Trusts set out some key questions Defra need to answer to get the farming transition back on track and restore trust. Piecemeal announcements that sow doubt and frustration are creating a storm of uncertainty for farmers who are struggling to see how their business fits into future policy. The UK Government must show urgent leadership in setting a course for the future of farming in England, which supports farmers whilst also achieving the outcomes for nature and climate that are essential to secure a prosperous future for all of us.