As the UK agriculture sector grapples with ongoing financial pressures, the National Farmers' Union (NFU) has issued a strong call to the government to increase the national agriculture budget to £5.6 billion. This appeal, made during the 2024 Back British Farming Day, underscores the urgent need to support farmers facing the dual challenges of rising production costs and ambitious climate and environmental goals. The NFU argues that a larger, more stable funding pot is essential for ensuring food security, sustainability, and the economic resilience of the farming sector.

The Context: Economic Pressures and Climate Challenges

UK farmers have endured a tumultuous few years marked by rising costs, falling farm incomes, and growing uncertainty about the future. The past year alone has seen record inflation, which has driven up the price of key agricultural inputs, including fertilizers, animal feed, and energy. For many farmers, especially small and family-run operations, these rising costs have eroded profits and reduced their ability to invest in new technologies and sustainability measures.

At the same time, UK farmers are under increasing pressure to meet the government’s ambitious environmental goals, including reducing carbon emissions and improving biodiversity. These goals are largely being pursued through the Environmental Land Management Schemes (ELMs), which reward farmers for implementing eco-friendly practices. However, the NFU and other industry bodies argue that current funding levels are insufficient to support the broad transformation required across the sector.

The £5.6 Billion Budget Proposal

The NFU’s proposal calls for an annual budget of £5.6 billion to be allocated to agriculture across the UK. This figure is based on independent research conducted by the Andersons Centre, which suggests that a budget of this size is necessary to meet statutory environmental and climate goals, while also supporting farmers’ productivity and economic stability.

According to the NFU, the proposed budget would include:

  • £2.7 billion for meeting environmental targets, such as improving soil health, protecting biodiversity, and reducing agricultural emissions.
  • £720 million to support the economic stability of agricultural businesses, especially those in vulnerable regions like upland areas.
  • £615 million to drive productivity and innovation across the sector, enabling farmers to adopt new technologies that improve efficiency and sustainability.

The Case for Increased Funding

The NFU and other advocates of a larger agriculture budget argue that the current funding levels are inadequate for addressing the mounting challenges facing the sector. For years, farmers have relied on subsidies from the Basic Payment Scheme (BPS), which provided direct payments based largely on the amount of land farmed. However, the government is phasing out BPS in favor of the new ELM schemes, which tie payments to environmental outcomes.

The transition has been slow, and many farmers have struggled to access the new schemes. As a result, there has been a significant underspend of the agricultural budget in recent years. In fact, DEFRA recently confirmed that over £358 million of the budget allocated to agriculture went unspent between 2021 and 2024. The NFU warns that this underspend reflects inefficiencies in how funds are distributed and highlights the urgent need for a more transparent and accessible funding model.

The Stakes: Food Security and Sustainability

At the heart of the NFU’s call for a larger agriculture budget is the issue of food security. UK farmers are responsible for producing the raw materials for the country’s £148 billion food and drink sector. However, as production costs rise and farm incomes fall, many farmers are struggling to maintain their output levels. This, in turn, raises concerns about the UK’s ability to produce enough food to meet domestic demand, especially in the face of global supply chain disruptions and climate change.

Moreover, the NFU argues that without increased funding, the UK risks falling short of its environmental and climate targets. Agriculture is a key part of the government’s strategy to reduce carbon emissions and improve the health of the country’s ecosystems. However, achieving these goals requires significant investment in new technologies, infrastructure, and practices. Without a stable and adequate funding stream, many farmers will be unable to make the necessary changes to their operations.

Looking Ahead: Government Response and the Future of UK Farming

The NFU’s proposal for a £5.6 billion agriculture budget comes at a critical moment for the UK farming sector. As the government prepares its autumn budget, there is mounting pressure from both the agricultural and environmental sectors to ensure that the funding allocated to farming is sufficient to meet the country’s food security and sustainability goals.

However, the government faces a difficult balancing act. While there is widespread agreement on the need to support farmers, the UK’s broader financial situation remains precarious. The Treasury is looking for ways to address a £22 billion hole in the public finances, and many departments, including DEFRA, are being asked to make cuts. This sets the stage for a potential clash between the government and farming advocates, as both sides push for their priorities to be reflected in the upcoming budget.

Conclusion: A Critical Moment for the Future of Farming

As the UK moves toward a more sustainable and environmentally friendly future, the role of farmers has never been more important. The NFU’s call for a £5.6 billion agriculture budget reflects the urgent need to support farmers as they navigate rising costs, climate challenges, and a rapidly changing policy landscape. By increasing the agriculture budget, the government has an opportunity to ensure that the UK’s food system remains secure, sustainable, and resilient for generations to come.

However, the outcome will depend on the government’s willingness to prioritize farming in its financial planning. Without sufficient funding, the country risks undermining both its food security and its environmental goals—a risk that few can afford to take.