PM Andy Burnham announces £65m in drought support for farmers

Farmers in England are set to receive an extra £65 million in government support as drought conditions continue to damage crops and put pressure on water supplies. Prime Minister Andy Burnham announced the funding on Saturday following the driest July on record in England and Wales.

The package will provide additional support for sustainable farming, help farmers develop on-farm reservoirs and make it easier to access water during periods of drought. “Today we’re putting £65m more into supporting farmers through this drought and preparing for the summers ahead,” Burnham said on X. He added that food production was a matter of national security and said farmers should not have to bear the effects of a changing climate alone. July 2026 was the driest and sunniest July on record for England and Wales, with just 10% of the long‑term average rainfall in England, according to the Met Office.

Where will the money go?

The largest part of the package, £50 million, will go towards the Sustainable Farming Incentive (SFI), bringing its total budget to £290 million. The additional funding will be directed towards areas facing the greatest impact from the drought. Farmers who receive SFI payments to manage parts of their land for environmental purposes will also be given greater flexibility to cut or graze those areas where a lack of grass is creating problems, without losing their payments. A further £15 million will support the construction of on-farm reservoirs, allowing farmers to store water for use during future dry periods. The government will also simplify arrangements governing how much water farmers can take from the environment and speed up the process for obtaining water abstraction licences. Officials have announced support for nine new reservoirs, while five existing reservoirs currently have exceptionally low water levels.

Drought threatens UK harvest

The funding comes as farmers face declining crop yields and poorer-quality produce. Some have been forced to bring in their crops earlier than usual, while others are reporting lower yields as the prolonged lack of rain affects production. A recent analysis cited by Reuters found that Britain's cereal harvest could be the worst since comparable records began in 1984.

Farmers call for longer-term investment

The Country Land and Business Association welcomed the government's measures but warned that the support would not be enough to address the wider problem. Its president, Gavin Lane, described the package as a temporary measure and said the £15 million for reservoirs would cover only a fraction of what is required. “The announcement that the government will make it easier to build on-farm reservoirs is a positive step, but the £15m made available will fund a fraction of the reservoirs we need,” Lane said. He also warned that farmers would continue to bear most of the cost of building reservoirs while already dealing with high operating costs and additional tax pressures. The government has been developing a broader response to the drought following a Cobra meeting on extreme heat, wildfires and water shortages earlier this week. Burnham has also called for greater investment in clean energy and said the country needs to adapt to changing climate conditions.