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UK Budget 2024: NFFN welcomes Government’s agriculture funding boost as essential for food security and climate resilience

United Kingdom
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policy
Defra
ELM
Environmental Land Management scheme
Farming budget
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In response to the Autumn Budget announcement, the NFFN highly supports the Government’s decision to increase agricultural spending, as it is a vital and timely support for a sector facing the urgent challenges of climate change.  

Following weeks of predominantly concerning headlines regarding potential budget cuts, we are pleased with the news of Chancellor Rachel Reeves’ decision to invest in agriculture. This is an opportunity for the sector to prepare for future challenges and the impact of climate change.

It is a relief that the Government has recognised the importance of making farming more environmentally friendly to address critical issues such as food security, resilience against an uncertain future, and the alarming declines in nature and biodiversity.

Increasing funding and prioritising nature-friendly farming will help put agriculture on a more sustainable footing as climate change presents ongoing challenges.

Our CEO, Martin Lines, said: “This decision by the Government is better news than we could have hoped for in the lead-up to the Budget. We are pleased that the Government has listened to us and that the Chancellor has recognised how crucial maintaining investment in nature-friendly farming is and how food production and nature’s recovery go hand in hand.

“This maintained funding is a much-needed boost for a sector that greatly needed confidence from the Government. Increasing funding and prioritising nature-friendly farming will help put agriculture on a more sustainable footing and enable the changes required to continue feeding our nation as climate change presents ongoing challenges."

A commitment to opening applications for the Higher Tier of Countryside Stewardship (CS) early in 2025 from the Government was particularly pleasing, and we also welcome the move to pay £60m through the Flood Recovery Fund to farmers affected by extreme weather events last winter.

We urgently need fundamental changes to make our farm businesses financially resilient, enabling farmers to continue producing food amid the climate crisis and protecting our long-term food security.

While the Government deserves congratulations for this funding commitment, there is still much work to be done to drive the transition to nature-friendly farming at scale, including further necessary changes to England’s Environmental Land Management schemes (ELMs).

Martin Lines said: “Currently, the majority of ELMs funding is directed towards the schemes with the lowest ambitions for nature, placing minimal demands on farmers. This must change, with more ambitious schemes receiving sufficient funds to realise their full potential.

“I particularly welcome the move to open up the Higher Tier of CS, as there have been many problems with it and it has caused a lot of worry, especially for upland farmers for whom balancing environmental outcomes and food production is vital.”

However, it must be flagged that some farm businesses will now have to urgently rethink their plans and could find themselves struggling as the phaseout of land-based payments is quickened, while there is also considerable concern that the Government’s changes to agricultural property relief will require careful tax planning and could have a particularly significant impact on family farms. 

In addition, while the Government’s spending boost is welcome, it still falls short of the £5.9bn per year recommended in the Scale of Need report. We would also like to see commitments from the devolved governments in Wales, Scotland and Northern Ireland to ensure nature-friendly farming is rolled out at scale right across the UK.

Martin said: “We urgently need fundamental changes to make our farm businesses financially resilient, enabling farmers to continue producing food amid the climate crisis and protecting our long-term food security. A healthier farming budget will be instrumental in achieving this, but now is not the time for ministers to hold back.”