More than £2.7 billion will be invested in sustainable farming and nature recovery each year from 2026/27 to 2028/29, according to the Department for Environment Food and Rural Affairs (Defra).
According to the department, this represents the most nature-friendly settlement in history.
The support for farm profitability, food production, and nature recovery, will be a 150% increase in 2028/29 from current spending on environmental causes in agriculture, according to Defra.
Funding will average £2.3 billion a year, with farms benefitting through the Farming and Countryside Programme.
Up to £400 million from additional nature schemes – such as tree planting and peatlands – will also be available.
According to the department, a record number of farm businesses are now taking part in environmental land management schemes (approximately 50,000), with close to half of all farmed land in England now managed under these schemes.
See the chart below for an overview of the funding:
Indicative funding (£ million) 2026–27 2027–28 2028–29 Delinked payments 20 20 0 Environmental land management schemes 1,950 1,950 2,000 Other (productivity, innovation, transition) 350 300 250 Farming and Countryside Programme 2,320 2,270 2,250 Nature schemes 450 450 450 Farming and Nature total 2,770 2,720 2,700
In a bid to increase spending on environmental land management schemes, the department will begin to phase out delinked basic payments.
Farm businesses who previously received the largest delinked basic payments will see the biggest overall reductions.
For delinked payments in 2026 and 2027, Defra plans to cut 98% to the first £30,000 of any delinked payment, with a 100% reduction on any payment over £30,000.
NFU reaction on Defra spending
Responding to Defra’s announcement, the National Farmers Union (NFU) said that despite the £2.7 billion in funding, there will be a £100 million cut to farming and countryside programmes, including the Sustainable Farming Initiative, Countryside Stewardship, Landscape Recovery, and capital grants.
NFU President, Tom Bradshaw said; “From what we can see so far, the £100 million cut to farming means farmers and growers will need to do more with less.”
He feels that this is a tough blow as the agriculture budget has already been hit by inflation in recent years, leading to a significant reduction in its spending power.
Bradshaw added; “The devil will be in the detail. And it’s essential that the Environmental Land Management schemes will be accessible for all farmers to get involved.
“We still need more details and the NFU will continue to work with DEFRA as it makes important decisions about how this money will be spent.”
He finished off by expressing his disappointment in the chancellor as she failed to reverse the family farm tax bill, which Bradshaw said will devastate families unable to afford the levy.
