UK Government Unveils £65 Million Drought Aid Package to Support Farmers Amid Crisis

Energy and Climate Intelligence Unit (ECIU) projections indicate drought could push crop yields and farm revenues lower than forecast, with oilseed and cereal yields potentially 2.5 million tonnes below predictions (about £400 million in lost revenue), and later estimates suggesting up to £550 million shortfall; 2026 crop production is expected to fall to about 18.5 million tonnes.
An emergency alert was sent to millions of smartphones in England and Wales warning against “any activity that could start a fire,” including the use of disposable barbecues, amid the heatwave and drought.
Officials are pursuing a cross-government response to drought that includes easier access to water and licensing, and measures that would allow farmers to cut or graze grass in scarce conditions without losing environmental payments.
Prime Minister Burnham is due to visit a drought-hit farm in the South West to highlight the real-world impact on yields and costs, underscoring the need for swift government action.
Bloomberg reports that the drought package includes subsidies flexibility—farms will not lose subsidies if they need to use protected grass areas as feed, plus easier water access and faster licensing for on-farm reservoirs, funded from Defra’s existing budget.
Prime Minister Andy Burnham has unveiled a £65 million aid package for drought-hit farmers as two-thirds of England remains in drought during the driest July on record, according to ITV News. The package includes a £50 million boost to the Sustainable Farming Incentive — bringing its total to £290 million — and £15 million for on-farm reservoirs to help farmers store water through dry spells.
The announcement followed an emergency Cobra meeting and a nationwide smartphone alert warning millions in England and Wales against "any activity that could start a fire," including disposable barbecues, GB News reported. Burnham said farmers "should not have to carry the risk of climate change alone."
The £50 million Sustainable Farming Incentive boost is designed to keep water flowing to crops and livestock while supporting nature recovery, according to The Independent. The separate £15 million reservoir fund will help farms build on-site water storage, with officials promising faster licensing and easier access to water resources where needed.
GB News reported that the package also includes key subsidy protections. Farms will not lose environmental payments if they need to cut or graze grass on protected land to feed livestock in scarce conditions. Officials described the measures as a cross-government response covering farming, water supply, and infrastructure.
The financial damage is severe. Projections from the Energy and Climate Intelligence Unit show oilseed and cereal yields could fall 2.5 million tonnes below predictions, costing around £400 million in lost revenue. Later estimates put the shortfall as high as £550 million. Total UK crop production in 2026 is expected to drop to about 18.5 million tonnes, according to Yahoo News.
The Independent warned that many farmers are already at "breaking point" due to wildfires, poor harvests, and rising costs. Burnham is due to visit a drought-hit farm in the South West to see the damage firsthand, highlighting the real-world impact on yields and farm incomes.
Labour figures and farming groups have pushed back on the timing of the response. The Independent reported that critics argue the government moved too slowly as conditions worsened through July. Farmers called for the state to absorb more of the financial risk tied to extreme weather events driven by climate change.
The £65 million package is funded from Defra's existing budget, meaning no new money is being created, according to Yahoo News Canada. That detail has fuelled frustration among some in the farming sector who say the scale of the crisis demands a larger and faster commitment from Westminster.
The drought has turned large parts of England into a fire risk. The government sent an emergency alert to millions of smartphones warning against lighting fires, using disposable barbecues, or doing anything that could spark a blaze, ITV News reported. Two-thirds of England is currently classified as being in drought.
Cobra — the government's emergency committee — met to coordinate the national response. Burnham chaired the session and said the government would pursue flexible, practical measures to protect food production and national security. Officials framed the aid package as a first step, not a final answer, to a recurring crisis.
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