Wet weather adds further strain amid budget uncertainty

A soaking September has compounded the problems for farmers alongside the ongoing uncertainty of the Defra farming budget and delayed rollout of several key support schemes, the NFU has said.

Speaking at the NFU’s fringe event during the Conservative Party’s autumn conference, the union’s deputy president David Exwood said record low farmer confidence was being hit further by another wet autumn and ongoing silence from the Labour government on the future farming budget.

See also: Labour conference: Has the party lost its mojo already?

“We have had another inch of rain at my farm overnight at Sussex. It’s raining all day. There’s a real moment of peril for those who were really impacted by the wet weather of last autumn,” Mr Exwood told delegates at the event in Birmingham on Monday 30 September. 

“They haven’t received any money from the flood recovery fund and we are now running into another incredibly wet autumn that is going to threaten their profitabilty for next year again.” 

The upcoming Labour government’s first budget on 30 October is stirring fears that funds intended for agriculture, such as a £358m Defra underspend, could be redirected to address a £22bn shortfall in public finances.

Mr Exwood warned that the ongoing wet weather and the slow delivery of Defra’s Sustainable Farming Incentive (SFI) scheme could threaten farm profitability even further.

“If the underspend that’s there turns into an even bigger crisis because the delivery of RPA [Rural Payments Agency] is not happening, what we’re seeing now could get even worse,” he said.

Farmers are also anxious about future trade deals, which might negatively impact UK agriculture.

“This is a worrying time,” Mr Exwood said. “I’m normally someone who’s full of confidence and optimism, but it’s challenging.”

The new Labour government has repeatedly stated its commitment to continuing the rollout of the SFI, which is the first component of Defra’s Environmental Land Management (ELM) programme.

But concerns remain about the delayed transition from older schemes and the overall effectiveness of Defra’s delivery of SFI 24.

Tory commitment

Shadow Defra secretary Steve Barclay acknowledged that the Conservatives might have alienated some of the farming community by prioritising environmental issues over food production.

However, he pointed out that Rishi Sunak’s Conservative government had at least committed to rolling over unspent farming budget funds – something Labour has not yet guaranteed.

Political analyst Patrick English, from pollsters YouGov, noted Labour’s struggle to adjust to government after a 14-year absence and highlighted the party’s growing rural representation, which may influence future policies on farming and rural affairs.

The Labour government has vowed to restore stability and confidence in the sector by introducing a “new deal” for farmers to boost rural economic growth and strengthen food security alongside nature’s recovery.