Dismay at failings and unfairness in flood compensation scheme

Defra’s method for deciding which farm businesses were eligible for flood compensation via the Farming Recovery Fund has been strongly criticised by the Tenant Farmers Association (TFA), after many affected farms were left without support.

Roughly 13,000 farm businesses were eligible for one-off payments of between £2,895 to £25,000, following extensive flood and storm damage during the 2023-24 crop year.

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It is understood that Defra used Met Office satellite data and river gauge readings to identify land severely impacted by flooding.

Rainfall data was also used to identify local authority areas where at least half of the area experienced rainfall at more than 70% above the 30-year average for October 2023 to March 2024.

A scaling factor was then applied and the totals were added together to find eligible hectares per farm, subtracting any overlapping areas.

The TFA says Defra should have instead looked at “real-life damage” on the ground, and that its methodology  meant many farms were left under compensated, while others received funds despite not experiencing any flood damage at all.

TFA farm policy adviser, Lynette Steel, said: “The TFA argued for an appeals mechanism to address cases, where the methodology did not correctly compensate for the damage caused, but our request fell on deaf ears.

“Despite further efforts to appeal the scheme outcome, there is no structure within the policy to allow us to do so and is a major shortfall in the scheme design.”

Out of pocket

Cambridgeshire farmer, John Pike was one farmer left out of pocket, despite having land flooded.

Mr Pike said: “It is a disgrace that, given the current financial pressures on Defra, they approved a scheme that has wasted thousands of pounds of taxpayers’ money by paying farm businesses that had little or no flooding damage, whilst leaving others, like mine, with a pittance in comparison to the level of damage experienced.

“Surely, the National Audit Office and the Public Accounts Committee of the House of Commons should be holding Defra ministers and officials to account for these failings.”

A Defra spokesperson said: “This Government inherited flood defences in their worst condition on record and more needs to be done to protect communities, including in rural areas, as we know that food security is national security.

“We are taking action now to protect farmers’ businesses – including a record two-year investment of £2.65bn to maintain, repair and build flood defences across the country and have paid out £60m to support flood-impacted farmers through the Farming Recovery Fund.

“The methodology of allocating funds in the Farming Recovery Fund ensures the funding is available for those who are most impacted as soon as possible.”