Agriculture: Finance

(asked on 23rd February 2026) - View Source

Question to the Department for Environment, Food and Rural Affairs:

To ask His Majesty's Government what is the annual farming budget for (1) 2025–26, and (2) 2026–27; and how the spending is broken down for each year.


Answered by
Baroness Hayman of Ullock Portrait
Baroness Hayman of Ullock
Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
This question was answered on 12th March 2026

The Government has allocated a record £11.8 billion to sustainable farming and food production over this parliament. On 12 March 2025 we set out how we planned to spend the budget [see attached] (£5 billion) across the 2024/25 and 2025/26 financial years.

Scheme

Budget for 2024/25 and 2025/26 (£m)

Delinked Payments

1,050

Live existing agreements (Higher Level Stewardship and Countryside Stewardship)

1,800

Sustainable Farming Incentive (SFI)

1,050

Other environmental land management (ELM) schemes

350

Farming grants (one-off payments to help improve the environment or increase productivity)

350

Animal Health, Welfare and Livestock Information Transformation

150

Mental health, Farming Resilience Fund, Prosperity Fund

100

Advice, pilots and technical support

150

Total

5,000

On 16 June 2026, following the 2025 Spending Review, we set out indicative funding figures [see attached] for the 2026-27 to 2028-29 financial years, including plans to increase the amount of money paid to farmers under Environmental Land Management schemes from £800m in 2023/24 towards £2bn by 2028/29.

Indicative funding (£ million)

2026–27

Delinked payments

20

Environmental land management schemes

1,950

Other (productivity, innovation, transition)

350

Farming and Countryside Programme

2,320

Nature schemes

450

Farming and Nature total

2,770

Please note final allocations will be agreed through business planning.

In line with its obligations under the Agriculture Act 2020, Defra regularly publishes an annual report, setting out commitments in the previous financial year, including Farming and Countryside Programme spend broken down by each scheme. The latest report covers the financial year 2024/25, and can be accessed here: Farming and Countryside Programme annual report [see attached].

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