Drought conditions across England have highlighted the vulnerability of agricultural production in the UK and the growing pressure on water resources.
Following last week’s emergency COBR meeting on extreme heat, wildfires and drought, the Government has announced a package of measures designed to support farmers and improve the resilience of agricultural businesses during periods of dry weather.
The measures include greater flexibility within Environmental Land Management agreements, additional funding for the second round of SFI 2026, changes to planning policy and the reopening of grants for water management and farm reservoirs.
Greater Flexibility for Environmental Land Management Agreements
The Government has announced temporary adjustments to Environmental Land Management (ELM) agreements.
These changes will provide greater flexibility where dry weather is affecting a farmer’s ability to meet agreement requirements. The flexibility will apply in areas that have been declared as being in drought status by the Environment Agency (EA).
This should help farmers manage the practical challenges caused by prolonged dry conditions while continuing to participate in environmental land management schemes.
£50 Million Added to SFI 2026 Funding
A further £50 million has been added to the budget for the second round of SFI 2026, which is due to open for applications in September.
This brings the total SFI 2026 budget to £290 million.
For farmers considering applying for funding, the additional budget could provide further opportunities to support sustainable farming practices while helping businesses respond to changing environmental and agricultural pressures.
National Planning Policy supports farm reservoirs and water infrastructure
An updated National Planning Policy Framework (NPPF), published on 17 August 2026, introduces policies relating to flood risk and water infrastructure.
Importantly for the agricultural sector, the updated NPPF sets out that the sustainable growth of businesses in rural areas should be supported, including proposals for farm and agricultural modernisation that benefit food production, animal welfare and the environment, which includes the provision of on-farm reservoirs. Proposals to provide water security and increased water capacity that is required to serve an agricultural development will be supported.
On farm reservoirs or irrigation ponds require planning permission prior to installation so it is important to seek professional advice.
Water Management Grant to Reopen
The Government has also confirmed that the Water Management Grant will reopen in autumn 2026, with £15 million available for arable and horticultural businesses.
Funding will be available for projects including:
- Reservoir construction
- Irrigation equipment
- Water management technology
- Other measures designed to improve drought resilience
The reopening of the grant could provide an important opportunity for agricultural businesses looking to invest in longer-term water security and improve the efficiency of their water use.
Flexibility for Water Abstraction
Further measures will provide flexibility around abstraction licence seasons and water rights.
The Government also intends to simplify the application process for long-duration abstraction licences.
These changes are intended to give farmers and other water users greater flexibility in managing water resources, particularly as periods of drought and water scarcity become an increasing concern.
How We Can Help
If you would like to explore available grants for farmers and agricultural businesses, contact our South Brent or Kingsbridge rural teams.
For advice on farm reservoirs, agricultural development and planning requirements, our Totnes planning team can help you explore your options.
South Brent Rural Team
01364 646170
southbrent@luscombemaye.com
Kingsbridge Rural Team
01548 800183
kingsbridge@luscombemaye.com
Totnes Planning Team
01803 869921
planning@luscombemaye.com
