There's a number doing the rounds in farming circles that should stop anyone in their tracks. Oats are at a 46-year low. Not just a bad year. The worst year since records began.
By 15th August, every county in England met the criteria for drought or prolonged dry weather, and the government has responded with a £65 million package. But talk to farmers on the ground and the mood is more cautious relief than celebration. The money helps. But it doesn't fix the cashflow crisis already unfolding.
Why the government has stepped in
Heatwaves and sustained low rainfall have put real pressure on crops, livestock and water resources right across the country. The Prime Minister, Andy Burnham, and Farming Minister Stephen Morgan travelled to a farm in Cornwall to meet NFU President Tom Bradshaw and announce the support in person, following a COBR meeting on extreme heat, wildfires and drought.
The headline measures include temporary flexibilities on Environmental Land Management agreements, so farmers can graze or cut land in a scheme without losing payments. There's an extra £50 million for Sustainable Farming Incentive 2026's second application window, taking the total SFI26 budget to £290 million. Up to £15 million has been set aside for on farm reservoirs, alongside a promise to ease planning barriers and simplify long term abstraction licensing from September.
It builds on the government's Farming Roadmap 2050 vision for a more resilient sector, and NFU Deputy President Paul Tompkins welcomed the direction of travel, noting that 'it's clear that our weather patterns here in the UK are changing' and that the country needs to invest in capturing water at times of plenty for use in times of shortage.
But the crisis isn't waiting for autumn
The trouble is timing. According to AHDB figures cited in NFU's response, wheat yields are running 13% below the five year average, and oats have hit their lowest point in 46 years. Potatoes, sugar beet and other field crops are described as actively failing for lack of water.
Bradshaw was blunt about it. 'We are experiencing a huge crisis of cashflow and confidence across all sectors,' he said, warning that urgent support is needed now so farmers are still producing food next year. The Water Management Grant, one of the more practical long-term measures on offer, won't even open until autumn, and full details of what it will cover are still to come.
What happens next
Farmers in a drought or prolonged dry weather county can already apply for ELM adjustments and abstraction flexibilities. SFI26 Window 2 opens to all farmers in September, and updated reservoir planning guidance follows the same month from MHCLG.
For a sector already grappling with an ageing workforce and a well-documented skills gap, prolonged financial pressure doesn't just squeeze this year's harvest. It shapes hiring confidence, wage budgets and how secure a job in farming feels to the people considering joining it.
Frequently asked questions
What support is available to farmers affected by the 2026 drought?
Farmers in a county with drought or prolonged dry weather status can access temporary ELM flexibilities, apply for abstraction licence adjustments, and from September, apply for SFI26 Window 2 funding. The Water Management Grant for on farm reservoirs opens in autumn.
Why are farming groups still concerned despite the new package?
The NFU has welcomed the investment but says it doesn't address the immediate cashflow crisis many farms are facing this year, with crop yields at historic lows and some crops failing outright due to water shortages.
How does the drought affect farming jobs and recruitment?
Financial pressure on farm businesses tends to filter through to hiring. Tighter margins can mean fewer new roles, more caution around pay, and added strain on retaining staff, which is why sector resilience and workforce stability are so closely linked.
