Drought Support for Farmers: What's New?
August 2026
By Mollie Gillard, BSc (Hons), MRICS, FAAV, Rural Surveyor
Recent periods of extreme heat and below-average rainfall have placed significant pressure on water availability across the agricultural sector. These challenging conditions, coupled with elevated temperatures, have increased wildfire risks in many parts of the country, including the South West, while creating additional challenges for agricultural production and Environmental Land Management (ELM) scheme delivery.
In response, DEFRA has announced a range of measures designed to help farmers manage the impacts of drought, protect crops and livestock, and strengthen long-term resilience. Below we explain the support available and how these initiatives may benefit your business.
Environmental Land Management (ELM) Scheme Flexibilities
Temporary adjustments have been introduced to Environmental Land Management (ELM) agreements, allowing farmers affected by drought to continue receiving payments while taking practical steps to protect their land, crops and livestock.
The additional flexibility is intended to help agreement holders meet scheme requirements while managing the effects of prolonged dry weather.
Key measures include:
- Temporary removal of certain cutting and grazing restrictions.- Permission to create firebreaks to protect homes, livestock, crops and agricultural infrastructure from wildfire risk.
- Extended timeframes for establishing scheme options where planting has not been possible due to drought conditions.
Eligibility
These adjustments apply to land entered into the following schemes:
- Sustainable Farming Incentive (SFI)
- Countryside Stewardship Mid-Tier (CSMT)
- Countryside Stewardship Higher Tier (CSHT)
- Higher Level Stewardship (HLS) under Environmental Stewardship (ES)
As of 15 August 2026, all counties in England have been classified by the Environment Agency (EA) as either experiencing drought or prolonged dry weather. Consequently, all eligible land within the schemes listed above qualifies for these temporary flexibilities. The measures will remain in place until the EA returns affected counties to normal status.
Sustainable Farming Incentive (SFI) Window Two
The Government has announced an additional £50 million for the second round of the Sustainable Farming Incentive, bringing the total SFI budget for 2026 to £290 million. Opening in September, the scheme aims to support farmers in adopting sustainable approaches to managing soils, livestock, nutrients, fertiliser use and farm wildlife while maintaining productive food production systems. This round is available to all eligible farmers and land managers in England, including those with existing agreements.
Water Management Grant
The Water Management Grant is expected to reopen this autumn with a budget of £15 million available to support the construction of on-farm reservoirs.
The scheme is intended to help farmers improve water storage capacity, increasing resilience during prolonged dry periods. Funding will focus on water storage for crop irrigation, supporting both the horticultural and arable sectors as they adapt to climate change and increasing drought pressures.
Given the anticipated demand for the scheme, the Government has indicated that additional funding may be considered if applications exceed the available budget. Alongside this, proposals are being considered to reduce planning and regulatory barriers affecting the development of on-farm reservoirs and other agricultural infrastructure, including greenhouses, polytunnels and farm shops.
Environment Agency Support
Farmers concerned about their water supply and holding an abstraction licence are encouraged to contact the Environment Agency (EA) as early as possible. The EA currently offers a range of temporary drought-related flexibilities, including:
- Extending abstraction seasons.
- Allowing earlier reservoir refilling where conditions permit.
- Facilitating water rights trading between licence holders.
- Combining licences to increase flexibility regarding where water can be used.
- Adding or relocating abstraction points.
- Increasing licensed abstraction volumes where water resources and environmental conditions allow.
All requests are assessed on a case-by-case basis, taking into account the potential impact on the environment and other water users.
RABI Charity Grant Due To Open
RABI is providing £2 million in emergency financial support for farming households facing personal financial difficulties as a result of the drought.
From September 2026, eligible farm owners and tenant farmers will be able to apply for £2,000 Emergency Drought Grant. To qualify, applicants must have their principal farming business in an area officially designated as being in drought.
A total of £400,000 will be allocated across each of five regional application rounds, with applications opening at midday on:
- 7 September: South West
- 14 September: Wales
- 21 September: South East
- 28 September: East
- 5 October: Midlands
Prolonged dry weather and months of below-average rainfall are putting increasing pressure on farm households. Reduced grazing availability, higher feed and water costs, restrictions on irrigation and lower yields are among the challenges being faced by farmers.
The grants are designed to provide rapid financial support towards personal and household costs where drought-related pressures have contributed to financial hardship.
What Should You Do Next?
If your farming business has been affected by the current dry conditions, now is a good time to review your existing ELM agreements and consider how these temporary flexibilities could support your enterprise.
Our rural team can advise on the implications for your stewardship agreements, help identify available funding opportunities, and provide guidance on the feasibility and planning of on-farm water storage projects, including reservoirs.
For further advice on drought support measures and farm resilience planning, please contact your local GTH rural office, or email [email protected].