Maximising your farm resources amid calls for increased funding

By Chris Wright, Partner and ARA specialist

As discussions intensify over the need to raise the UK agriculture budget, the Country Land and Business Association (CLA) is urging the Labour Government to boost financial support for farmers.

With the CLA advocating for an increase from £2.4 billion to £3.8 billion annually in England and a £1 billion budget for Wales, farmers are left wondering how best to utilise their budgets.

A static agricultural budget

The UK’s agriculture budget has not moved since 2014, despite rising inflation and increasing demands on the sector.

The transition from direct payments, such as the Basic Payment Scheme (BPS), to payments for public goods, has changed how farmers are financially supported.

With the BPS being phased out completely by 2028, the pressure is mounting on farmers to adapt to new funding structures while continuing to meet food production and environmental goals.

Strategic budgeting for farmers

While the CLA and other organisations push for an increased budget, farmers should be focusing on how to best manage their current resources.

Prioritise Environmental Land Management (ELM) participation

The Environmental Land Management (ELM) scheme is poised to be the foundation of sustainable farming incentives.

With an estimated cost of £1.5 billion by 2027-28, ELM will reward farmers for practices that enhance soil health, promote biodiversity, and contribute to environmental sustainability.

To maximise your budget, consider early participation in ELM schemes.

Participation can secure funding that supports both your environmental efforts and financial stability. Focus on initiatives like improving soil health and creating habitats for wildlife to increase your chances of funding from the ELM scheme.

Invest in technology and innovation

The CLA’s proposal highlights the need for advancements in technology, skills, training, and research under the rural productivity, resilience, and food security programme.

Investing in modern agricultural technologies can improve efficiency, reduce waste, and boost productivity – key factors in maximising your budget.

Technologies used in precision farming, such as GPS-guided equipment and drones, are good investments as they can optimise input use and reduce costs.

Plan for the phasing out of BPS

With the Basic Payment Scheme being phased out, now is a good time to prepare for the financial gap that might arise.

Consider alternative income sources and efficiency improvements to offset the reduction in direct payments.

Engage in policy advocacy

While managing your current budget is a must, staying informed and involved in policy discussions is equally important.

The CLA and NFU are advocating for an increased agriculture budget, and your voice as a farmer can contribute to these efforts.

Engaging with local farming groups, attending consultations, and communicating with policymakers can help ensure that the needs of your farm and the broader agricultural community are heard.

Whether it’s understanding new funding opportunities or managing your budget effectively, our team of experts is here to provide the support you need to thrive for whatever comes next.

Contact us today for further assistance.