Ahead of NFU Conference, cherished toys were delivered to the Treasury as a symbol of futures lost to the family farm tax, meanwhile a display of thousands of donated toys greeted attendees outside the QEII.
We’ve outlined what was announced by Defra Secretary Steve Reed, how this affects your farming business and how the NFU is responding.
You can read Mr Reed’s speech in full at: GOV.UK | Environment Secretary Steve Reed - NFU Conference speech.
Seasonal Workers
A 5-year extension to the Seasonal Worker visa route has been announced.
A Defra statement added: “Annual quota reviews will ensure we strike the right balance – supporting farms while gradually reducing visa numbers as we develop alternative solutions.”
In response, NFU President Tom Bradshaw said the announcement provided “much-needed certainty”.
“This has been a key ask of ours for many years, and its introduction will help safeguard the future of UK food production.
“It is encouraging that government recognises the importance of seasonal labour, and we welcome the commitment to explore options to support the sector, including innovation, agri-technology and local workforce opportunities.
“It will be crucial to ensure the scheme remains accessible and effective for growers who rely on it.
“However, we need certainty on the visa numbers for the full five years and a commitment that any decision on the numbers will be evidence-based and done with sufficient notice.
“A stable and secure workforce is vital to maintaining the success of the UK’s horticulture sector and ensuring continued food production. A well-structured scheme will give farmers and growers the confidence to invest and expand, ensuring British horticulture will thrive.”
Farming Equipment and Technology Fund
The government has said it will be investing in these farming grants with another window of the FETF (Farming Equipment and Technology Fund) opening in Spring 2025.
This will provide grants between £1,000 and £25,000. We await further details and timelines.
Defra will look to bring innovative technology and equipment that has reached the commercial market into the grant.
Around £46 million will be made available under the grant.
NFU Deputy President David Exwood said: “With ever-increasing financial pressures on farm, today’s announcement by Defra to open up the Farming Equipment and Technology Fund is welcome. It will play an important role in helping our members invest in their businesses to increase productivity and improve animal health and welfare as well as deliver for the environment.
“It’s vital that farmers review the information carefully to understand the focus and requirements of the scheme and that it’s ultimately right for them and the farm.”
Farming Innovation Programme
New FIP (Farming Innovation Programme) grants worth more than £42.5 million, including competitions focussed on unlocking the benefits of precision breeding and supporting the net zero transition will launch in 2025.
The new ADOPT fund first announced at the Oxford Farming Conference will be farmer-led and "bridge the gap between new technologies and their use in the real word", Mr Reed said.
The separate ADOPT funding announced is worth £20 million.
More details will follow in due course.
Tenant Farming Commissioner
Recruitment campaign for the Commissioner for Tenant Farming Sector is now live.
The Commissioner will encourage behaviour in the sector to meet standards set out in the Agricultural Landlord and Tenant Code of Practice for England.
NFU Deputy President David Exwood welcomed the news: “This is a vital role that will promote best practice, improve collaboration between tenants, landowners and their agents and help ensure there is fairness in the tenanted sector.
"The role must be completely independent and without bias to landlords or tenants, and it will be important that clear guidelines are in place to define exactly what the TFC can or cannot do and at what we stage they should become involved in disputes.
"The NFU looks forward to collaborating closely with the government to ensure the TFC has the tools needed to make a positive impact.”
Capital Grants
Mr Reed said he recognised the frustration from the industry when capital grants were unexpectedly paused last year.
At the NFU's Conference he has confirmed every application submitted for capital grants before the pause in November would be taken forward. Following this, the government will reopen the ELM capital grants offer this summer.
NFU Deputy President David Exwood said: “The sudden closure of the standalone capital grant applications at the end of last year was very frustrating and came as a real blow to our members, many of whom were relying on these grants to achieve their environmental ambitions.
“We are pleased that Defra is to process more than 4,000 completed applications that were put on hold and take new applications later this year.
“The NFU lobbied hard on behalf of its members, and this is a positive outcome that wasn’t expected. To help manage budgets, Defra will be reintroducing financial limits in the different categories.
"Going forward, Defra must learn from last years’ experience. A stop-go approach will not achieve the outcomes farmers’ or the environment requires. These are vital grants which enable farmers and growers to invest in sustainable production with great outcomes for food, air and water quality, and flood management.”
Higher Level Stewardship
Defra is investing £30 million towards increasing HLS (Higher Level Stewardship) payment rates with immediate effect – a key ask from the NFU
The payment increases apply to a range of HLS options from 2025. Defra has undertaken to publish the payment rates as soon as possible.
When these are published agreement holders will be able to assess the real impact of the payment changes.
Defra will be writing to agreement holders in April.
Responding to the news, NFU Deputy President David Exwood said: “After several years campaigning by the NFU, it will be a relief to agreement holders to finally see an increase to Higher Level Stewardship payments. This long-overdue, significant uplift acknowledges the vital role – as pioneers of nature-friendly farming, often based in upland areas – they have been playing in delivering high quality environment for decades.
“We look forward to reviewing the detail of the announcement.
"While the agricultural transition still leaves a number of farmers with a large gap in incomes, it is important that Defra now delivers a pathway for HLS agreement holders to convert to ELMs if they want to.”
Farming in Protected Landscapes
FiPL is being extended to 2026, continuing to support farmers and landowners in England's Protected Landscapes. The NFU awaits further details and will updated members accordingly.
Public procurement
New requirements announced today will mean government catering contracts favour "high-quality, high-welfare" local produce.
This builds on the government's commitment for at least 50% of food supplied into public sector catering contracts to be from British producers or those certified to higher environmental standards.
Responding to the news, NFU President Tom Bradshaw said: “Labour’s manifesto commitment to sourcing 50% of food in the public sector from UK farmers was welcome and at our conference NFU members will be pleased to hear how ministers intend to make this a viable, attractive market.
“Given the numerous pressures being loaded onto UK farming, this will be a welcome positive.”
Biosecurity
The government has reaffirmed it will set up a new National Biosecurity Centre to transform the Animal and Plant Health Agency animal health facility at Weybridge, investing £208 million to improve resilience against animal disease to protect farmers and food producers.
NFU President Tom Bradshaw said this was “welcome news as we contend with growing disease threats at our borders and nationwide, including the recent foot-and-mouth case in Germany and ongoing avian influenza and bluetongue risks in the UK”.
He added: “Establishing a new biosecurity centre will be crucial in safeguarding our farmers’ and growers’ businesses from animal and plant diseases."
"We look forward to learning more about the facility and will collaborate with Defra to ensure it meets the needs of our farmers and growers.”
