England drought package adds £65m for farmers and reservoirs
England is putting £65 million into drought support for farmers after the driest July on record in England and Wales. Published on 14 August after a COBR meeting on heat, wildfires and drought, the plan is designed to keep water moving to crops, feed reaching livestock and scheme payments flowing when the weather blocks normal delivery. (gov.uk)
That matters because this is no isolated bad spell. The Environment Agency said on 29 July that half of England had already moved into drought, with rivers running low, early harvests under way and wildfire risk climbing; its wider 2026 drought guidance says hotter, drier summers are becoming more likely, which makes farm adaptation a standing task rather than an emergency extra. (gov.uk)
Defra is also trying to stop drought from knocking farmers out of environmental agreements. It will add £50 million to Sustainable Farming Incentive 2026, taking that budget to £290 million, and extend flexibility across SFI, Countryside Stewardship and legacy schemes so farmers can protect livestock, crops and soils without automatically losing payments. (gov.uk)
Storage is the other big test. Ministers have earmarked up to £15 million for on-farm reservoirs and say planning guidance will be updated on 17 August 2026 to cut delays. Existing government guidance already allows many smaller reservoirs without full planning permission, though prior approval is still required, so what farms need now is speed and clarity rather than another procedural loop. (gov.uk)
There is a wider water story behind this package. Government has already backed nine new reservoirs across England by 2050, noting that no new reservoir has been delivered since 1992. For farming, that long view matters: capturing winter water, adding local storage and making summer access fairer are less eye-catching than emergency aid, but they do more to steady yields through repeated dry years. (gov.uk)
Water access remains the immediate pressure point. Ministers say abstraction safeguards will stay in place, but licence changes and water sharing between holdings should move faster. That matters in a summer when the Environment Agency has recorded more than 1,500 licence restrictions and a rapid drawdown in farm storage, leaving little room for slow paperwork when crops are already under stress. (gov.uk)
The drought response is also being tied to wider rural protection. In June, government announced almost £100 million for specialist wildfire teams and upgraded national resilience assets, a reminder that parched land is not only a farm business issue but a public safety one too. When dry fields, low rivers and fire risk rise together, policy works better if water, farming and emergency planning are treated as one brief. (gov.uk)
For Eco Current readers, the value of this announcement is not the headline sum on its own but the change in emphasis. England’s drought guidance is clear that hotter, drier summers are more likely in future, so the useful test is whether this money turns emergency coping into planned resilience before the next dry summer arrives. (gov.uk)