Government backs farmers with £345 million productivity and innovation funding

The UK Government has announced a £345 million investment to accelerate farm productivity, innovation and resilience, with Environment Secretary Emma Reynolds unveiling the funding at the National Farmers’ Union (NFU) Conference yesterday.

The package aims to strengthen farm profitability, expand the use of new technology and support the long-term conditions for more affordable food.

Speaking to delegates, Reynolds said the government is “taking action to back farmers”, outlining measures shaped by engagement with the sector and building on commitments made at the Oxford Farming Conference in January. The package focuses on improving productivity today while investing in technologies and infrastructure to drive future growth.

Environment Secretary Emma Reynolds said:

I am determined to give British farming the foundation it needs to grow.

We want farm businesses that are productive, profitable, and resilient.

We want to see more British food on more tables – here at home and around the world.

And we want a countryside that is thriving – for wildlife, for communities, and for the families who have worked this land for generations.”

A central element of the announcement is a revised Sustainable Farming Incentive (SFI), designed to be simpler, fairer and more stable. The updated offer reduces the number of actions from 102 to 71 and introduces a £100,000 annual cap on agreements to distribute funding more evenly. With around 97 percent of farms already below this level, smaller and medium-sized farms are expected to benefit most.

Applications will open in June for small farms – defined as holdings of three to 50 hectares registered with the Rural Payments Agency – and for those without a live Environmental Land Management (ELM) revenue agreement. A second application window will open to all farmers in September.

Innovation and technology funding

The package includes £70 million for the Farming Innovation Programme to help translate research into practical on-farm tools, including technologies enabling new crop development. This builds on a previous £21.5 million awarded to 15 projects aimed at cutting emissions, boosting resilience and improving productivity, such as methane-reducing cattle feed and heat-resilient greenhouses.

A further £50 million will be allocated through the Farming Equipment and Technology Fund to support purchases that improve productivity, animal health and slurry management. Grants will help farmers adopt innovations ranging from seed-planting robots to precision pesticide applicators, improving efficiency while reducing environmental impact and supporting long-term food affordability.

The government said the investment contributes to its commitment to spend at least £200 million on agricultural innovation by 2030 and will support infrastructure improvements that strengthen resilience and animal health.

In addition, a new round of ELM Capital Grants will open in July 2026 with up to £225 million available. Funding will support projects including hedgerow planting, slurry storage, natural flood management and livestock equipment to improve water quality and environmental outcomes.

Further measures announced include consulting on mandatory Animal Health and Welfare Reviews – vet visits – for cattle, sheep and pig farmers in England, launching a new poultry biosecurity grant this summer to tackle avian influenza risks, and continuing development of the Farming Roadmap through ongoing engagement with farmers and industry.