Background to the report
The farming sector is a small but vital part of the UK economy.
Despite only accounting for 0.6% (£13.9 billion) of the economy
in 2022, the farming sector in the UK produced 62% of the food we
ate in 2023. This increases to 75% when only considering food
that it is possible to grow in the UK.
Following the UK's decision to leave the EU, the government has
been developing a new approach to farming and the countryside in
England, describing it as the “biggest change in
agricultural policy in half a century”. This transformation is
taking place at a time when extreme weather, market conditions
and world events are combining to put many farm businesses under
pressure.
Scope of the report
This is our third report on the Programme. It covers how Defra
is:
- managing the Programme and addressing key risks
- delivering environmental outcomes and food production
- seeking to improve farm productivity and maintain a viable
farming sector
Conclusions
The Farming and Countryside Programme aims to fundamentally
change England's farms. The stakes are high for the environment,
food production and the viability of the sector. To achieve the
Programme's objectives, many farmers need to transform the way
they farm, and Defra's modelling shows the extent of productivity
improvements that are needed for farm businesses to maintain
viability.
Take-up of schemes is rapidly increasing, but some of what Defra
is paying for now are actions that, for many farmers, do not
result in significant immediate change to farming practices.
Instead, they are expected to encourage farmers to do more for
the environment in the long-term.
Defra expects the removal of direct payments to stimulate most of
the required productivity improvements. It says it has seen some
improvements already as farmers adapt to life without direct
payments, but the evidence is inconclusive on whether the scale
of change needed will be achieved.
Farmers need quality advice and support to adapt, but Defra has
not yet ensured that they can access what they need. Around half
of England's farmers say they are not at all positive about
their future in farming.
The Programme will continue to change, but Defra has not yet
provided a long-term view of how it expects the Programme to
develop, for example, in terms of the balance of funding between
SFI and more ambitious schemes.
Defra's iterative approach to Programme design makes it difficult
for farmers to plan their businesses to remain viable, to
continue to produce the food we need and to achieve the
Programme's environmental objectives. Currently, gaps in the
Programme's data on environmental outcomes is limiting Defra's
ability to fully understand the impact on the environment, or
whether it is on track to achieve value for money.
