Farmers and land managers who have been at the forefront of nature-friendly farming in England will see an uplift to Higher Level Stewardship (HLS) payment rates, the government has announced.
The increased payment rates, which will apply for agreement holders across a range of HLS options will, the government says, provide a boost for farmers – often living and working in upland areas – who have been the pioneers of nature-friendly farming.
It will bolster support for farmers delivering high-quality environmental outcomes to maintain species-rich grasslands, managing our most important habitats and delivering a range of high-quality environmental outcomes.
In a further boost for nature recovery and the environment, the popular standalone ELM Capital Grants scheme will re-open in the summer, worth around £45 million in 2025/26. The Rural Payments Agency is now processing the remaining 4,000 applications held when the scheme paused. These agreements will be worth £120 million over their lifetime.
The Farming in Protected Landscapes (FiPL) programme will continue – and the government will also support farmers to improve productivity and protect the environment with a £110 million investment in equipment and technology grants.
Long-term food security
Minister for Food Security and Rural Affairs Daniel Zeichner said, “This government’s focus is on ensuring farming becomes more profitable and businesses are viable for the future – delivering the long-term food security this country needs.
“Investing in innovation and technology will help farmers produce food more sustainably and profitably, and get the equipment they need to help their bottom line.
“And with nature being so crucial to long-term food security, we’re rewarding the pioneers of nature-friendly farming – including many upland farmers.”
A step in the right direction
James Robinson, NFFN England chair, welcomed the announcements. He said, “This is a step in the right direction for farmers. I particularly welcome increased payments and the reinstating of capital grants for environmental work on farms, especially with the sensible cap on individual grants to allow more farmers to access financial support for things like hedge planting. We have been pushing the Government on this for some time, so it is heartening to see that ministers are listening.
“However, there is still a lot of work to be done to deliver the climate-resilient, financially-viable, nature-friendly farming sector we need for the future. The Government needs to get the higher-level schemes such as Landscape Recovery and Countryside Stewardship Higher Tier rolled out at scale as soon as possible. Our most ambitious farmers who want to do the most for nature, the climate and our landscapes are still not being given enough support.”
A new farming profitability unit
Meanwhile, Defra Secretary, Steve Reed, spoke at NFU Conference. He announced that he would establish a new farming profitability unit within Defra, but said that there would be no change to the government’s position on inheritance tax.
He said, “I can’t give the answer I know many of you want on inheritance tax. But I want you to know that I understand the strength of feeling in the room and in the sector.
“I’ve heard many farmers describing that decision as ‘the final straw’ – and the truth is those straws have been piling up for many years. This sector is facing high input costs, tight margins and unfairness in the supply chain. You’ve struggled to get enough workers to pick your fruit and veg. Frankly, you’ve been sold out in past trade deals. Farmland is increasingly at risk from severe flooding and drought.
“And this all comes as we face the biggest transition for farming in generations, moving away from the Basic Payment Scheme to more sustainable methods of farming.
“The underlying problem in this sector is that farmers do not make enough money for the hard work and commitment that they put in.
“I will consider my time as Secretary of State a failure if I do not improve profitability for farmers up and down this country.”
To that end, Reed said that he was announcing a new farming profitability unit within the department “to drive that goal.”
Reed said, “British farming has some of the hardest working, most creative people anywhere in the British workforce. But a sector that isn’t profitable doesn’t have a future. I know that from my own long experience in business.
“My focus is on ensuring farming becomes more profitable – because that is the best way to make your businesses viable for the future.”
A Defra spokesperson said the government will work with farmers to boost profitability through fair competition across the supply chain, including using planning reforms to support food production and monitoring food currently bought in the public sector and where it is bought from.
They said Defra would, “help farmers diversify income streams and make additional money from selling surplus energy from solar panels and wind turbines by accelerating connections to the grid.”