← All News

Drought help has landed: an extra £50m for SFI, a reservoir grant on the way — and rule changes you can use today

DEFRA announced a £65 million drought package on 15 August: £50 million more for SFI26 Window 2, up to £15 million for on-farm reservoirs in the autumn, and — the bit you can use right now — temporary freedom to cut and graze land in your ELM agreement for fodder, in every county in England. There is one form to fill in first. Here is the lot, in plain English.

Drought help has landed: an extra £50m for SFI, a reservoir grant on the way — and rule changes you can use today

After a summer of watching the grass disappear, some actual help. On 15 August the government announced a £65 million drought support package for farmers in England. Some of it is money arriving later this year; some of it is rule changes you can use today. Let's take it in that order — quickest wins first.

You can now cut and graze your ELM land — every county qualifies

This is the immediate one. If you have a revenue agreement under SFI, Countryside Stewardship Higher Tier, legacy CS Mid or Higher Tier, or HLS, DEFRA's temporary adjustments let you:

  • Cut land in your agreement for fodder or bedding from 15 August — for your own use or to share with neighbours, "it should not be for profit", and graze land that would normally be off-limits (buffer strips, field corners, pollen mixes, cereal headlands, grassland options and more)
  • Cut, clear or plough to create firebreaks on eligible land below the moorland line, to protect property and livestock
  • Sow certain seed mixes as late as 30 September 2026 where the dry ground has made establishment impossible

The trigger is your county being in drought or prolonged dry weather status — and as of 15 August, every county in England qualifies, so every ELM agreement holder can use these. DEFRA's own words on the money side: using the adjustments "will not affect the payments you receive under your ELM revenue agreement."

The one catch: do the paperwork first

You don't need to ask the RPA's permission — but you must complete the temporary adjustment request form and keep it for your records (it's a short Word document, published 15 August — one form per ELM agreement), and keep evidence of what you did: field operations at parcel level (invoices included) and stocking records showing the grazing. The flexibilities end when the Environment Agency puts your county back to "normal" status — and if that happens, or a late sowing fails, you're asked to tell the RPA as soon as possible, ideally within 8 weeks. Ten minutes with the form now saves an awkward inspection conversation later.

£50 million more for SFI — Window 2 opens in September

The package adds £50 million to SFI26, taking the total for new agreements to £290 million, with Window 2 opening in September. If you watched Window 1's £60 million disappear at speed and decided not to rush, this is your second run at it — with a bigger pot behind it. Worth having your land and actions worked out before the window opens rather than after.

Up to £15 million for on-farm reservoirs

A new Water Management Grant round, expected to open in the autumn, will put up to £15 million into building on-farm reservoirs — aimed at water storage for crop irrigation in the horticulture and arable sectors. After a summer like this one, DEFRA clearly expects a queue: they've said that if demand exceeds the funding, they'll "keep the budget under review and consider providing additional funding." Planning is being loosened to match — updated guidance on reservoirs (plus greenhouses, polytunnels and farm shops) is due in September.

More room on water abstraction

If you hold an abstraction licence, the Environment Agency is offering flexible options in exceptional dry weather: extended abstraction seasons, earlier reservoir refilling, trading water with other licence holders, moving or adding abstraction points. From September the EA is also simplifying its application process for long-duration reservoir abstraction licences. Their advice is simple: get in touch early, don't wait until the pump has to stop.

What we'd do this week

If your ELM land could feed stock or fill a barn with bedding, download the temporary adjustment form and start cutting — that's the part of this package that helps before the rain comes back. Pencil September for SFI Window 2, and if a reservoir has been on your someday-list for years, autumn is the moment to price it up. And since every drop you store will need to go exactly where the crop can use it, our plain-English guide to precision agriculture in the UK covers the soil-moisture monitoring and irrigation-targeting side of that story.

Sources

Details reflect the announcement of 15 August 2026. The Water Management Grant and SFI Window 2 dates are DEFRA's stated intentions, not open application windows yet — check GOV.UK before committing money to either.

How useful was this article? Be the first to rate this