The UK government has frozen grants promised to farmers in England for planting hedges, improving waterways, and other environmental measures, citing budget constraints.

The capital grants scheme, which provided funding for infrastructure like slurry storage to prevent river pollution, has been abruptly paused. Farmers have expressed concerns that this will hinder their ability to operate sustainably.

The grants supported various eco-friendly initiatives, including tree planting, maintenance, badger gates to prevent fence damage, and wildlife nesting boxes.

The freeze has left many questioning the government’s commitment to supporting environmentally responsible farming practices.

Lake district cattle farmer Andrea Meanwell said: “We have made changes to our grazing, management and breeds to plan for the agricultural transition but this is all very challenging.”

Joe Stanley, head of sustainable farming at the Game and Wildlife Conservation Trust’s Allerton Project, added: “What a situation; the government changes the entire social contract with farmers to make them deliver for the environment, then cuts the funding off when farmers rise to the challenge.”

Simultaneously, farmers are protesting proposed changes to inheritance tax. The new rules would impose a 20% levy on inherited farm businesses valued over £1 million. With falling farm incomes and high land values, many argue these repayments will be unsustainable.

A spokesperson for Defra confirmed the capital grants scheme review: “We will simplify and rationalise our grant funding, ensuring that grants are targeted towards those who need them most and where they can deliver the most benefit for food security and nature.”

The situation is further exacerbated by larger-than-expected cuts to farming subsidies under Rachel Reeves.

Data from the Agricultural Industries Confederation (AIC) reveals a sharper decline in government payments than anticipated. Post-Brexit, ministers promised to phase out EU-style land area payments gradually, replacing them with payments for nature-based actions like planting hedgerows and soil care. However, the chancellor’s 79% cut has created financial strain.

For example, a farmer who received £62,000 last year expected £38,000 this year but now faces just £7,200.

Such drastic reductions, according to the AIC, could erase profits for those operating on tight margins. Farmers, already struggling with low incomes, are left questioning how they will meet rising environmental expectations without adequate financial support.

 

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