British farming is set for a major technology and productivity boost, with £345 million of new government funding aimed at strengthening farm profitability, accelerating innovation and helping
deliver more affordable food in the years ahead.
The investment will be unveiled today by Environment Secretary Emma Reynolds, as she addresses farmers and industry leaders at the National Farmers’ Union Conference.
The package builds on commitments first outlined at the Oxford Farming Conference in January and follows months of engagement with farmers, who have called for greater clarity, stability and a stronger partnership with government.
“A foundation for growth”
Reynolds is expected to tell delegates that the government is determined to give British farming “the foundation it needs to grow”, with a clear focus on productivity, resilience and long-term profitability.
Her message is expected to centre on three ambitions: more productive and profitable farm businesses, more British food on UK and global tables, and a countryside that thrives for wildlife, rural communities and future generations.
Simpler Sustainable Farming Incentive
A key element of the announcement is a revamped Sustainable Farming Incentive (SFI), designed to be simpler and fairer. The number of funded actions will be reduced from 102 to 71, while annual agreement payments will be capped at £100,000.
With around 97% of farms already below that level, the cap is intended to spread funding more evenly and ensure small and medium-sized farms benefit. Applications will open in June for smaller farms and those without a live Environmental Land Management agreement. Small farms are defined as holdings of three to 50 hectares registered with the Rural Payments Agency by 1 January 2026. A second application window will open to all farmers in September.
Investment in innovation and equipment
The wider funding package includes £70 million for the Farming Innovation Programme, aimed at turning cutting-edge research into practical tools on farms. This follows a previous £21.5 million investment in projects ranging from methane-reducing cattle feed to greenhouses designed to withstand extreme heat.
Another £50 million will be made available through the Farming Equipment and Technology Fund, helping farmers invest in machinery that improves productivity, animal welfare and slurry management. Grants will support technologies such as seed-planting robots and precision pesticide spreaders, cutting costs while reducing environmental impact.
Together, the measures deliver on the government’s commitment to invest at least £200 million in agricultural innovation by 2030.
Infrastructure and environmental resilience
Looking ahead, Reynolds will also confirm a new round of Environmental Land Management Capital Grants opening in July 2026, with up to £225 million available. The funding will support infrastructure that boosts productivity while meeting environmental goals, including hedgerow planting, slurry storage, natural flood management and upgraded livestock equipment to protect water quality.
Animal health and future planning
Further measures will focus on animal health and long-term planning for the sector. The government will consult on making Animal Health and Welfare Reviews — routine vet visits — mandatory for cattle, sheep and pig farmers, using what it describes as a practical and proportionate approach.
A new grant scheme will also launch this summer to strengthen poultry biosecurity through on-farm vet visits, aimed at reducing the risk of avian influenza.
Finally, ministers will commit to continued collaboration with farmers and industry as work progresses on a long-term Farming Roadmap, shaped by real-world experience on the ground.
For the government, the message is clear: technology, innovation and partnership are central to securing a productive, profitable and resilient future for British farming. Photo by Pam Brophy, Wikimedia commons.