An NFU-led farming roundtable has called on the government to back an interest-free loan, linked to the financial cost caused by the drought.
It warns that without it, farm businesses could lack the working capital to produce next year’s food.
NFU president Tom Bradshaw said: “Defra’s strategic commitments last week were a welcome and important step towards building greater water and long-term resilience on farms. But farmers face an immediate crisis in cash flow and confidence.
“Rain has come too late for lost harvests and slashed yields, while livestock farmers are dealing with the worst bluetongue outbreak to reach our shores. Many are worried they will not have money in the bank to plant next year’s crops or replace livestock lost to bluetongue.”
“When we met the Prime Minister on farm in Cornwall last week, he acknowledged the scale of the challenge and said the commitments were a ‘first start’, but there was ‘more to come’. This was a welcome shift from government. A Keep Britain Growing Loan would give farm businesses the working capital to produce next year’s food.”
Alex Godfrey, GB Potatoes chair, attended the NFU roundtable, added: “GB Potatoes supports the principle of interest-free farm crisis loans to help otherwise viable businesses withstand exceptional cash-flow pressures.
“Potato production requires substantial upfront investment, and the 2026 drought has left growers in affected areas facing lower yields, smaller tubers, quality pressures and significantly higher irrigation costs. Any scheme must be accessible without excessive bureaucracy and offer repayment terms aligned with agricultural production cycles.
“Crisis loans could help prevent a short-term shock from causing a permanent reduction in British farming’s capacity to produce domestic food, but they are not a substitute for the long-term investment in water storage that the potato industry needs. We need a clear and consistent planning and abstraction framework that enables growers to build on-farm reservoirs, capture water when it is plentiful and store it for what is becoming increasingly frequent drought periods.”
