Drought & Farm Financial Health

21st August 2026

With much of England now experiencing drought conditions, many farmers are facing the reality of reduced grass growth, lower forage availability, pressure on water supplies and concerns around crop performance. DEFRA has recently published guidance and support available to help farmers manage the ongoing dry weather.

For many farming businesses, the priority right now is keeping livestock watered, protecting crops where possible and reducing the risk of fires. However, it’s also important to consider the knock-on effect these conditions may have on the financial health of the farm.

Higher feed costs, additional irrigation expenses and potentially lower yields can all impact cash flow over the coming months. Taking time to review budgets and expected income can help identify any areas of concern early and allow for better planning before pressures mount.

DEFRA’s guidance also highlights support available through the Environment Agency, including advice on water abstraction, irrigation and water-sharing opportunities. There are also grants and innovation schemes designed to help farms improve water efficiency and build long-term resilience.

If you’re involved in SFI, Countryside Stewardship or other environmental schemes, remember to notify the Rural Payments Agency if drought conditions prevent you from meeting agreement requirements.

While we can’t control the weather, we can prepare for its impact. A combination of practical farm management and regular financial reviews can help ensure your business remains resilient through the challenges ahead.

Read DEFRA’s full guidance here: https://defrafarming.blog.gov.uk/2026/08/12/managing-farms-and-land-during-prolonged-dry-weather-and-drought/