Farming leaders have called on the Government to “truly value” food security by raising the UK’s agricultural budget to £5.6 billion a year, amid concerns over potential cuts.

The National Farmers’ Union (NFU), which is holding a reception in Parliament on Wednesday to mark Back British Farming Day, is urging ministers to deliver a “renewed and enhanced” multi-year agricultural funding pot in the Budget in October

The NFU says increased funding – of £4 billion for England, equating to £5.6 billion UK-wide – is essential to give farmers the confidence to invest in the future, produce sustainable and affordable food and deliver for nature, energy security and climate-friendly farming.

Under the previous government, there was a £2.4 billion annual agriculture budget for England, which was being shifted from EU-era subsidies mostly for land farmed, to environmental land management scheme (Elms) payments for public goods such as healthy soil and water and habitat creation.

The NFU’s call follows reports that a £100 million underspend in the budget could be handed back to the Treasury, as part of efforts to fill what the Government has labelled a £22 billion “black hole” in the country’s finances.

It comes as Labour criticised the former Tory government for failing to provide farmers promised funding after the Environment Department (Defra’s) farming and countryside programme’s annual report revealed a £130 million underspend in the budget in 2023/2024.

That comes after under-spending of more than £100 million in each of the previous two years.

Daniel Zeichner, minister for food security and rural affairs, said: “Time and time again the previous Conservative government broke their promises to farmers.

“They sold them out in dodgy trade deals and then failed to pay them the funds they were promised.”

“The Labour Government will restore confidence and stability to farmers to boost rural economic growth and strengthen our food security,” he pledged.

But ministers have also warned of the dire state of the UK’s finances, setting up a clash with countryside organisations over agricultural funding, as wildlife groups line up with farmers to call for an increase in the budget for nature-friendly farming and delivering goals to tackle the nature and climate crises.

Speaking ahead of the reception, NFU president Tom Bradshaw said British farmers and growers were “proud” to produce the raw ingredients for the UK’s £148 billion food and drink sector, but there were huge challenges for the industry.

“Over the past 18 months we have seen a collapse in farmer confidence, driven by record inflation, falls in farm income and a changing climate with unprecedented weather patterns delivering relentless rain which left thousands of acres of farmland under water,” he said.

“While in opposition we heard consistently from Labour that food security is national security.

“The Prime Minister, speaking at NFU conference last year, pledged that Labour ‘aspires to govern for every corner of our country, and will seek a new relationship with the countryside and farming communities on this basis, a relationship based on respect and on genuine partnership’.”

“We now need to see those ambitions realised,” he urged.

Aerial view of a field of wheat being harvested
Farmers say a boost to the budget is needed to deliver environmental and economic goals (Steve Parsons/PA)

“Today we’re calling on Government to truly value UK food security by delivering a renewed and enhanced multi-annual agriculture budget of £5.6 billion on October 30.

“This budget is essential in giving Britain’s farmers and growers the confidence they desperately need to invest for the future and deliver on our joint ambitions on producing more sustainable, affordable homegrown food while creating more jobs and delivering for nature, energy security and climate-friendly farming,” he said.

The NFU says independent work it has commissioned from the Andersons Centre suggests an annual budget of £4 billion is needed for England.

That includes £2.7 billion to meet the Government’s environmental goals, as well as £615 million for driving productivity and £720 million to support the economic stability of agricultural businesses.

The NFU estimates that would translate to a UK-wide budget of around £5.6 billion.

The union also wants to see the Defra be more transparent, publishing its impact assessment for the transition, including the uplands which could be particularly adversely affected, sharing annual budget plans and urgently reviewing Elms to make sure they can be accessed by all farmers.

Mr Bradshaw described the £130 million underspend as a “kick in the teeth”, and warned it had not been spent not because it was not needed, but because the new land management schemes were not completed in time.

He urged the Government to roll forward the unspent funding into the future budget to invest in sustainable food production and deliver legislated environmental targets.

Environment Secretary Steve Reed acknowledged confidence among farmers was at “record lows, with costs spiralling, flooding hitting their bottom line and red tape holding them back”.

He said: “The new Government will restore stability and confidence in the sector, introducing a new deal for farmers to boost rural economic growth and strengthen our food security.

“We will protect farmers from being undercut in trade deals, cut energy bills by switching on GB Energy, better protect them from flooding and use the Government’s own purchasing power to back British produce.”

The Government said there were “difficult decisions” ahead, and spending on Defra’s priorities would be confirmed as part of the forthcoming spending review.