DEFRA Farming Annual Report 2025 to 2026

This report provides an overview of what Defra delivered through the Farming and Countryside Programme during 2025 to 2026 and how funding was allocated across its schemes and grants. It highlights support for sustainable farming, environmental land management, animal health and welfare, productivity and innovation, and flood resilience, including key achievements and participation levels. The report also sets out total programme expenditure of £2.322 billion in 2025 to 2026 and provides a breakdown of spending by scheme and legislative power, alongside comparisons with previous years.

Key outcomes in 2025-26

1. £265 million of Delinked Payments were made to approximately 82,000 recipients, covering 99.1% of eligible businesses.

2. £1.819 billion was invested in Environmental Land Management schemes, including £738 million through the Sustainable Farming Incentive (SFI) and £887 million through agri-environment schemes.

3. SFI participation grew to 44,500 live agreements, with 36% of England's farmed land (3.2 million hectares) actively managed under the scheme.

4. Environmental outcomes delivered through SFI included:

   • 977,000 hectares of arable land farmed without insecticides.
   • 371,400 hectares of low-input grassland managed sustainably.
   • 168,600 kilometres of hedgerows protected and restored.

5. Farming in Protected Landscapes supported more than 1,600 projects involving over 4,500 farmers and land managers, delivering habitat, woodland, flood resilience and access improvements.

6. 277 water management projects improved flood resilience, benefiting more than 450,000 hectares of agricultural land and over 307,000 homes and businesses.

1. £22 million was invested in Animal Health and Welfare grants, including animal health reviews, endemic disease support and equipment grants.

2. The Livestock Information Transformation Programme launched LUIS 2.0 and corrected records affecting nearly one million animals. | PDF]

3. £73 million was invested in productivity and innovation programmes, including the Farming Innovation Programme and Farming Investment Fund, supporting automation, water management, precision breeding and low-emission farming research.

4. Total farming budget expenditure reached £2.322 billion in 2025-26, contributing to delivery of 99% of the government's £5 billion farming commitment across 2024-25 and 2025-26.