Written by: Evie Price, Head of Stewardship & Grants at CXCS
Following the prolonged hot and dry weather across England and Wales this summer, measures have been announced to help farmers manage the immediate impacts of drought and improve resilience for the future.
In England, support includes temporary adjustments to Environmental Land Management (ELM) agreements, an additional £50 million for Sustainable Farming Incentive 2026 (SFI26) Window 2 and up to £15 million for on-farm water storage through the Water Management Grant.
In Wales, farmers affected by the dry conditions may be able to access temporary derogations from scheme requirements, alongside grant funding towards investments that could help farm businesses manage and prepare for dry weather. Support includes flexibility for those struggling to meet certain scheme requirements, as well as funding towards measures such as water harvesting equipment, boreholes and ventilation equipment.
Evie Price, Head of Stewardship & Grants at CXCS, looks at the support available across England and Wales and what farmers and land managers need to know.
England
Temporary adjustments to ELM agreements
Temporary adjustments have been introduced for a range of ELM actions and options where the dry conditions are affecting farmers’ ability to meet their usual agreement requirements.
The adjustments are designed to:
- help ease shortages of grazing, fodder, forage crops and bedding
- reduce the risk of wildfires by allowing the creation of firebreaks
- provide greater flexibility for the planting and establishment of some seed mixes
The temporary arrangements apply to eligible actions and options within:
- Sustainable Farming Incentive (SFI) agreements
- current Countryside Stewardship Higher Tier (CSHT)
- legacy Countryside Stewardship, including Mid Tier and Higher Tier
- Higher Level Stewardship (HLS) under Environmental Stewardship
The exact adjustment available will depend on the action or option within your agreement, so it is important to check the requirements before making any changes.
You can view the full list of temporary adjustments and requirements on GOV.UK.
Who can use the temporary adjustments?
Temporary adjustments can be used where land is located in a county with an Environment Agency drought status of ‘drought’ or ‘prolonged dry weather’.
As of 15th August 2026, all counties in England fall within one of these categories, meaning qualifying agreement holders across England can make use of the relevant temporary adjustments.
The arrangements came into effect on 15th August and will generally remain available until the Environment Agency returns the county in which the land is located to ‘normal’ status. Some individual adjustments have different end dates, which are set out in the Government guidance.
You can check the latest drought status for England on GOV.UK.
Will using a temporary adjustment affect your payment?
No. Where the relevant requirements are followed, using one of the temporary adjustments will not affect the payment received under your ELM agreement.
However, all other obligations under the agreement continue to apply, along with relevant regulatory and legal requirements.
This includes any requirements relating to protected sites and species. For example, prior consent from Natural England may still be required before carrying out activities on a Site of Special Scientific Interest (SSSI).
What records do you need to keep?
If you use one of the temporary adjustments, you must complete a Temporary Adjustments form and retain it for your records.
A separate form should be completed for each ELM agreement.
Depending on the adjustment being used, you may also need to retain:
- evidence of field operations at individual land parcel level, including associated invoices
- stocking records showing grazing activity on relevant parcels
Keeping clear records is important to demonstrate that the temporary adjustment has been used correctly.
If an action or option has failed to establish because of the prolonged hot and dry weather, there are also separate requirements for notifying the Rural Payments Agency (RPA).
For SFI agreements, the RPA should be notified as soon as possible, preferably within eight weeks of being able to do so. Countryside Stewardship and Environmental Stewardship agreement holders should follow the relevant minor and temporary adjustment process.
Additional £50 million for SFI26 Window 2
The Government has also announced an additional £50 million for SFI26 Window 2, taking the total budget for new SFI26 agreements to £290 million.
Window 2 is due to open in September and will be available to all farmers and land managers who meet the scheme eligibility requirements.
The additional funding is intended to allow more farmers to access SFI and support practices that can help improve resilience to future periods of drought, including measures to improve soil health, organic matter and water retention.
Further details about SFI26 Window 2 are expected ahead of its opening. In the meantime, farmers and land managers considering applying can review the current SFI26 scheme rules, actions and eligibility requirements on GOV.UK to start preparing for the application window.
Water Management Grant to reopen
Up to £15 million is also being made available through a new round of the Water Management Grant, which is expected to open in autumn 2026.
The funding will help farmers invest in on-farm water storage, including reservoirs, allowing water to be stored when it is available and used during periods of greater demand.
The scheme will focus on water storage for crop irrigation, particularly supporting the horticulture and arable sectors to improve their resilience to drought and climate change.
Further information, including eligibility and application details, is expected when the scheme opens.
Changes to reservoir planning and water abstraction
Alongside the funding announcements, the Government has confirmed plans to make it easier for farmers to invest in water infrastructure.
Updated planning guidance for on-farm reservoirs is expected in September, while the Government is also considering whether further changes to permitted development rights could help support agricultural water infrastructure.
Farmers who hold abstraction licences and are concerned about water supplies can also approach the Environment Agency about temporary flexibilities during periods of exceptional dry weather.
These can include changes to abstraction seasons, reservoir refilling arrangements, abstraction points and licensed quantities, although requests will be considered individually and will need to take account of environmental conditions and other water users.
Wales
Temporary derogations from scheme requirements
Farmers who have entered the Sustainable Farming Scheme (SFS), or who are delivering preparatory scheme contracts, and are struggling to meet requirements because of the dry weather are being encouraged to apply for a temporary derogation.
Requests should be made through RPW Online and should include photographic evidence showing the condition of the crop.
Given the exceptional conditions this year, the Welsh Government has said requests will be looked at favourably and responded to promptly.
More generally, if extreme weather is affecting your ability to meet the requirements of a rural scheme agreement, it is important to contact Rural Payments Wales as soon as possible.
Funding to improve resilience
The Capital: Production and Efficiency grant includes funding towards investments that could help farm businesses manage and prepare for dry weather.
This funding is available under the SFS Optional Layer to eligible farmers who claimed SFS on their 2026 Single Application Form (SAF).
Eligible items include measures such as:
- boreholes
- above and below-ground water harvesting equipment
- ventilation equipment.
The grant provides 40% funding towards eligible costs, with grant awards ranging from £500 to £15,000.
Looking after livestock during hot weather
Farmers are also being reminded to consider the impact of prolonged hot and dry conditions on livestock.
Where there are concerns about animal health or welfare during extreme weather, farmers should seek advice from their vet. Guidance is also available from the Welsh Government covering the care of farm animals and horses during periods of extreme weather.
You can find further information about the support available for farmers affected by dry weather on GOV.WALES.
Mental health and wellbeing support
Prolonged dry weather can bring additional pressures for farming businesses and families, from concerns about crops, grazing and water supplies to the financial impact of drought.
If you or someone you know is finding things difficult, support and advice is available from a range of organisations working with the farming community.
England: Find wellbeing support for farmers
Wales: Find mental health and wellbeing support for farming families
How CXCS can help
If dry weather is affecting your ability to meet the requirements of an existing agreement, or you would like to discuss SFI26, SFS or available grant funding, please get in touch on 01981 590514 or email info@cxcs.co.uk to speak to our Stewardship & Grants team.
You can also find out more about our Stewardship & Grants service on our website.