Summary
In 2025, the subsidy landscape for UK farmers is continuing to undergo a major shift: away from general, flat-rate payments toward targeted funding that encourages sustainability, resilience, and environmental stewardship.
With historic budget commitments and newer, fairer funding models, there is continued support — albeit more competitive and outcome-focused.
For farmers, it’s essential to:
- Monitor scheme availability and criteria (e.g., SFI, capital grants)
- Work strategically to align farm operations with environmental priorities.
Do farmers still get subsidies in the UK?
Yes — while traditional flat-rate subsidies like the Basic Payment Scheme (BPS) continue to be phased out, financial support remains available. The focus has shifted toward environmental land management (ELMs), productivity, innovation, and capital grants, replacing direct per-acre payments with more outcome-focused schemes.
Have Basic Payments been stopped?
Almost. Traditional flat-rate BPS subsidies are being gradually phased out — projected to reach £0 by 2028 — but they haven’t disappeared yet. For example, a typical farm could expect around £37 per acre in BPS in 2025.
At the same time, new schemes (e.g., ELMs, Sustainable Farming Incentive, capital grants) are very much active and expanding.
Are farms profitable without subsidies?
Not generally. Rising input costs, price volatility, and extreme weather compound pressures on modern day farming, meaning most farms remain financially vulnerable without additional support.
"In 2023–24, cereal farms in England suffered an average loss of £26,400, despite receiving a Basic Payment of around £26,100 plus £13,200 from agri-environment schemes."
What is the Defra budget in 2025 for farm subsidies?
- FY 2024–25: Defra allocated approximately £1.74 billion under “Farm Support payments” within its broader £2.039 billion food and farming resource budget.
- Short-term: A government commitment of £5 billion over two years has been made to support sustainable farming and nature recovery.
- Long-term (2026–29): Following the 2025 Spending Review, Defra secured over £2.7 billion per year for sustainable farming, plus additional funding for environmental schemes.
- Recent developments: The government rolled out £150 million in Capital Grants in August 2025 to support farm upgrades for environmental improvements - this scheme closed in just 5 weeks after allocating its full budget.
Finding schemes available in 2025
Several active schemes and opportunities are available:
- Environmental Land Management (ELM) schemes
Pay farmers for sustainable farming that benefits food production and the environment. - The Sustainable Farming Incentive (SFI) has over 37,000 live agreements; applications have now closed, but existing agreements continue to be paid.
- Capital Grant - £150 million recently allocated to fund upgrades such as yard proofing or livestock fencing to protect water quality
How can I stay updated?
Take a look at our 'Subsidy Tracker' to see the latest funding status for DEFRA's core funding schemes.
Sign up to receive updates then things change to make sure you don't miss a funding opportunity.