Grants and subsidies: Adapting to the new support landscape

Navigating change

Jeremy describes the current situation as a period of transition marked by paused schemes, capped budgets and limited clarity. 

While government has indicated a revised SFI will reopen in stages, details remain sparse. Payment rates may be reviewed under the banner of ‘value for money’ and options could be simplified or capped. 

Importantly, Jeremy stresses these schemes should not be seen as replacements for the Basic Payment Scheme, but as business propositions. Farmers, he argues, must assess whether agreements genuinely align with their own objectives. Not taking part is as valid a decision as signing up.

“These are options, they aren't salvation,” says Jeremy. “And I think this is where we're looking at a very different relationship. And that's why this is a pivotal moment, a very different relationship between farmer and government.”

Encouragingly, FiPL funding has been extended for a further three years, offering continued support for farmers in protected landscapes.

“FIPL is a scheme that just seems to have worked really very well, been appreciated, locally determined and given people support for all sorts of business change and adaptation or environmental works,” Jeremy explains. “It's been very flexible.”

Farming without subsidies

Nick provides a practical perspective from the pig sector, which has long operated without direct subsidy. 

Reflecting on his own business, he describes moving away from a high-input, high-output model towards a lower-input system focused on soil health, home-grown feed and direct marketing. By prioritising margin over yield, smoothing cash flow and building a distinctive brand, his business has reduced exposure to volatility and regained a sense of control.

“We've kept the same acreage, but farming now without inputs,” explains Nick. “We've managed to establish a brand for our pork, which we think is fairly unique, where we're growing all the cereals and proteins for the pigs, and then just taking that direct to market ourselves, or selling direct to local butchers who see a value in what we're doing and pay us a premium for it.”

Farm business resilience mindset

Nick and Jeremy both acknowledge uncertainty weighs heavily on current farm business decisions. Volatile markets, inflation, changing tax policy and shifting support frameworks have prompted many businesses to delay investment.

They suggest focusing on what is within the farm gate, managing costs carefully and viewing support schemes as optional tools rather than essential lifelines is the mindset required to secure future security.

Looking ahead, Nick believes this period will be seen as a pivotal turning point. He hopes future support genuinely delivers ‘public money for public goods’ while encouraging farmers to strengthen the resilience of their businesses.

“Hopefully farmers will sort of get their heads around trying to make it work without impacting on the core business, but working with it, letting it enhance the business,” he concludes.

Whatever policy changes lie ahead, farmers are encouraged to plan with confidence, think strategically and build businesses capable of standing strong - with or without subsidy.

Episode showstoppers

1.      We are at a turning point where farms must think and act as resilient, forward-looking businesses, reimagining how they operate and moving beyond a sole focus on production.

2.      Mindset and legacy matter, with a shift in perspective to focus on long-term legacy, soil and environmental stewardship and overall business health rather than simply maximising output.

3.      There is opportunity in uncertainty. With few schemes currently open and less government direction, farmers face unfamiliar territory, but also greater freedom. It’s a chance to shape business direction proactively, ensuring the mindset and structure are fit for the future.

Listen to the full episode below - also available via Spotify and Apple podcasts.

About our guests

Jeremy Moody has been Secretary and Adviser to the CAAV for more than 30 years. His work has covered agricultural tenancy and land occupation, taxation, valuation, planning, climate change and environmental issues, writing widely on both policy and practice.

Nick Dymond is a fourth-generation farmer from Cornwall, moving from mixed farming to pigs and arable back in the 1980s. Ten years ago, they began downsizing to implement a low-input, regenerative system, launching St Piran’s Pork in 2022.