AgriFacts
August 2026
Welcome to the August 2026 edition of AgriFacts Summer 2026 has certainly made its presence felt. The prolonged spell of hot, dry weather has brought harvest forward, and for many farmers it is already complete. Alongside the welcome progress, the conditions have created real challenges: long days in intense heat, grain coming off the combine unusually warm, and working into store. With grain so dry, there is also a
Harvest 2026 Overview
knock-on effect on grain weight, which in
Harvest 2026 has raced to an early
maize is increasingly concerning,
turn is influencing yields.
finish, with even wheat largely
with some reports suggesting
gathered in by early August across
harvest could be only weeks away.
patterns being adapted to get crops safely
Defra has also opened the first application windows for the 2026 SFI and 2026 Capital Grant schemes, both of which
many areas. But the speed of this year’s harvest has come against a backdrop of exceptional pressure.
have seen strong early interest. Budgets
After a promising start to the
have been allocated quickly, and although
spring, prolonged drought has taken
both schemes remain open at the time of
a heavy toll, leaving many crops 10%
writing, around 75% of each budget has
to 50% below long-term averages.
already been committed. In this issue, we
Farms that received timely rainfall,
take a closer look at what this means and
particularly on heavier land, have
share advice on how to be well prepared for
generally performed best. Spring
future applications.
crops have borne the brunt of the
We want Agrifacts to remain a useful,
again offered a welcome bright
relevant and enjoyable read. Your feedback
spot, exceeding budget where
makes a real difference, so if there are
crops were well established for
topics you would like us to cover, whether
the second consecutive year.
as a one-off article or a regular feature,
Quality is generally strong,
we would love to hear from you. Please
although very low moisture levels
conditions, while oilseed rape has
send your suggestions to agrifacts@ fishergerman.co.uk
will have implications. Overall, UK wheat production is once again expected to fall short of domestic
Political change has continued at a similar pace. Over the past decade, Defra has seen 10 Secretaries of State, with Dame Angela Eagle appointed by the new Prime Minister in July. She brings experience from a range of departments under previous Labour Prime Ministers, including a period as Farming and Food Security Minister in Defra, giving her a valuable working knowledge of the department and the issues facing the sector. It is still too early to know what changes she may look to make, or how much scope she will have to deliver them, but farm and rural businesses will be hoping her appointment marks a positive shift in direction.
Which of these following statements is true?
un r iF F
ac t
Ag
consumption, while the outlook for
a) Vanilla is harvested from the seed pods of a specific species of orchid, and each flower must be hand-pollinated within hours of opening. b) Carrots were originally strictly purple and yellow; orange carrots were genetically engineered in a lab in 1982 . c) Cows have four separate stomachs, each responsible for digesting a completely different type of crop.
Feed wheat
Feed barley
OSR
Milk
Finished steers
£184/t
£161/t
£439/t
34.38ppl
606 p/kg
August 2026
Prices taken from AHDB
Grain market prices
Fertiliser
(Midlands) ex farm Red diesel
Straw
Hay
Finished lambs
97.7ppl
£70/t - big bale wheat
£90/t big bale
723 p/kg
AN
Gran urea
TSP
MOP
Finished pigs
£461/t
£497/t
£623/t
£373/t
175 p/kg
Market briefing UK arable markets are balancing a tight domestic harvest against softer global supply pressure. Dry weather has hit cereal yields, particularly wheat, while oilseed rape has held up well. With prices still volatile, the focus should be on specification, storage and staged selling rather than waiting for a single market signal.
Wheat
Oats and pulses
UK wheat yields are disappointing and uneven, with many crops
Oat yields are running below longer-term averages, although
showing the impact of limited rainfall from spring onwards. That
crop quality varies considerably from farm to farm. Thin farmer
tightens the domestic picture, but strong international supply
selling and demand for competitively priced feed oats are lending
and subdued export demand are keeping a lid on sustained
support, while milling values will depend heavily on specific
price gains. In the near term, market direction will hinge on
weight, screenings and Scandinavian production. With a smaller
harvest quality, Black Sea logistics, sterling and any revisions to
UK crop, the domestic balance could tighten as the season
global crop estimates. Growers with acceptable quality may be
progresses, potentially reducing export competitiveness later.
best placed by keeping options open and selling in tranches as opportunities appear.
Pulses Bean and pea markets remain quiet while buyers work through
Barley
new-crop quality. Issues such as colour, admix, insect damage
The winter barley harvest is largely wrapped up, but averages
and splits could limit human-consumption eligibility, while
hide sharp regional differences. Attention now turns to spring
competitively priced Baltic supply is capping UK export
barley, where both yield and quality remain less certain. Lighter
opportunities. The key driver will be how much crop makes the
grain or weaker retentions could push more tonnage into feed
cut for premium markets versus feed. Testing and segregating
markets. Feed barley remains attractive in rations, although export
better-quality parcels should help preserve marketing options,
demand is being held back by cheaper competing origins. Malting
especially while domestic feed demand, freight costs and sterling
premiums will depend on pass rates, how flexible buyers are on
continue to influence values.
specification, and how quickly growers choose to sell.
Fertiliser
Rapeseed / oilseeds
Fertiliser markets remain firm, even though the rapid upward
Oilseed rape is the standout crop of the 2026 harvest, with
momentum seen in July has eased. Nitrogen replacement costs
reported UK yields running above recent averages. Prices remain
continue to be underpinned by gas, ammonia and international
closely tied to European rapeseed, soybeans, vegetable oils,
urea availability, while phosphates, potash and sulphur are also
crude oil and currency movements, so the market can shift
facing supply constraints. UK buying interest is cautious as
quickly. Harvest pressure is starting to ease, but uncertainty
growers weigh crop margins, but there is little sign of a broad
around energy values and global oilseed demand means volatility
near-term price collapse. The most balanced approach is to
is likely to stay in play. Setting sensible target prices may prove
review nutrient plans, storage and cash flow, then cover essential
more effective than chasing short-lived rallies.
autumn and early-season requirements in stages rather than leaving the whole position exposed.
RPA Schemes Update: key deadlines, funding pressures and opportunities to watch Capital Grants The 2026 Capital Grants offer opened on 30 July, with £225 million available for capital items that support environmental improvements across six funding groups. Demand has been exceptionally strong: applications appear to be handled on a first
A trial of CSHT agreements on Common Land is also planned for later this year. This is notable because such land has previously been unable to enter either CS or SFI. If the trial is successful, a wider rollout will follow. CSHT payment rates for moorland actions will also be increased to bring them into line with SFI rates.
come, first served basis, and 75% of the budget had already been
Innovation Grants
allocated by 1 August.
Under the Feasibility Studies scheme, £15 million is available to
SFI 2026
help businesses test whether a new product, service or approach
The Sustainable Farming Incentive (SFI) 2026 Window 1 is also
is the fifth round of the scheme, delivered in partnership with
moving quickly. Around 75% of the available budget had been
Innovate UK. It is open now and closes on 9 September. More
allocated by 13 July, and DEFRA has said it will issue a further
details can be found here.
update if the remaining funding is exhausted. In any event, Window 1 will close no later than 23.59 on 28 August. Any unallocated budget will be carried forward into Window 2, which is due to open in September. The Rural Payments Agency (RPA) has
could work in real farming, growing or forestry conditions. This
Defra has also announced a further £53 million for the Farming Innovation Programme in the 2026/27 financial year, in addition to the £70 million already announced. This signals continued support
now begun making SFI26 agreement offers to applicants.
for innovation-led improvements across the farming sector.
Window 2 is confirmed for September, with the exact opening
The Defra blog post accompanying the announcement provides
date expected once Window 1 has closed. A new feature will
a useful overview of the different innovation funding routes
also allow farmers with eligible Environmental Land Management
available, which is helpful given the range of schemes now in play:
(ELM) revenue agreements ending by the end of February 2027 to
•
apply in Window 2 and begin an application before their current
Farmer Welfare Grant A total of £1.5 million will be made available over three years
agreement expires.
to support farmer mental health and wellbeing. Applications
Given that several thousand Countryside Stewardship (CS)
open on 6 August, with further details awaited. A previous
Mid-Tier schemes are due to end this year, the SFI 2026 Window
round of the fund awarded £500,000 to seven farming
2 budget is likely to come under significant pressure. Anyone
welfare organisations and charities. More information can be
planning to apply should be ready well ahead of the opening date,
found here.
as there is no guarantee that funding will stretch to every eligible applicant. We also await confirmation on whether an SFI 2027 scheme will follow.
Countryside Stewardship Higher Tier (CSHT) Applications are now open for the new CSHT Expression of Interest (EOI) process. From 27 July, farmers and land managers can submit an EOI for agroforestry, woodland improvement, or new single-focus agreements covering species-rich grassland or scheduled monument management. This marks a shift away from the previous invitation-only approach. Submitting an EOI does not guarantee an agreement offer, but applicants should receive a decision within 10 weeks. To express an interest, applicants must complete the online form; further guidance is available here. For those with existing agri-environment agreements that are due to expire, the process will remain broadly unchanged. Land managers with CSHT agreements ending on 31 December 2026, or older Higher-Level Stewardship (HLS) agreements ending before 31 March 2027, will be contacted by Natural England and offered pre-application advice.
•
Collaboration Fund The Farmer Collaboration Fund is a £30 million initiative designed to improve farm performance by supporting practical, farmer-led collaboration. This includes peer learning, specialist advice, local facilitators and support for new farmer groups. Following a series of workshops, Defra has refined the scheme design. Guidance is expected in August, with applications opening on 1 September and closing on 30 September. Successful applicants are expected to be notified in early November and will be guaranteed funding for three years.
Drought is no longer an exception Why UK farming needs long-term resilience now
Drought is fast becoming one
insights from David Kinnersley,
of the defining challenges
Head of Agribusiness, it looks
for UK farming, bringing the
at the practical impact on
pressures of climate volatility,
farmers and what support
rising costs and food security
is needed to help them
into sharp focus. After months
adapt. From water storage
of saturated ground followed
and irrigation to cashflow
by prolonged dry weather,
planning and policy alignment,
many farm businesses are
the message is clear: if UK
facing difficult decisions
agriculture is to keep feeding
about crops, livestock, water
the country, farmers need
use and future investment.
the tools, confidence and
This article explores why
investment to build resilience
drought should no longer
for the years ahead.
be seen as a short-term disruption, but as a longterm business and national
Read the full article here
resilience issue. Drawing on
AgriFunFact answer! A) Vanilla comes from the Vanilla planifolia orchid. Outside its native Mexico, natural pollinators are rare, so most vanilla flowers are still carefully pollinated by hand using a tiny toothpick-like bamboo needle. Each flower opens for just one morning, giving growers only a few short hours to get it right!
Our key agribusiness specialists David Kinnersley Head of Agribusiness 01905 459427 david.kinnersley@fishergerman.co.uk
Bradley Humber Associate 01905 677356 bradley.humber@fishergerman.co.uk
Peter Roberts Associate Partner 01858 455306 peter.roberts@fishergerman.co.uk
Vicky Povey Agribusiness Consultant 07970 052224 vicky.povey@fishergerman.co.uk
Rachel Cornthwaite Agribusiness Consultant 01530 441671 rachel.cornthwaite@fishergerman.co.uk
fishergerman.co.uk