Defra announces funding to help England’s dairy farmers overcome the impact of the coronavirus (COVID-19) pandemic

Although not yet open to applications, the Department for the Environment, Food and Rural Affairs (Defra) has announced that England’s dairy farmers will be able to access up to £10,000 each to help them overcome the impact of the coronavirus outbreak.

The new funding will help support dairy farmers – who together continue to produce over 40 million litres of milk every day – who have seen decreased demand for their products as bars, restaurants and cafes have had to close.

The dairy sector is the UK’s largest farming sector, with milk accounting for 16.85% of total agricultural output in the UK in 2018. Since the start of the coronavirus outbreak, the dairy industry has faced challenges of excess milk, falling prices, and reduced demand from the hospitality sector.

With some dairy farmers facing financial difficulties and excess milk, the new fund will provide support for those most in need. Eligible dairy farmers will be entitled to up to £10,000 each, to cover 70% of their lost income during April and May to ensure they can continue to operate and sustain production capacity without impacts on animal welfare.

Eligible dairy farmers who have lost more than 25% of their income over April and May due to coronavirus disruptions will be eligible to access this funding for those qualifying months, with no cap set on the number of farmers who can receive this support or on the total funding available.

The Department for Environment, Food and Rural Affairs has said that more detail on the fund will be issued in due course.

Limited further information is available in the press release published on the GOV.UK website.