Over the past year, Cumbria’s farming community has continued to navigate a complex and evolving landscape. Since I last wrote in August 2025, the sector has faced intensified financial pressures, regulatory shifts, and climate-related challenges — yet has also demonstrated remarkable resilience and innovation.
One of the most pressing issues remains the accelerated phase-out of delinked payments, which replaced the Basic Payment Scheme (BPS). In 2025, payments exceeding £30,000 were eliminated, and those below that threshold were slashed by 76%, capping support at just £7,200. This dramatic reduction has forced farmers to reassess their cash flow strategies and explore alternative income sources, such as the Sustainable Farming Incentive (SFI). However, delays and uncertainty around the rollout of environmental schemes have left many farmers in limbo.
Compounding these financial strains are impending changes to Inheritance Tax reliefs, set to take effect in April 2026. These reforms could significantly impact succession planning, with many family-run farms facing increased tax liabilities. A recent survey revealed that while 55% of Cumbrian farms intend to pass their business to the next generation, a concerning number have yet to formalize their plans.
Climate change has also made its mark. The unusually dry summer of 2025 led to poor harvests and reduced crop yields, particularly affecting arable farmers. With limited irrigation infrastructure, Cumbria’s farmers are increasingly vulnerable to weather extremes, underscoring the need for adaptive strategies and diversified income streams.
Yet amid these challenges, there are reasons for optimism. Cumbria has emerged as a national leader in rural digital transformation, with 99% of premises now enjoying superfast broadband and gigabit access thanks to strategic investment and public-private partnerships. This connectivity is enabling farmers to adopt precision agriculture technologies, streamline operations, and access new markets.
The region is also positioning itself as a hub for AgriTech innovation, with Cumbria’s Economic Strategy 2025–2045 highlighting opportunities in plant sciences, robotics, and clean energy. These developments promise to create new jobs, attract investment, and enhance the sustainability of the farming sector.
In this dynamic environment, Enterprise Answers continues to play a pivotal role in supporting Cumbria’s farmers. As a local, not-for-profit lender based in Penrith, Enterprise Answers offers flexible finance solutions tailored to the unique needs of rural businesses. Their face-to-face approach and understanding of the sector have made them a trusted partner, especially for tenant farmers who often struggle to access traditional funding due to limited security.
Recent case studies highlight their impact: one tenant farmer secured funding to relocate from South Yorkshire to Eden, while another used a loan to purchase in-going stock for a new tenancy in Northumberland. Enterprise Answers is also an accredited lender under the British Business Bank’s Growth Guarantee Scheme, allowing them to support marginal propositions and unlock opportunities for farmers lacking conventional collateral.
Their commitment to Cumbria’s agricultural community was further demonstrated through their sponsorship of the 2025 Cumbria Farmer Awards, where they joined other key stakeholders in celebrating farming excellence. The event showcased the sector’s resilience, innovation, and community spirit — from young farmers and trailblazing women in agriculture to sustainable enterprises and local food producers.
As Cumbria’s farmers look ahead to 2026, the road remains uncertain. But with strategic support, local investment, and a growing recognition of the sector’s importance to food security and environmental stewardship, there is hope. Enterprise Answers stands ready to help farmers not only weather the storm but build a future rooted in resilience, innovation, and pride.