The NFU has repeated its call for tax incentives to encourage farmers to introduce reservoirs to their land.
The farming organisation was prompted to repeat its call for tax breaks because of a report by the Committee on Climate Change.
That report warned that, without action, there could be a significant shortfall of water for farming by the 2020s. The report said: “Having a price for water that better reflects scarcity will provide a stronger incentive for action.”
The report added that higher water prices would make reservoirs more economically viable. However, a NFU water resources specialist said he doubted higher water charges would encourage farmers to build more reservoirs. Some farmers might be prepared to pay more for a guaranteed supply of water, but he was unconvinced that high water prices would drive reservoir construction and that it would be better to incentivise farmers to invest through tax measures such as capital allowances.