Banks in the UK are introducing emergency loan schemes to support farmers as a severe drought threatens to significantly reduce crop yields this year. The measures come as 2026 is on course to become the UK's hottest summer on record, with reservoirs drying up and water shortages affecting agricultural land across the country.

The drought conditions have raised concerns about the viability of this year's harvest, prompting lenders to step in with financial support aimed at helping farming businesses manage cash flow pressures during the crisis. The wider heatwave has also brought extreme heat warnings, with temperatures reaching as high as 38C, compounding the strain on the farming sector and water supplies nationally.