Robert Kirk
All eyes were on Environment Secretary Steve Reed during his address at this year's NFU Conference, with many hoping for reassurance on Inheritance Tax (IHT).
That reassurance did not come, and Mr Reed's reluctance to answer audience questions left many feeling increasingly frustrated.
READ NOW: Grants special: Welsh grants to look out for in 2025
Beyond IHT, however, there were some positive takeaways, including Defra's announcement of a new round of the Farming Equipment and Technology Fund (FETF) in spring 2025 – just three months after closing additional application windows in December 2024.
Productivity
Dairy farmers will have access to grants ranging from £1,000 to £25,000 to invest in equipment and technology that enhance productivity, sustainability and animal welfare.
These investments aim to support a more efficient and environmentally responsible agricultural sector.
Strengthening these areas is crucial for the future of UK agriculture, helping to improve efficiency, reduce environmental impact, and reinforce food security – key factors in maintaining competitiveness in both domestic and international markets.
As part of this drive for innovation, the FETF expanded its Animal Health and Welfare grant list in 2024, now covering more than 130 items.
Among the 29 new additions are automatic animal health and welfare remote monitoring systems – including smaXtec's comprehensive health management system – reflecting the increasing role of technology in proactive herd management.
LISTEN NOW:
Automated monitoring
While many dairy farms already use some form of automated monitoring to improve herd health and welfare, cost remains a barrier for some.
The new round of FETF funding in spring 2025 presents an opportunity for more farmers to invest in these technologies, making them more accessible across the sector.
However, when grant funding becomes available, there is a risk that farmers focus on what they can get rather than what they actually need.
READ NOW: Next steps in tackling antimicrobial resistance in Wales
This can lead to investment in systems that may not fully align with a farm's long-term requirements, reducing the overall value and effectiveness of the technology.
With a wide range of automatic health monitoring systems available – including tags, collars and boluses, many of which are eligible under the FETF grant – choosing the right solution can feel overwhelming.
Challenges
To make an informed decision, farmers should first identify the key challenges on their farm. Is fertility, lameness, or mastitis the main issue affecting performance?
Once the priority areas are clear, researching the different automatic health monitoring systems and their capabilities is crucial to finding the right fit.
Involving nutritionists and vets early in the process can provide valuable guidance, as can speaking to other farmers who have experience with different technologies.
READ NOW: Grants special: Farmers need clarity on the future of SFI
Their insights into what works in practice across various farming systems can help ensure the chosen solution delivers real value on-farm.
Another key consideration when investing in new technology is how well it integrates with existing farm systems; any new investment should complement these systems rather than add complexity.
Integration
If a system does not integrate with existing platforms, duplication of data entry can increase the workload rather than reduce it.
Farmers should prioritise technology that enables seamless data exchange, ensuring information is captured once and shared across all relevant systems.
Without this level of integration, even the most advanced technology can become more of a burden than a benefit.
READ NOW: Make use of TB Advisory Service before funding ends
Choosing solutions that align with existing infrastructure will help maximise efficiency and ensure long-term value.
While grant funding can ease the initial cost of adopting new technology, long-term value should always be a primary consideration.
Some farmers hesitate due to upfront expenses, but financial benefits often accumulate over time, making strategic investment worthwhile.
Fertility
For example, fertility management is one area where technology delivers strong returns.
Prolonged calving intervals impact profitability, yet many farmers underestimate the costs associated with extended days open. Heat detection and reproductive monitoring systems can optimise fertility, leading to improved milk yields and overall efficiency.
WATCH NOW:
Early calving detection, thanks to technology, also delivers benefits by giving the farmer time to prepare the calving pen and provide support if necessary.
This results in less stress, better cow and calf health, and a higher chance of a smooth, complication-free birth, which is key to ensuring long-term productivity.
Beyond fertility and early calving detection, reduced veterinary costs, lower replacement rates, and improved feed efficiency all contribute to long-term financial gains.
Investment
Although the initial investment in technology may seem high, efficiency improvements and cost savings often outweigh the upfront expense, reinforcing the value of a well-planned investment.
As dairy farming becomes increasingly data-driven, the role of technology will continue to grow.
Farms that fail to adopt innovative solutions may struggle to remain competitive, particularly as efficiency, sustainability, and herd welfare take on greater importance.
The latest round of FETF funding presents a valuable opportunity, but investment decisions should be guided by business needs rather than grant eligibility alone.
READ NOW: Bluetongue vaccination finance calculator launched
Selecting technology that integrates seamlessly with existing systems, supports long-term farm objectives, and delivers measurable returns will be key to making the most of this funding.
While grants can help offset costs, technology should never be adopted simply because funding is available.
The best investment decisions are those that enhance efficiency, improve herd health, and provide lasting value to the farm.
