The new Labour government's promise of a new deal for farmers sets out 'positive intentions', although 'there is a lot of work to be done', the NFU has said.
Defra's pledge came after it published new figures from its farmer opinion tracker for England which found that farmer confidence remained poor.
Half of farmers said they did not feel positive about their future in farming, according to the findings.
Of those making changes to their businesses, one quarter planned to cut the size of their businesses and 14% planned to leave farming in the next 3-5 years.
Extreme weather, rises in energy costs and 'damaging' trade deals were cited as factors contributing towards this negative trend.
Defra's results showed that trade agreements with other countries were a factor for 29% of farmers who made changes to their business.
It supports the NFU’s own survey work which found confidence levels are at their lowest across the majority of sectors since records began in 2010.
In response to the findings, Defra Secretary Steve Reed said action was needed by the new government to restore stability and confidence in the sector.
He added there would be 'a new deal' for farmers to boost rural economic growth and strengthen food security, alongside nature’s recovery.
Responding, NFU President Tom Bradshaw welcomed the “positive intentions to achieve our shared ambition of boosting UK food security”.
He added that it was "good to see a recognition that rebuilding confidence and stability is central to this”.
“Our own survey showed that farmer confidence has been battered by a myriad of issues, from farm profitability and the phasing out of BPS support to the devastating impact of extreme weather and flooding," he said.
"Investment is key to overcoming these issues, to build business confidence and achieve growth in the sector. This must start with an increased multi-annual agriculture budget.
“There is a lot of work to be done and hurdles to overcome to ensure farming can continue to play its part in the health and wealth of our nation.
"We really value the open dialogue we have with the government to find those solutions which will deliver a more stable business environment where British farming can thrive, and ultimately bolster our nation’s economic and food resilience.”
What is Labour's 'new deal' for farmers?
The new Labour government says it is introducing a new deal for farmers to boost Britain’s food security and drive rural economic growth.
This will include:
• Optimising Environmental Land Management schemes so they produce the right outcomes for all farmers
• Seeking a new veterinary agreement with the EU to cut red tape at borders and get British food exports moving
• Protecting farmers from being undercut by low welfare and low standards in trade deals
• Using the government’s purchasing power to back British produce
• Setting up a new British Infrastructure Council to steer private investment in rural areas including broadband rollout in rural communities
• Speeding up the building of flood defences and natural flood management schemes, including through a new flood resilience taskforce to protect rural homes and farms
• Introducing a land-use framework which balances long-term food security and nature recovery
