As of 26th February, DEFRA’s blog has published a number of updates on the funding available to farmers, growers, and land managers.
CAPITAL GRANTS
Capital grants offer funding for capital items such as fencing, concrete yard renewal, roofing, etc.
Following the unexpected closure of Capital grants on 27th November 2024 DEFRA have now confirmed sufficient funding for 2025/26.
They can now process the over 4,000 applications that have been on hold and confirm that the scheme will open to new applications later in the year, although a specific date was not given.
When applications for Capital grants do re-open it will be on a rolling application basis.
To prevent another unexpected closure, the following spending caps have been introduced and only one application can be submitted per category per year per SBI number:
- Water Quality – £25,000
- Air Quality – £25,000
- Natural Flood Management – £25,000
- Boundaries, trees and Orchards – £35,000
COUNTRYSIDE STEWARDSHIP HIGHER TIER
DEFRA have begun inviting farmers and land managers to apply to the 2025 scheme.
There will be opportunities for non-invited parties to apply in the future, an exact date is not given.
HIGHER LEVEL STEWARDSHIP
Payment rates for certain actions are being increased to reflect the important role they play in protecting habitats, restoring landscapes, and boosting biodiversity.
The actions with payment increases are to be announced as soon as possible.
For existing agreement holders this payment increase will come into effect from December 2025.
FARMING EQUIPMENT TECHNOLOGY FUND
Offers grants for equipment, technology and small infrastructure to boost productivity, improve slurry management and enhance animal health and welfare.
Applications will re-open in spring offering between £1,000 and £25,000. Further detail is promised at that point.
ANIMAL HEALTH AND WELFARE PATHWAY
If you keep cattle, sheep or pigs you can qualify for funding from £215 to £923 per review or follow-up depending on livestock type for a vet to visit your farm to carry out an annual health and welfare review, and an endemic disease follow-up.
The review has now been expanded to allow keepers to include more than one species in their review follow up.
Applications are currently open.
FARMING IN PROTECTED LANDSCAPES PROGRAMME
Offers grants for projects in National Parks and National Landscapes (previously AONBs) that help nature recovery, reduce the impacts of climate change, protect cultural heritage, and improve access and enjoyment.
Funding can cover 100% of the project’s costs which help to deliver the outcomes detailed here.
Applications will now be open until March 2026.
THE FARMING INNOVATION PROGRAMME
Offers funding for farmers, growers and foresters who want to develop and use new, innovative methods and technologies.
Grants are awarded on a competition basis, around key themes such as precision breeding and net zero farming.
Applications will open this year, further detail is not provided.
ACCELERATING DEVELOPMENT OF PRACTICES AND TECHNOLOGIES FUND
Funds collaborative farmer-led practical research projects aimed at innovating new ways to boost productivity, food security and nature recovery.
Applications will open in spring for projects between £50,000 and £100,000 in size.
NEXT STEPS
We will be watching DEFRA closely for any updates on when these grants will open. If you would like to register your interest in any grants, please call David Marrow on 01392 823935 or send an email to entitlements@townsendcharteredsurveyors.co.uk.
In the meantime, we can offer help with any grant schemes currently open, including the Sustainable Farming Incentive (SFI), Improve Animal Health and Welfare grants, and Create or Improve Woodland and Protect Tree Health grants.
Of particular note is the SFI scheme.
SFI is the nearest replacement scheme for the BPS and involves farming in a sustainable manner, so is especially suitable as a continuation of any previous Countryside Stewardship agreement or SFI Pilot Schemes which have or are soon to end.
There are a range of different complementary actions that can be stacked on the same area of land, whether covering grassland, arable, woodland, ponds, livestock or more. This allows you to tailor the agreement to be as simple or involved as you feel appropriate to your situation, the payment levels correspond to what is chosen. This is maybe best viewed as a less intense Countryside Stewardship, we can create an agreement that is very similar to what you would be doing on the land anyway, or you could choose options that provide more funding but with a greater impact on your farming system. Regardless of what you choose there is a standard additional payment on the first 50 ha of £40 per hectare for the first year of your agreement and £20 per hectare for the following 2 years of your agreement (assuming a 3-year agreement and that you will use at least this amount of land), so potentially up to £4,000 on top of any payment for the actual actions.