Defra injects £150mn of new cash into Capital Grants offer

The government has made £150mn of new funding available to support sustainable food production and environmental improvement through a new round of its Capital Grants offer.

The offer funds a range of on-farm projects, from tree planting and flood prevention to improved slurry storage and water filtration. Defra noted that last year capital grants helped plant over 4,000 miles of hedgerows and upgrade slurry systems to keep the country’s rivers clean.

Farmers and land managers are able to apply for a total of 78 items, ranging from supporting natural flood management projects to improving water quality on farms. Four new items have been added this year, including assessing woodland condition, creating wildfire management plans, repairing drystone walls and hosting educational visits.

Changes are also being introduced to ensure that more farm businesses can access the grants, including setting funding limits that maximise the number of farms benefiting and enabling Defra to manage budgets more effectively.

That includes funding limits to four of the six groups of capital items in this offer. An application can include items from each of the six groups, and the funding limit for four of the groups is:

• £25,000 maximum for each of the following three groups: water quality, air quality, and natural flood management;
• £35,000 maximum for the group covering boundaries, trees, and orchards.

Defra will also listen to feedback from farmers and use it to improve the offer ahead of the next round, which it plans to open in 2026.

Environment secretary Steve Reed said: “British farmers work tirelessly to feed the nation and look after our countryside. This major investment will give them the tools to cut pollution, restore nature, and grow their businesses.

“It forms part of the record £11.8bn we’ve committed to sustainable farming during this Parliament – boosting food security, supporting rural growth, and protecting the environment.

“The announcement is the latest in a series of steps taken by the government to support the farming industry. These include slashing costs for food producers by cutting red tape on exports to the EU, appointing former NFU president Baroness Minette Batters to recommend reforms to boost farmers’ profits, and ensuring farmers get a bigger share of food contracts across our schools, hospitals, and prisons.”