Farmers offered £150m Capital Grants to help boost profits

Thousands of farmers will benefit from £150m in new funding as the government opens a new round of its Capital Grants offer.

It funds a wide-range of on-farm projects – from tree planting and flood prevention to improved slurry storage and water filtration.

Last year, Capital Grants helped plant over 4,000 miles of hedgerows and upgrade slurry systems to keep rivers clean.

“British farmers work tirelessly to feed the nation and look after our countryside,” said environment secretary Steve Reed. “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 was welcomed by the Country Land and Business Association “especially in the wake of the Sustainable Farming Incentive abruptly closing”.

“The capital grants scheme was unexpectedly paused in the autumn and farmers need confidence that this round will run smoothly,” said CLA president Victoria Vyvyan. “It is pleasing to hear that four more items will soon be added to the Capital Grants offer, including accreditation for educational access visits and installing signs, and we encourage farmers to look closely at the options.”

Changes have been introduced to ensure that more farm businesses can access more grants by setting funding limits, including limits to four of the six groups of capital items in the Capital Grants offer.

An application can include items from each of the six groups but the funding limit for four of the groups is £25,000 maximum for water quality, air quality and natural flood management and £35,000 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 the government plans to open in 2026.