Defra has announced the re-opening of the Capital Grants scheme, further grant funding for equipment, technology and innovation and increased funding for existing Higher Level Stewardship and Countryside Stewardship Higher Tier.

Capital Grants

Any applications that were made and were placed on hold while the scheme was paused will now be considered and grants will begin to be offered again.

The 2025/26 funding will re-open later in the year (date to be announced) and there will be a rolling application window.

Spending caps have once again been introduced across the four areas of capital grant funding. These will apply to all new applications but those already submitted and on-hold will not be subject to the spending caps.

  • £25,000 for water quality
  • £25,000 for air quality
  • £25,000 for natural flood management
  • £35,000 for boundaries, trees and orchards

The Farming Equipment and Technology Fund (FETF)

The FETF offers grants for equipment, technology and small infrastructure to boost productivity, improve slurry management and enhance animal health and welfare. Grants of between £10,000 and £25,000 will be available with applications opening later in the spring.

The Farming Innovation Programme (FIP)

Funding will be available to farmers, growers and foresters who want to develop and use new, innovative methods and technologies. Grants will be available through three rounds of themed competitions.

Accelerating Development of Practices and Technologies Fund (ADOPT)

ADOPT provides collaborative farmer-led, innovation grants, for farmers and farm businesses to trial new technology and methods on their farm. Applications will open in the spring and grants will be available to fund projects of between £50,000 and £100,000 in size.

Higher Level Stewardship and Countryside Stewardship

Defra have announced a 30m increase in payment rates for existing HLS agreements. All HLS agreement holders will be eligible and changes to payment rates will depend on the options contained in the agreement.

A new Countryside Stewardship Higher Tier scheme is also launching this year with certain farms and land managers having already been invited to apply. The rollout of CSHT is expected to continue throughout the year.

If you would like to discuss applying for a capital grant or any other form of funding, please contact one of the team and we will be able to discuss the options that would be best suited to you and your business.