New wave of capital grants for England's farmers

Last week Defra announced the re-introduction of capital grants for farmers in England. This scheme, which follows the unexpected closure in November 2024, is part of the government's £11.8 billion commitment to sustainable farming over this parliament.

Funding Details

The newly launched scheme includes £150 million of funding for 78 specified items across six groups of expenditure. The funding is intended to support a range of projects, including:

• Tree planting
• Flood prevention
• Hedgerows for biodiversity
• New livestock equipment to improve water quality

Four new items have been added since last year, including grants for assessing woodland condition, creating wildlife management plans, repairing drystone walls, and hosting educational visits. Funding limits have been set across four of the six groups, with a maximum of £25,000 per farm for water quality, air quality, and natural flood management, and £35,000 per farm for boundaries, trees, and orchards.

Fiona Hawkins, Partner in our Farms and Estates team commented on the new round of grants: "We welcome the opening of this new round of grants and urge farmers to look closely at what is on offer. It is important not to delay, as the scheme will close to applications once the available funding is committed. Defra has already warned that it might not be possible to give ‘reasonable notice’ of such closure.

This is a significant opportunity for farmers to invest in sustainable practices and improve their operations. The inclusion of new items shows a strong commitment from the government to environmental management.”

You can find the 2025 Capital Grants guidance and application information here.

To discuss how the announcements could affect you and your business, contact a member of our specialist Farms and Estates team here.