DEFRA announces return of £150m capital grants
3rd July 2025
UK government has just announced the opening of a new round of the £150 million capital grants offer.
The offer funds a wide range of on-farm projects, from tree planting and flood prevention to improved slurry storage and water filtration.
DEFRA confirmed that last year alone, capital grants helped plant over 4,000 miles of hedgerows and upgrade slurry systems to keep rivers clean.
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.”
Four new items added
Under the new round of the capital grants offer, 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, 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 these grants – making it fairer for farmers by setting funding limits that maximise the number of farms benefiting while enabling the department to manage budgets more effectively, DEFRA said.
This includes funding limits to four of the six groups of capital items in this capital grants offer. An application can include items from each of the six groups. 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 has also promised to listen to feedback from farmers and use it to improve the offer ahead of the next round, which is planned to open in 2026.
READ MORE: DEFRA criticised for sharp fall in delinked payments
READ MORE: DEFRA announces £30m boost to Higher Level Stewardship scheme payments
‘Farmers need confidence’
CLA president Victoria Vyvyan welcomed the launch of a new round of capital grants. She said that the news comes at a time when there are only a few schemes open for farmers to apply, 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.
“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,” Ms Vyvyan concluded.
READ MORE: DEFRA retracts SFI closure for thousands of farmers
Read more grants news.
