Farmers will be able to apply for a share of £150m as a new round of Capital Grants open, designed to support sustainable food production and environmental improvements.
Last year, the scheme reportedly helped to plant over 4,000 miles of hedgerows, as well as upgrade slurry systems to keep watercourses clean. This round will include funding for on-farm projects including tree-planting, flood prevention, slurry storage and water filtration.
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 £11.8 billion we’ve committed to sustainable farming during this Parliament – boosting food security, supporting rural growth, and protecting the environment.”
A total of 78 options are available within Capital Grants, with four new items: assessing woodland condition, creating wildfire management plans, repairing dry-stone walls, and hosting educational visits.
Changes have also been made to ensure that more businesses can access funding, with limits in place to spread the total fund further, such as limiting funding to four capital items, although applicants can still apply for six groups of options.
The limits are:
- £25,000 for water quality, air quality and natural flood management
- £35,000 for boundaries, trees and orchards
Reactions to the announcement
Carter Jonas partner James Bradley responded to the announcement, advising that growers move quickly to secure funding.
“The sudden closure of the Capital Grants scheme last November meant many were unable to access the money they needed for a variety of projects. So while it is welcome that Defra is now accepting applications again, we anticipate that there will be pent-up demand.
“Therefore we are advising landowners with an investment in mind to act quickly. The £150m available in this round could equate to fewer than 6,000 successful applicants if most of the applications are for the maximum amounts of £35,000 or £25,000 per business, and DEFRA has said that the fund will close as soon as the money has been allocated.
“Farmers have seen very uncertain recent times and we hope that applications will be processed swiftly so that actions may be undertaken, particularly where the outcome has positive benefits either for the business or environment.”
Victoria Vyvyan, president of the Country Land and Business Association (CLA) added: “The launch of a new round of capital grants is welcome news for farmers at a time when there are few schemes open for which they can 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.”