Farm productivity grants launch and cover up to 50% of costs

Farm businesses wishing to invest in solar panels, robotics or automated equipment on-farm can now apply for grant funding through Defra’s Improving Farm Productivity scheme.

Funding of between £25,000 and £500,000 will be available for investment in robotic and automated equipment, with grants covering up to 50% of the total cost.

For solar projects, grants of up to £100,000 will be up for grabs and these will cover 25% of the total project cost.

See also: Defra secretary outlines £45m in new grant funding for farmers

The funding is intended to help aid crop and livestock production and increase renewable energy generation on farm.

Projects will be prioritised based on whether they can improve productivity, the environment or innovation, or introduce technology to address labour shortages.

The funding is open to farming and horticultural businesses. Agricultural consultancy Kelly Farm Consulting pointed out that contractors were also eligible, but only for the robotics and automated equipment grant.

These grants are under the second round of the Improving Farm Productivity scheme, part of the larger Farming Investment Fund.

Defra senior policy adviser Izzie Wells said: “We decided to increase the proportion of the costs that the grant will cover from 40% to 50% for robotic and automated equipment. This means the grant will pay for a greater proportion of the total project cost than under round one.”

How and when to apply

There is a two-stage application process, with an online checker open for applicants to check whether they are eligible for funding. This is due to remain open until 21 March.

Applicants found to be eligible through the checker will then be invited to submit a full application.

The timeframe to complete a full application will run until 30 June 2025, to give applicants time to secure planning if needed.

More detailed guidance is available on the government website.