Budget boost for nature-based projects on marginal land

Woodland creation and biodiversity enhancement on marginal land presents a vital opportunity for farmers to generate additional income, without compromising existing agricultural operations or reducing food production.

The government needs to increase tree cover to meet its legally binding climate and nature targets.

This includes its aims of achieving net-zero carbon emissions by 2050 and planting 11 million trees as well as restoring or creating 500,000 hectares of wildlife-rich habitats outside protected sites by 2042.

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Environmental land management now qualifies for APR

As part of the recent Spring Budget, the government announced an extension to the existing scope of agricultural property relief (APR) to cover all environmental land management schemes from 6 April 2025.

This includes the Sustainable Farming Incentive, Countryside Stewardship and Landscape Recovery, alongside the England Woodland Creation Offer (EWCO) and other similar schemes.

Farmers and landowners who contribute to national nature targets by leveraging less productive land will be eligible for APR and free of inheritance tax. 

Boost for payments under the EWCO

In addition, Defra recently confirmed a boost for payments made under the England Woodland Creation Offer.

The maximum subsidy funding farmers can claim for planting trees on their land has increased by 45%.

Farmers can now access up to £11,600/ha under the scheme (compared with £8,000 previously).

There is an additional £900 available for planting on “low sensitivity land” which is less suited to food production.

This raise in funding follows Defra’s pledge to improve the speed of application approvals, particularly for low sensitivity land under the EWCO.

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A win-win for farmers and nature

These very recent positive developments regarding APR and the EWCO make now an ideal time for farmers to consider woodland creation and biodiversity enhancement on marginal land.

Worth noting is that farmers who create highly biodiverse woodlands will benefit from larger amounts of additional funding.

At Wanderlands, we are passionate about planting the right trees and enhancing biodiversity in the right places to generate significant benefits for your farm.

We believe nature-based projects are an effective way to help diversify your farming business, deliver environmental benefits, and create strong new revenue opportunities.

Watch a short case study film documenting the complete site transformation process for our recent project near Bristol below.

Biodiverse woodland creation with Wanderlands

Our land development team collaborate with foresters, soil scientists, ecologists, and rural landscape designers to carefully curate climate-resilient locations that generate high-integrity carbon and biodiversity units from high-quality woodland and habitat creation.

We support farmers every step of the way with nature-based projects, from professional site design and project management guidance to leveraging enhanced government grant structures and marketing the generated credits to prospective buyers in the nature markets.