Capital grant scheme funding now 75% allocated

Defra has confirmed that 75% of the £150m capital grants funding available for farmers and land managers in England has now been allocated, just four weeks after applications reopened on 3 July.

The announcement follows a previous update on 22 July that half the available funding had already been committed.

A week later, on 29 July, the department updated its online blog to say the allocation had risen to nearly 75%.

See also: Capital grants cash going fast, CS Higher Tier coming soon

Charlie Davies, an agricultural consultant at Kelly Farm Consulting, said: “The speed at which the funding is being allocated certainly shows the level of demand, possibly higher than anticipated.

Application issues

“It is worth noting there are a number of farmers having issues with applications, particularly relating to existing capital options on parcels [including those that have expired within other agreements].

“Given the speed which the funding is being allocated, it is unlikely that many farmers will have these issues resolved before applications close.”

The current round of capital grants, which was suspended in November 2023, reopened earlier this month with funding for 78 specified items and actions.

These include slurry store covers, hedge planting, drystone wall repairs, leaky dams, agroforestry, and sprayer wash-down areas.

The scheme is intended to “reduce pollution and make the environment more resilient”.

Closure warning

Defra has warned that the funding round will close “as soon as the remaining budget is fully allocated”.

The department added that it would provide advance notice “if possible”, but cautioned that this “may not always be feasible”.

It also stated that “an eligible application does not guarantee funding” and that no further applications will be accepted once the scheme closes, including those already started but not submitted.

NFU deputy president David Exwood said: “It’s understandable that farmers and growers are making the most of the only available scheme to them at the moment.”

Defra plans to open a new round of capital grants in 2026.