What you need to know about capital grant changes

With Defra allocating £5 billion to farming and the environment over the next two years, here’s a breakdown of what’s changing and how it could impact you.

Why these changes are happening

According to Defra, demand for capital grants has soared this year. Between May and November, applications rose by 42% compared to the entire previous financial year. This has pushed spending on grants to unprecedented levels:

• 49% more will be spent on capital grants this year compared to 2023/24.
• 125% more is being invested compared to 2022/23.

To manage this, Defra say they are prioritising funds for areas with the greatest impact on food security and environmental recovery.

Temporary closures and what’s still open

From November 2024, most new applications for capital grants will be paused. This affects 76 grant items, but some remain available:

• Woodland Tree Health Grants: Protect trees from pests and diseases.
• Management and Capital Grants: Support Countryside Stewardship (CS) Higher Tier agreements.
• Protection and Infrastructure Grants: Deliver high-value environmental outcomes, such as peatland restoration.

If your application involves temporarily closed items, it will be held until early 2025, when more updates will be shared.

Support for existing agreements

Payments for ongoing agreements will continue as normal. Additionally, a rolling application window for CS Higher Tier agreements will open in 2025 to streamline the process and improve accessibility.

The bigger picture: supporting farmers and nature

The £5 billion fund will support grants, disease prevention, and recovery efforts for extreme weather-impacted farmers. For instance:

• £60 million has been allocated to the Farming Recovery Fund.
• £208 million is supporting disease outbreak prevention.

Stay informed

Further updates on capital grants and the Sustainable Farming Incentive (SFI) are coming in 2025. Subscribe to our Farming Newsletter to stay ahead of the latest developments: