Timed around the NFU conference and the start of meteorological spring, Defra have put out a small suite of announcements since late February giving some guidance on their future intentions.
Many currently still have vague dates such as ‘spring’ or ‘later this year’ attached to them. ‘Spring’ could actually be anytime from now until 21st June. ‘Summer’ could be any time after this until 21st September.
This article summaries announcements on:
Capital Grants
A new Farming Equipment and Technology Fund (FETF) round
The Farming Innovation Programme (FIP)
A new Accelerating Development of Practices and Technologies (ADOPT)Fund
Countryside Stewardship and Farming in Protected Landscapes schemes
Animal Welfare Review Visits
Capital Grants scheme will re-open in the summer, after a pause in November 2024. All applications submitted before the pause will now be processed. Following the temporary closure of the Capital Grants scheme in November 2024, there is now sufficient funding for Capital Grants for 2025/26. This also means Defra can now process the 4,040 completed Capital Grants applications that were on hold. If you submitted an application before 5pm on Tuesday 26 November 2024, and it was put on hold, you don’t need to do anything. Your application will be processed and, if approved, you’ll receive an agreement to complete your works as planned. The Rural Payments Agency (RPA) will be in touch once your application has been processed. If you haven't applied, or didn’t complete an application before the 26th November deadline, you’ll be able to re-apply through the Rural Payments service later this year.
Changes to the Capital Grants scheme
Defra have made some changes to the way the scheme will now be run, which include controls to manage demand. Capital Grants will still support investments that improve water quality, air quality, natural flood management, restoring and improving boundaries and tree planting, but with a few tweaks:
Last year saw huge demand, with some applications worth over £1 million. This meant funds were used up quickly and many farmers missed out. The new controls aim to ensure smaller farms and high-priority projects get a fair chance.
Caps on funding
Limits will be set on how much you can apply for in each of the 4 categories. The new limits will be:
£25,000 for water quality
£25,000 for air quality
£25,000 natural flood management
£35,000 for boundaries, trees and orchards
The cap does not apply to capital plans.
You can apply for a grant in more than one category but only one application per Single Business Identifier (SBI) can be submitted per year.
If you submitted an application and it was put on hold (and you’re eligible) the new caps will not apply to you. Defra will honour the offer as it was when you applied.
Rolling application window
You'll be able to apply throughout the year and Defra will continue to monitor the situation to make sure demand doesn’t exceed the available funding.
This will help ensure a fair process for everyone and that the funding goes to projects with better environmental outcomes.
A new (4th) round of the Farming Equipment and Technology Fund (FETF) will become available in the spring, providing grants of between £1,000 and £25,000. In total, £30 million will be available for productivity and slurry, and £16.7 million will be available for animal health and welfare.
The Farming Innovation Programme (FIP)
Through FIP, grants worth more than £42.5 million are available to farmers, growers and foresters who want to develop and use new, innovative methods and technologies.
You'll be able to apply for grants through the following competitions:
A thematic competition that builds on the opportunities unlocked by the Genetic Technology (Precision Breeding) Act 2023, with up to £12.5 million available to fund research to deliver the practical benefits of precision breeding technology to farmers. For example, enhanced disease resistance or reducing the need for nutrients or pesticides.
A thematic competition focused on Net Zero farming with up to £12.5 million across projects to fund research focusing on technologies and practices to help transition the sector towards Net Zero.
Further Industry-led competitions with up to £17.6 million across projects. These will range from early-stage feasibility to those at a later stage in the R&D pipeline towards commercialisation.
So far, through FIP, Defra have invested £51.8 million, with an additional £98 million committed to ongoing projects advancing agri-technology research.
This funding has supported innovative trials, such as the use of semi-transparent solar panels in glasshouses and polytunnels. This allows sunlight to reach plants, enhancing growth and generates clean energy, contributing to sustainable farming practices.
The funding has enabled research into the use of daffodil extract in cattle feed, which could help reduce methane emissions from cows.
Case studies are available to read on the FiP webpage, Farming Innovation Programme.
Accelerating Development of Practices and Technologies Fund (ADOPT)
The new ADOPT fund, will provide £20 million of additional funding for farmer-led trials that bridge the gap between new technologies and their real-world application, giving farmers the confidence investments in tech will deliver the returns they need.
ADOPT provides collaborative farmer-led, innovation grants, for farmers and farm businesses to trial new technology and methods on their farm. These practical research projects will help to prove innovative ways of boosting farm productivity, food security and nature’s recovery across England. It will open for applications in spring 2025 and grants will be available to fund projects of between £50,000 to £100,000 in size.
To ensure farmers and growers can access ADOPT and the evidence generated effectively, Defra have established a bespoke Support Hub to support farmers in their application and encourage collaboration. The hub will be led by RSK ADAS with support from the UK Agri Tech Centre and Soil Association.
Higher Level Stewardship Payments
Defra acknowledge that HLS agreement-holders have led the way in environmental land management for years, protecting habitats, restoring landscapes, and boosting biodiversity. They play a vital role in managing important habitats and delivering environmental benefits, such as maintaining species-rich grasslands and moorland.
To better reflect this contribution and to support the continued protection and management of these sites, payment rates will increase across a range of the HLS options.
All HLS agreement holders will be eligible, but the change to payment rates will depend on the options contained in the actual agreement. Agreement holders will see an increase to the value of their agreements from the 2025 claim year. If you have an option with a payment rate that is increasing, the new rate will be paid as part of your usual claim payment from December 2025.
Defra will publish a table showing the updated payment rates for each HLS option as soon as possible, and also write to HLS agreement holders by April 2025 to explain the new rates.
Countryside Stewardship Higher Tier (CSHT) scheme roll out
Defra are now rolling out an improved CSHT scheme. Currently, access to the scheme is by invitation only as Defra continue to test the pre-application process. However, there will be opportunities for other farmers and land managers to access CSHT in the future.
CSHT focuses on delivering ambitious and targeted environmental outcomes, so applicants need to work with Natural England and Forestry Commission advisers to develop application plans. If you want to manage woodland through CSHT, you’ll need to complete a Woodland management plan as a first step. You must complete the pre-application process before making an application. This advice ensures that your application is well-prepared, meets the necessary requirements and has the best chance of success. It is an essential requirement towards being able to make an application later in the year. If you are not able to enter CSHT straightaway, you can still take steps to prepare, including applying for capital grants to help you prepare plans to support a CSHT application. For example, grants are available for an implementation plan, woodland management plan, agroforestry plan, species management plan or a feasibility study, as well as a Moorland Mapping tool.
The guidance on GOV.UK sets out what you can do now to prepare to apply and what funding will be available. The Forestry Commission recently held a webinar for woodland applicants preparing for CSHT. Defra will confirm details on the further rollout of CSHT, including the next priority groups to be invited, in the summer.
A recent Amendment as been made to action CUP2: Manage rough grazing for birds. The available area for this action is a land parcel of at least 2 hectares in size. The upper limit of 25ha has been removed.
The Farming in Protected Landscapes (FiPL) programme has been extended for another year, until March 2026
Farmers and land managers in England’s protected landscapes can now apply for funding from the Farming in Protected Landscapes (FiPL) programme until March 2026, with an additional £30 million of funding. The programme offers grants for projects in National Parks and National Landscapes (previously called Areas of Outstanding Natural Beauty).
These grants support projects that:
help nature recover
reduce the impacts of climate change
protect and enhance cultural heritage
improve access to and enjoyment of beautiful landscapes
So far, FiPL has engaged over 7,000 farmers and land managers, funding more than 4,600 projects. For more information about FiPL, visit the guidance on GOV.UK. You can also contact your local protected landscape body for advice about whether your land or project is eligible. National Parks England have also just published its Farming in Protected Landscapes Year 3 report.
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