Update on Funding for Farmers, Growers and Land Managers.

Following the NFU conference, DEFRA has released updates on funding for farmers, growers, and land managers. It is encouraging to hear that the Capital Grant Funding will be reopening.

Capital Grants

Important updates have been released for Capital Grants following the abrupt pause in November 2024 due to unprecedented demand. DEFRA have now advised that the Capital Grant is due to reopen in summer 2025 with several notable changes for the upcoming year. In the meantime, the RPA will be processing Capital Grant applications that were submitted prior to 26^th November 2024 with no further action required from applicants at this stage.

One of the key updates is the introduction of spending caps. This will limit the amount of funding that any individual business can apply for within each of the four categories. Funding in relation to water quality, air quality and natural flood management, are subject to a £25,000 cap per business, while funding for improving boundaries and tree planting will have a £35,000 cap. These caps have been designed and implemented to ensure a fair distribution of funds across a larger number of applicants is achievable. If you are an applicant awaiting a response for an application submitted prior to the November closure, the new caps will not apply if your application is successfully approved.

Further to this, only one Capital Grant application can be submitted per Single Farm Identifier (SBI) per year. Applicants can include multiple categories in a single application, but cannot exceed the spending cap of each category. Therefore it is more important than ever to plan ahead for the capital projects you wish to undertake throughout the year, ensuring that all items are included in your annual application to avoid missing any opportunities.

It should be noted that these spending caps do not apply to the Capital Funding required to deliver actions within a Countryside Stewardship Higher Tier agreement.

Farming Equipment and Technology Fund

Grants are expected to be available in the spring to support the purchase of equipment, technology, and small infrastructure aimed at improving productivity, enhancing slurry management, and boosting animal health and welfare. These grants will range from £1,000 to £25,000 with the announced £30 million budget for productivity and slurry management, along with an additional £16.7 million for animal health and welfare. This funding will assist land managers in purchasing new equipment and technology and for those keeping stock provide funding towards items such as livestock handling systems, mobile sheep dips, and footbaths, to name but a few.

Animal Health and Welfare Pathway

The Animal Health and Welfare Pathway will provide fully funded veterinary visits from the vet of the applicant's choice. These visits will offer veterinary advice, testing, and support to improve animal health, address diseases and disease immunity, and help increase and maintain the productivity of livestock.

Farming innovation Programme (FIP) competitions

DEFRA has announced funding to support farmers in trialing new technologies and farming methods aimed at achieving the following goals:

• Accelerating Development of Practices and Technologies (ADOPT): Opening in the spring, this initiative will provide £20.6 million to farm businesses for trialing innovative technologies and practices on their farms.
• Net Zero Farming: £12.5 million will be allocated to research into technologies and practices that aid the transition to profitable and environmentally friendly farming.
• Precision Breeding: An additional £12.5 million will focus on advancing precision breeding technologies, enabling farmers to adopt solutions for breeding livestock more efficiently.

Farming in Protected Landscapes (FiPL)

The Farming in Protected Landscapes (FiPL) programme will be extended for another year until March 2026 to continue to support and improve England's most precious areas of natural beauty.

Countryside Stewardship (CS) Higher Tier

The RPA are continuing to rollout the Countryside Stewardship (CS) Higher Tier are currently being rolled out on an invite-only basis, whereby applicants are required to undertake a pre-application in order to determine eligibility. Further details on the future rollout of CS Higher Tier are due to be confirmed in the summer.

Some options within the CS Higher Tier are compatible with SFI options, meaning that options under both schemes can potentially be applied to the same parcel of land. For example, the CS Higher Tier option (CAGF2) for managing low-density agroforestry on more sensitive land can be combined with the SFI option (CSAM3) herbal leys. This would generate a combined payment rate of £767 per hectare (£385 per hectare for agroforestry and £382 per hectare for herbal lays). It is worth considering whether combining options from both schemes is practical for your farming operation and how it could benefit your income stream.

It is crucial to complete the pre-application process before proceeding with a Higher Tier application. Working with Natural England and the Forestry Commission, to develop a well-prepared plan that meets all necessary requirements will significantly increase your chances of a successful application.

For further guidance on any of the above funding opportunities, please contact our team 01768866611