Tree Production Capital Grant (currently closed)
Source: gov.uk (2025-10-02)

A closed grant that provided funding to improve, expand, automate or mechanise the production of trees and tree seed.

The Tree Production Capital Grant (TPCG) is currently closed for new applications.

If you are a TPCG agreement holder, find out how to make a claim (https://www.gov.uk/government/publications/tree-production-capital-grant-how-to-make-a-claim/how-to-make-a-claim-tree-production-capital-grant).

If you have questions, email xxx@xxx.xx (mailto:xxx@xxx.xx).

TPCG supports tree nurseries and tree seed suppliers to improve the productivity and resilience of their operations, enabling a reliable supply of diverse, biosecure, and high-quality trees to England.

You can apply for up to 50% of the cost of investments up to a maximum grant value of £175,000.

Applications closed on 25 June 2025.

About the fund

The TPCG is a competitive grant, which provides funding to help tree nurseries and seed suppliers invest in projects that improve, expand, automate or mechanise their operations. The funding aims to increase the resilience and productivity of the UK’s tree production sector enabling a reliable supply of diverse, biosecure and high-quality trees to England.

The government has set legally binding targets to increase tree and woodland cover to 16.5% of total land area by 2050. Meeting these planting targets requires a reliable domestic supply of tree planting material.

The TPCG is designed to support tree and tree seed suppliers to meet this demand by improving their productivity and resilience. It also aims to enhance the quality and diversity of trees produced. This will enable us to plant resilient and productive treescapes that support biodiversity and are resilient to stresses such as climate change and pests and diseases.

Up to £2 million grant funding is available. The grant is open to tree and tree seed suppliers of all sizes, as well as new entrants looking to diversify into the sector.

The fund been designed to complement the:
- Tree Production Innovation Fund (https://www.gov.uk/guidance/tree-production-innovation-fund): supporting research projects that will enhance UK tree production methods
- Seed Sourcing Grant (https://www.gov.uk/guidance/seed-sourcing-grant): aiming to increase the quantity, quality and diversity of seed sources in England
Who can apply

The Tree Production Capital Grant is currently closed for new applications.

To be eligible for funding, you must be UK-based and will need to supply or plan to supply trees or tree seed to England.

Applicants to the TPCG can include:
- private sector nurseries and seed suppliers
- public sector organisations such as local authorities
- new entrants to tree production from horticulture or agriculture
- environmental NGOs
- community tree nurseries
The grant is open to forestry nurseries as well as those that produce amenity, fruit, or nut trees and tree rootstock.

The grant is intended to support the production of trees available for planting, excluding Christmas trees.

Forestry England and Forest Research are not eligible for funding under the TPCG.

Information for previous applicants

Several changes have been made to the grant for 2025. These include:
- the new objective for this round: ‘to increase the resilience and productivity of the UK’s tree production sector enabling a reliable supply of diverse, biosecure, and high-quality trees to England’
- the capacity question has been removed from the application form and productivity is now double-weighted
- new agreements will include an obligation period, which will cover projects for 2 years following their final claim
- applicants who are new to tree or tree seed production must submit a business plan in support of their application
Funding available

The TPCG provides 50% funding for projects up to a maximum grant value of £175,000. Projects must have a minimum total cost of £10,000 (£5,000 grant value) to be eligible.

You should consider the source of your match funding before applying and explain this in your application. You cannot source match funding from another Defra funded grant.

Funding is available for the 2025-2026 financial year only. Agreements are likely to be issued in August 2025.

All items must be received and work completed between the start of your agreement and 27 March 2026. Before applying, make sure you are confident that you can complete all activities and receive all items between these dates. Any spend after 27 March 2026 will not be eligible to claim for.

Project eligibility

Example projects suitable for funding can include:
- investments in machinery, such as transplanting systems and grading machines
- polytunnels and associated infrastructure
- rainwater harvesting and irrigation systems
- buildings, such as packing sheds or coldstores
- biosecurity through improved water treatment and refrigeration equipment
- seed processing or storage equipment
- costs for purchasing or developing nursery management software
- long-life trays
You can only submit one bid during each funding round. However, your bid can include multiple different investments.

Read our TPCG case studies (https://www.gov.uk/government/collections/tree-and-seed-production-case-studies) to find out how funding benefitted previous grant holders.

The TPCG intends to support the supply of trees propagated and grown in the UK. If you buy plants to grow on, you will be expected to outline the source of those plants.

You can claim for these eligible costs :
- equipment and machinery
- delivery and shipping costs of items purchased
- personnel costs related to the construction or implementation of the items purchased at the applicant’s site of operation
- one-off costs for purchasing or developing software
You cannot claim for:
- retrospective funding for work already carried out or to be carried out before a grant agreement is signed
- maintenance costs of the items purchased
- training for staff to use items purchased
- trees or tree seed to be delivered as the outputs of the project proposal
- consumables, for example compost, fertiliser or single use trays/containers
- software licenses or subscription fees
- items bought on hire purchase or on lease
The grant is paid in arrears. To claim for an item, you must have purchased and received it. Make sure you can purchase items up front before claiming.

How to apply

The Tree Production Capital Grant closed on 25 June 2025.

You need to email us a completed:
- application form
- finance spreadsheet
- evidence of financial viability (when applicable)
- business plan (when applicable)
Go to the TPCG application form page (https://www.gov.uk/government/publications/tree-production-capital-grant-application-form) where you’ll find these forms and further guidance on how to complete the application form.

Watch the ‘TPCG how to apply webinar’ recording for detailed information on how to complete and submit your application documents:

Watch the video: TPCG how to apply (https://www.youtube.com/watch?v=hmuBETBxbcU)

Application form

In your application form, you need to provide details about your organisation and your proposed project. You must also provide written responses to 7 assessed questions, which will be scored by the TPCG evaluation panel.

Finance spreadsheet

In your finance spreadsheet, you will need to itemise project costs and funding applied for. All costs should be exclusive of any recoverable VAT.

Evidence of financial viability

If you are a local authority, university or public body, you may need to submit evidence of financial viability with your application. Check the TPCG application form guidance (https://www.gov.uk/government/publications/tree-production-capital-grant-application-form) for details.

Business plan

If you have been trading as a tree or tree seed producer for 1 year or less, you must also provide a business plan to support your application. This should demonstrate your objectives, strategies and forecasts. Refer to the GOV.UK guidance on writing a business plan (https://www.gov.uk/write-business-plan).

Assessment process

All eligible applications will be scored by an evaluation panel. Find out more about how applications are assessed in the TPCG application form guidance (https://www.gov.uk/government/publications/tree-production-capital-grant-application-form).

We will notify you of our TPCG funding decision by 6 August 2025.

If the panel needs further information about your project before making a decision, we may issue an ‘offer in principle’. We will send you a form with the panel’s comments and requests. You will have 2 weeks to respond. Your response will help us decide whether to offer you a funding agreement.

If your application is successful, you will be issued with a grant agreement. You must not begin your project until you have signed your agreement and returned it to the Forestry Commission. Expenditure outside of the funding period will not be eligible to claim back.

Reporting and payments

You can claim at any time up to a maximum of once per month. You must have received an item or completed a piece of work before you can claim for it. The deadline for final claims is 27 March 2026.

Find out more about how to make a TPCG claim (https://www.gov.uk/government/publications/tree-production-capital-grant-how-to-make-a-claim/how-to-make-a-claim-tree-production-capital-grant).

We pay claims in arrears by BACS transfer following receipt of completed claim forms. Payment of the claim will be made within 22 working days of us approving your claim. All claims must be supported by evidence of eligible expenditure (for example, invoices/timesheets) and photos and descriptions of purchased items or work carried out to date.

Items should not be paid for by cash and all invoices must be addressed to the grant recipient organisation.

You must complete a post-implementation report within 3 to 6 months of submitting your final claim.

Obligation period

All TPCG grant agreements will include an obligation period, which will start from the date you submit your final claim and lasts for 2 years. During that time, you must:
- maintain ownership of items purchased using your TPCG grant funding
- make use of and maintain any items purchased using your TPCG grant funding for the purpose set out in your grant agreement
- submit a post-implementation report
We may conduct a site visit during this period and will clawback funds if you have not complied with these.

Further information

The Forestry Commission reserve the right to change the deadline for applications or make changes to the application process at short notice.

The Forestry Commission reserve the right to amend, add to or withdraw all or any part of the funding application process at any time during the process. All changes and updates are recorded on this page, read page updates (https://www.gov.uk/guidance/tree-production-capital-grant#full-publication-update-history). If you have already submitted an application, we will contact you by email to inform you of these changes.

Material changes (for example to the closing date or eligibility rules) will also be communicated via the Forestry Commission’s grants and regulations eAlert (https://www.gov.uk/government/collections/email-alerts-ealerts-for-grants-and-regulations-customers).

Neither the Forestry Commission nor its respective advisers, directors, officers, members, partners, employees, other staff or agents:
- makes any representation or warranty (express or implied) as to the accuracy, reasonableness, or completeness of this guidance
- accepts any responsibility for the information contained in this guidance or for the fairness, accuracy or completeness of that information nor shall any of them be liable for any loss or damage (other than in respect of fraudulent misrepresentation) arising as a result of reliance on such information or any subsequent communication
Contact us

If you have questions about the TPCG or the application process, email xxx@xxx.xx (mailto:xxx@xxx.xx).

To get the most up to date information on this grant sign up for our eAlert (https://www.gov.uk/government/collections/email-alerts-ealerts-for-grants-and-regulations-customers).

Find out about other grants from the Forestry Commission (https://www.gov.uk/government/collections/where-to-find-grants-for-trees-and-woodland).

Find out how to make a complaint or appeal (https://www.gov.uk/government/organisations/forestry-commission/about/complaints-procedure).