£150 million in farming grants successfully allocated
Source: gov.uk (2025-08-01)

Government completes substantial investment in the future of farming as fairer approach to funding means more farmers than ever set to benefit from capital grants offer than in previous years.

Thousands of farmers will benefit from £150 million from Capital Grants funding supporting sustainable food production and environmental improvement.

With over 8,000 applications now submitted in under 5 weeks this is the fastest uptake ever for the offer and shows a clear appetite from the sector to transition towards nature-friendly farming.

Having funding thresholds in place for this round means more farmers have been able to access help to support their efforts to deliver for nature than in previous years, ensuring that every single penny of funding gets into farmers’ pockets.

Grants for reducing farming’s impact on water quality have proved to be the most popular, including upgrades to yard proofing to reduce agricultural runoff and fencing to keep livestock out of water courses.

The government is committed to supporting farming to reduce their impact on waterways, and these grants will help farmers to produce food in a way that is more sensitive to river catchments with reduced water pollution.

Minister for Food Security and Rural Affairs, Daniel Zeichner said:

I am delighted to see such strong demand in our Capital Grants offer, and strong momentum behind nature-friendly farming.

We know that for farm businesses to thrive, they need to be profitable, and we will ensure that every penny of the budget reaches farmers as part of the government’s Plan For Change.

Elsewhere, this round of funding will help support on farm efforts to enhance biodiversity with grants for hedgerow planting and laying, creating and restoring important habitats for wildlife. Grants will also promote sustainable farming practices by funding practical environmental improvements, such as planting shelterbelts to improve air quality, that benefit both nature and long-term farm resilience.

As part of a new approach to communicating with the sector Defra has published updates for farmers and land managers when key milestones for uptake were reached, including at 50%, and 75% and advised that the fund would close as soon as all funding was allocated.

Applicants whose application has been approved, will receive their money once the work has concluded and they have submitted claim for payment.

This government is committed to environmental land management schemes and believe these are the best tools to support the farming sector’s transition to sustainable food production and profitability.

Over the next 4 years, funding for Environmental Land Management schemes (https://defrafarming.blog.gov.uk/2025/06/16/spending-review-2025-a-commitment-to-farming/), paid directly to farmers, will increase 150% from £800 million in 2023/24 to £2 billion by 2028/29.

Shortly the Countryside Stewardship Higher Tier scheme will open for applications in September to those who have been invited to apply and there will be an update on the Sustainable Farming Incentive reformed offer.

A record £11.8 billion for sustainable farming and food production is being invested over this parliament. Alongside farming schemes, the government are slashing costs and red tape for food producers to export to the EU, have appointed former NFU president Baroness Minette Batters to recommend reforms to boost farmers’ profits, and we’re ensuring farmers get a bigger share of food contracts across our schools, hospitals, and prisons.