DEFRA grant funding announcements

The Department for Environment, Food & Rural Affairs (DEFRA) confirmed that several grant funds will reopen, providing financial support for farmers and estates.  These grants are designed to help improve productivity, sustainability and innovation across the sector.  However, this has been somewhat overshadowed by the closure of the Sustainable Farming Incentive (SFI) scheme, with payments stopped with immediate effect.

Which grants are re opening?

Farming Equipment and Technology Fund (FETF)

The fourth round of the FETF will open this spring, offering grants for one off purchases of equipment and technology to enhance efficiency and resilience.

Funding will support the purchase of items such as direct drills, slurry management technology and livestock welfare improvements. The total funding available is £46.7m, with grants ranging from £1,000 to £25,000.

Capital grants scheme

The Capital grants scheme will reopen later this year, following a pause to the scheme in 2024.  Around 4,000 applications from last year are being reviewed and processed, meaning that much of budget for this scheme may be used up before new applications are considered. The overall budget is £45m, with funding caps set for different categories

• £25,000 for water quality improvements
• £25,000 for air quality measures
• £25,000 for natural flood management
• £35,000 for boundaries, trees and orchards

Successful applicants will have up to three years to claim the funding and farmers and estates can apply for multiple categories under a single application.

Accelerating Development of Practices and Technologies Fund (ADOPT)

Launching in spring 2025, ADOPT will provide grants of between £50,000 and £100,000 from a £63m fund to support farmer led trials of innovative technologies and methods. This funding aims to support projects that improve productivity, food security and environmental sustainability.

Farming in Protected Landscapes (FiPL)

FiPL has been extended beyond March 2025 and will continue to offer up to 100% funding for land managers in National Parks and protected landscapes. This funding prioritises projects that support the climate, nature conservation, and rural communities.

Higher Level Stewardship (HLS) payment increases

DEFRA has also announced a £30m increase in payment rates for HLS agreements to ensure a fairer compensation for farmers delivering environmental benefits under these schemes.

Farming Innovation Programme (FIP)

FIP continues to fund research and innovation in the agricultural sector.  Upcoming funding rounds will focus on precision breeding, net zero initiatives and industry led R&D competitions, with a total investment of £98m committed to ongoing projects.