CLA welcomes return of £150m capital grants scheme
THE CLA (Country Land and Business Association) has welcomed the opening of a new round of the
capital grants offer, which will provide £150 million in funding to farmers.
With the Sustainable Farming Incentive (SFI) abruptly closed for new applications earlier this year,
members currently have limited options for support. Defra has today (3 July) confirmed that farmers
will be able to apply for funding for 78 items, including planting hedgerows for biodiversity,
introducing natural flood management measures, and measures to improve water quality such as
new livestock equipment.
They will also be able to apply for four new capital items to assess woodland, create a wildfire
checklist, repair stone walls and host educational visits.
It comes after the scheme was unexpectedly paused last autumn, with Defra citing high demand
and budget pressures.
CLA President Victoria Vyvyan said: “The launch of a new round of capital grants is welcome news
for farmers at a time when there are few schemes open for which they can apply, especially in the
wake of the Sustainable Farming Incentive abruptly closing.
“The capital grants scheme was unexpectedly paused in the autumn and farmers need confidence
that this round will run smoothly.
“It is pleasing to hear that four more items will be added to the capital grants offer, including
accreditation for educational access visits and installing signs, and we encourage farmers to look
closely at the options.”
What is the capital grants scheme?
The scheme helps farmers and businesses by providing funding to cover part or all the cost of
activities such as tree planting, buying equipment to improve air and water quality, or habitat
restoration.Last year, the grants helped plant over 4,000 miles of hedgerows, Defra said.
There will be funding limits to four of the six groups of capital items in the new offer. An
application can include items from each of the six groups. The funding limit for four of the groups is:
· £25,000 maximum for each of the following three groups: water quality, air quality, and natural
flood management
· £35,000 maximum for the group covering boundaries, trees, and orchards
Defra said it will “listen to feedback” from farmers and use it to improve the offer ahead of the
next round, opening in 2026.
More details about the reformed SFI scheme are due to be published this summer.
