Defra grant funding announcement 

Yesterday (25 February), Defra announced that several grant funds would re-open in the coming weeks.

The money is largely designed to support capital expenditure projects on farms and estates and similar funds have been very popular in the past.

There were also announcements on the Farming Innovation Fund, and positive news for those in Higher Level Stewardship agreements and land managers in protected landscapes.

Below is a summary of the announcement which we are advising clients to consider before embarking on projects.

If you need more information or would like to discuss how the grants could support your business, please get in touch with your local Carter Jonas office.

Farming Equipment Technology Fund (FETF)

The FETF’s fourth round will open this spring. Grant applications are invited for one-off purchases of equipment or technology to improve efficiency and business resilience.

This can support the purchase of machinery such as direct drills, as well as slurry management technology and equipment. Those with livestock can use the fund to support animal welfare improvements too.

Application guidance and the opening date is yet to be published, but the size of the pot will be £46.7m. Grants of between £1,000 and £25,000 will be considered.

Capital Grants Scheme

About 4,000 land managers have outstanding applications for capital grants for activities such as tree planting, equipment to improve air and water quality, or habitat restoration.

The grants were paused last year and those already submitted were put on hold. These will be reviewed and processed again.

An overall budget of £45m has been set, and each category has an annual claim value limit. However, we understand that there are about 4,000 applications on hold from last year which, once reviewed, will eat into this sum before new applications are considered.

New applications for capital grant funding will open later this year, but new caps will not apply on the amount each business can claim each year.

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

It may be possible to combine two categories for certain projects. For example, fencing could encompass £35,000 for boundaries plus £25,000 for water quality, but we await clarity on this.

Successful applicants have up to three years from approval to claim the funding.

Applicants can apply for more than one category but only one application can be submitted for each Single Business Identification (SBI) number per year.

It is not yet clear whether all the money has to be claimed from an application before a further grant is awarded in a subsequent year.

Accelerating Development of Practices and Technologies Fund (ADOPT)

As trialled by the government in January, ADOPT will offer financial support to farmer-led innovation projects for agricultural businesses to trial new technology and methods on their farm. 

Grants of £50,000 to £100,000 in size will be awarded from a £63m pot starting in April.

When the fund was originally announced under the Conservative government, trials of gene editing to increase yields and crop resilience against pests and diseases were given as one example of how the money could be spent.

But all practical research projects to explore “innovative ways of boosting farm productivity, food security and nature’s recovery” will be considered.

Farming in Protected Landscapes (FiPL)

FiPL has been extended past March 2025 and will continue to offer bespoke support for land managers within National Parks and landscapes which prioritise climate, nature, people and places at up to 100% of the project cost.

Higher Level Stewardship

Defra Secretary of State, Steve Barker, also announced an increase in payment rates for those in existing Higher Level Stewardship schemes.

We await detail on the financial value of this announcement.