UK Government Reopens £225 Million Capital Grants Scheme to Boost Farm Profits and Sustainability.

Thousands of farmers across the UK are set to benefit from a fresh round of funding as the government launches its latest £225 million Capital Grants offer. The scheme aims to support sustainable food production while enhancing environmental outcomes.

The grants will fund a wide array of on-farm improvements, from tree planting and flood prevention measures to upgraded slurry storage and water filtration systems. In total, 78 items are eligible for funding under this round, helping farmers improve both profitability and environmental stewardship.

New additions to the scheme include support for -

• Assessing woodland condition
• Creating wildfire management plans
• Repairing drystone walls
• Hosting educational farm visits

To ensure fairer access and broader participation, Defra is introducing funding caps across four of the six item groups. This approach is designed to maximise the number of farms that benefit while enabling more efficient budget management. The funding limits are as follows -

• Up to £25,000 each for the Water Quality, Air Quality, and Natural Flood Management groups
• Up to £35,000 for the Boundaries, Trees, and Orchards group
• Applicants may submit proposals that include items from all six eligible groups.

Defra has also committed to gathering feedback from farmers to further refine and improve the scheme, ahead of the next planned round in 2026.

You can view the grant list below and use this link to start your application online.