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The Farming Investment Fund launches today 

Posted by: , Posted on: - Categories: Payments for equipment, technology and infrastructure

I’m pleased to say that the Farming Investment Fund launches today. 

This £27 million fund provides grants to farmers, growers, and foresters (including related contractors) so that they can invest in the things they need to improve productivity and enhance the natural environment.

This includes new equipment, technology, and infrastructure. 

The Farming Investment Fund is made up of 2 parts: 

  • The Farming Equipment and Technology Fund
  • The Farming Transformation Fund

In this post, I'll share details of how to apply and how we've adapted following feedback from farmers.

The Farming Equipment and Technology Fund

The Farming Equipment and Technology Fund is the new way for us to provide small productivity grants to farmers. 

We’ve based the scheme on the old small productivity grants scheme, but we’ve made some important changes based on feedback from farmers. 

Increasing the number of items on the list from 85 to 120 

We’ve made this change to better reflect the needs of all agricultural sectors including horticulture and forestry. We will keep this list under review and will continue to add and remove items as the fund evolves between rounds. 

Reducing the minimum to £2,000 

Small farmers found the minimum grant at £3,000 in the Countryside Productivity Small Grant (CPSG) was too high, so we’ve reduced the minimum to £2,000.  

Increasing the maximum grant to £25,000 

Increasing this figure allows us to add higher value items, but also larger variants of existing items, for example a wider range of direct drill sizes. 

Adding contractors 

We added contractors to the list of eligible applicants on the Farming Equipment and Technology Fund (including those serving livestock, dairy, arable and horticultural sectors). 

This reflects the many different methods employed in modern farming businesses and we hope this will allow equipment purchased through the fund to benefit more farmers. 

Changing the ‘all or nothing’ rule 

We changed the rules to allow applicants to remove items in certain cases. This could be where items can be bought as a package rather than separately, or where they have selected the wrong item or where manufacturers are unable to deliver all the items within the claim deadline. 

In these situations, we will look at requests to remove items on a case-by-case basis, subject to the grant requested still being above the minimum grant (£2,000).  

Animal Health and Welfare 

As part of the Animal Health and Welfare Pathway, we will be launching a new expanded grant offer late next year to co-fund investment in equipment, technology and infrastructure that will improve animal health and welfare.

We will soon launch an online suggestions box to give farmers, vets, academics and other industry stakeholders the opportunity to suggest which capital items are included. While we finalise the full offer, we will continue to fund items from Countryside Productivity Small Grant that improve animal health and welfare through Farming Equipment and Technology Fund. 

Slurry management 

We have also provided farmers with an important initial offer to upgrade their slurry management systems through an expanded slurry equipment offer. 

Offering strong environmental benefits, we will build on this through the offer of grants for additional infrastructure and equipment as part of future rounds of the fund. 

We believe these changes maintain the integrity of the scheme while addressing the key concerns raised by farmers and stakeholders.

We are still keen to hear from farmers as we continue to develop and evolve the fund through future rounds. 

The Farming Transformation Fund

Today we are opening the Water Management theme. This theme is dedicated to arable and horticultural businesses growing, or intending to grow, irrigated food crops, ornamentals or forestry nurseries. 

This offers grants towards capital items to improve farm productivity through more efficient use of water for irrigation, and to secure water supplies for crop irrigation by constructing on-farm reservoirs and adopting irrigation application equipment. 

We have reduced the maximum grant available to £500,000 (the minimum remains at £35,000) to enable us to ensure funding is available to support the widest number of farmers, whilst still being committed to supporting higher value projects which align to the fund’s objectives. Applicants may undertake larger projects, but the grant ceiling will be £500,000. 

This theme will be followed by further themes and grants in the coming months. 

Online checker

We've created an online checker for the Farming Transformation Fund to determine eligibility and the likelihood of success before submitting an application. 

Check if you can apply for a Farming Transformation Fund Water Management grant

Find out more, get involved, apply


I’ll be presenting information about the Farming Investment Fund and taking questions with my colleagues during a webinar on Mon 22 November 2021.

Sign up for the webinar


Defra's Future Farming and Countryside Programme Director, Janet Hughes, answered questions about the Farming Investment Fund on the Farming Forum.

Read the questions from farmers and Janet's responses


To ensure that both funds remain relevant to the industry, we’ll continue to engage with farmers and growers. 

To get involved, email 

Make an application

Apply for funding on GOV.UK

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  1. Comment by Tom Barrett posted on

    what about large equipment ?

    • Replies to Tom Barrett>

      Comment by The Team posted on

      Hi Tom,

      We have increased the maximum grant to £25k to allow for larger items on the list.

      We will keep the list under review between rounds with items added and removed.

      Best wishes,
      The Farming Investment Fund Team

  2. Comment by John hawkins posted on

    This "shopping list" really lacks imagination...
    Worse still.. each item has not been justified as why a farmer might even need these products? Farmers are now going to buy things they dont even know how to use effectively.
    Justify why we need these things please to avoid an EFRA enquiry... and dont even think about blaming it on the EU....
    I will ask for nothing from this list... boooo

    • Replies to John hawkins>

      Comment by The Team posted on

      Hi John,

      The list of items from Countryside Productivity Small Grants was retained to allow those who struggled to get the items they wanted another opportunity to do so.

      Following consultation with a wide range of stakeholders and representative bodies we have added an additional 38 items.

      The list will be kept under review between rounds with items added and removed following further engagement. If you'd like to be part of that, just email

      Best wishes,
      The Farming Investment Fund Team

  3. Comment by Axel posted on

    Is there a recording or transcript from yesterdays (22/11/2021) webinar on FIF???

    • Replies to Axel>

      Comment by Sarah Stewart posted on

      Hi Axel,

      Yes there is - we're just cropping some heads out of the video (for privacy) - when that's done, I'll make sure it appears in this post (and I'll drop you a line too).

      Should be in the next couple of days.

      Best wishes,

  4. Comment by Rob West posted on

    For drills the manual states The following are not eligible: Cultivators with over-seeders or broadcasters, minimum till drills, strip till drills, grassland over-seeders, and grassland broadcasters.

    Can I ask what is eligible under this payment?

  5. Comment by James posted on

    Hi why are only screw separators eligible. They don’t work with sand!

    • Replies to James>

      Comment by The Team posted on

      Hi James,

      Thank you for your interest in the Farming Equipment and Technology Fund (FETF).

      When the list of items was drawn up for round one of the FETF most of the available slurry separating systems required some form of structure to operate and therefore needed planning permission. At the time the only one suggested which could operate without needing a tower or specialist building to operate was the screw press. One of the requirements of the FETF is that equipment must not require planning permission or other third party consent.

      Following the popular first round of the FETF launched in November 2021, Defra and the RPA are now looking to review the list of items available for grant funding for round two.

      In the coming weeks we will be reaching out to farmers and stakeholders for support/input in reviewing the list of items that will be eligible for grant funding as part of future rounds.

      We hope this helps.

  6. Comment by Sarah Bertram posted on

    Please can you tell me if a new forrestry and tree surgeon business can get any funding
    If no funding for new what is available for existing contractors in this field..


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