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https://defrafarming.blog.gov.uk/2024/11/27/an-update-on-capital-grants/

An update on capital grants

Posted by: , Posted on: - Categories: Countryside Stewardship, environmental land management schemes
Credit: Alison Day 

A budget of £5 billion has been allocated for farming and the environment over the next 2 years. This is the largest amount ever dedicated to supporting sustainable food production and nature recovery. 

While this is the largest budget we've ever had, we still need to manage it carefully and focus spending on the areas where it can deliver the most benefit for food security and nature. 

We provide capital grants for a wider range of items to support sustainable food production and environmental outcomes. So far this year, we have already paid out over £120m across these capital grant offers.

This year the demand for capital grants has been exceptional. As of November, RPA had received more applications for the standalone capital offer than over the whole of the 2023-24 financial year. The value of these applications has also increased significantly – with applications from May to November this year worth 42% more than all applications received last financial year. 

This high demand for some grant items has led to spending levels that aren't sustainable for this year. We will be giving more to capital grants this year than ever before. We are forecast to spend 49% more on capital grants this year than we paid out in 2023/24 and 125% more than in 2022/23. 

To ensure the funding can be prioritised to help build a sustainable farming sector, we’re simplifying and rationalising grant funding. 

Part of the overall capital grant offer has temporarily closed to most new applications. A further update on this will be shared in early 2025. The remainder of the capital items will remain open, and we will monitor take-up. 

In this post, we summarise the changes to capital grants. 

Prioritising funding and temporary closures 

Due to an overwhelming demand for some capital grant items, the main capital grant offer has temporarily closed to new applications - a total of 76 grant items. This is being done to prioritise funds for areas that will have the greatest benefit for food security and nature conservation.  

You’ll still be able to apply for the following grants during this period: 

If your application relates to the capital grant elements that are temporarily withdrawn, it will be on hold for now. You will be contacted in early 2025 with information about what happens next. 

If your application is for one of the grants that are still open, it is being processed. You should expect to receive an offer, provided there are no issues with your application.  

Payments under existing agreements will continue as usual following the current process. The change only impacts new applications. 

For more information on capital grant items, please visit (GOV.UK). 

Support for those with existing agreements 

In case you missed it, we recently published a post for those with existing Countryside Stewardship Higher Tier (CSHT) and Higher Level Stewardship (HLS) agreements: CSHT mirror agreements and HLS extensions: an overview

We’re committed to simplifying the application process for all our environmental land management schemes. 

To that end, a rolling application window for the CSHT will open in 2025. This change aims to make the process easier and more accessible, helping you benefit from these important environmental schemes. We’re also working to increase the scheme’s capacity to ensure more farmers can apply. 

More information on the CSHT will be published in December. By subscribing to the Farming blog, you’ll receive a notification whenever a post is published. 

Investing in food production and nature 

As mentioned, the £5 billion in funding over 2 years reflects the importance of investing in both food production and nature’s recovery. This funding will support not only the direct grants but also help safeguard against disease threats, provide recovery funds for farmers affected by extreme weather, and sustain projects that improve both farming productivity and biodiversity. 

£60 million has already been allocated to support farmers impacted by last winter’s extreme wet weather through the Farming Recovery Fund, and £208 million directed towards protecting against disease outbreaks. 

You can expect more information on the upcoming changes as we approach the new year.  

A further detailed update on the capital grants will be provided in early 2025, including specifics about new applications, eligibility criteria, and processes. The government will continue working to ensure that funding is directed where it will have the most benefit, helping you achieve both environmental and productivity goals. 

The Sustainable Farming Incentive (SFI) is open to farmers. There has been a 13% increase in the number of SFI agreements since July 2024 and in total there are nearly 30,000 live agreements.

Learn how SFI can work for you. 

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12 comments

  1. Comment by Ellice Hahne posted on

    In the past, the RPA have always said they would give us at least 6 weeks notice if they decide to close an existing scheme. Even if not 6 weeks, it would have been helpful to give a bit of notice instead of just closing the grant applications overnight.
    What will happen to applications submitted between August and now, which have also not been processed yet?

    Reply
    • Replies to Ellice Hahne>

      Comment by The Team posted on

      Hi Ellice,

      Thanks for getting in touch. We closed the window early due to exceptional demand over the Autumn. RPA had more applications from May to November 2024 than over the whole of the 2023-24 financial year.

      If your application is for one of the grants that are still open, it is being processed. You should expect to receive an offer, provided there are no issues with your application. You can view which grants are open here: https://www.gov.uk/government/collections/capital-items-guidance-for-applicants-and-agreement-holders

      If you applied for one of the grants that has been temporarily withdrawn, it will remain on hold for now. You will be contacted in early 2025 with information about what happens next.

      Payments under existing agreements will continue as usual following the current process. The change only impacts new applications.

      Hope that helps,
      The Team

      Reply
  2. Comment by Alex Macdonald posted on

    Your blog doesn't make it very clear at all whether applications submitted already (some in early September!) are being kicked into the long grass until Jan 2025.

    The blog does say the capital grant 'will temporarily close to most new applications' and then goes on to say 'the main capital grant offer will have closed to new applications' - will have closed when?! What does all of this actually mean?

    Reply
    • Replies to Alex Macdonald>

      Comment by The Team posted on

      Hi Alex,

      Thanks for getting in touch. If your application relates to the capital grant elements that are temporarily withdrawn, it will be on hold for now. This includes applications already submitted. You will be contacted in early 2025 with information about what happens next.

      If your application is for one of the grants that are still open, it is being processed. You should expect to receive an offer, provided there are no issues with your application.

      Payments under existing agreements will continue as usual following the current process. The change only impacts new applications.

      Hope that helps,
      The Team

      Reply
  3. Comment by Neve C posted on

    What will happen to those applications already made (over a month ago) and in the system which are yet to receive and agreement offer? It seems unfair to punish those who have made an application in the late summer-autumn, in readiness to accept and complete works, such as fencing, which would typically be undertaken in the winter months.

    Reply
    • Replies to Neve C>

      Comment by The Team posted on

      Hi Neve,

      Thanks for your feedback. If your application relates to the capital grant elements that are temporarily withdrawn, it will be on hold for now. This includes applications that have already been submitted. You will be contacted in early 2025 with information about what happens next.

      If your application is for one of the grants that are still open, it is being processed. You should expect to receive an offer, provided there are no issues with your application.

      Payments under existing agreements will continue as usual following the current process. The change only impacts new applications.

      Best wishes,
      The Team

      Reply
  4. Comment by J Douglas posted on

    Is the Farming Equipment and Technology Fund going to open in 2025?

    Reply
    • Replies to J Douglas>

      Comment by The Team posted on

      Hello,

      Thanks for getting in touch. We are in the process of simplifying and rationalising our grant funding, ensuring that grants are targeted to where they can deliver the most benefit for food security and nature. We will confirm future grant rounds in due course. Subscribe to the blog for the latest updates here: https://defrafarming.blog.gov.uk/subscribe/

      Best wishes,
      The Team

      Reply
  5. Comment by C posted on

    How can you go against the words on the RPA website that state there will be a 6 week notice before grants are closed? Also, Labour talk about a £5bn investment into farming over next two years - where is that being spent if capital grants are going and BPS has been reduced suddenly? How are we meant to plan our business when we don’t know whether we are coming or going?
    Betrayed, struggling and getting desperate here.

    Reply
    • Replies to C>

      Comment by The Team posted on

      Hello,

      Thank you for your feedback. We have shared this with the grants team. We chose to close the window early due to exceptional demand over the Autumn. RPA has seen a significant increase in the number and value of applications for some capital items over the last few months. We had more applications from May to November 2024 than over the whole of the 2023-24 financial year.

      If your application relates to the capital grant elements that are temporarily withdrawn, it will be on hold for now. This includes applications that have already been submitted. You will be contacted in early 2025 with information about what happens next.

      If your application is for one of the grants that are still open, it is being processed. You should expect to receive an offer, provided there are no issues with your application.

      Payments under existing agreements will continue as usual following the current process. The change only impacts new applications.

      Best wishes,
      The Team

      Reply
  6. Comment by Callum Preece posted on

    The guidance here refers to the closure of the scheme to 'new applications'. Can you please advise whether applications submitted prior to the closure are still being processed?

    Many thanks,
    Callum

    Reply
    • Replies to Callum Preece>

      Comment by The Team posted on

      Hi Callum,

      Thank you for getting in touch. If your application relates to the capital grant elements that are temporarily withdrawn, it will be on hold for now. This includes applications that have already been submitted. You will be contacted in early 2025 with information about what happens next.

      If your application is for one of the grants that are still open, it is being processed. You should expect to receive an offer, provided there are no issues with your application.

      Payments under existing agreements will continue as usual following the current process. The change only impacts new applications.

      Hope that helps,
      The Team

      Reply

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