Capital Grants 2026 now closed

The Capital Grants 2026 offer is now closed as the budget has been allocated.

This year, £225 million was made available through Capital Grants 2026 to support practical environmental improvements on farms and across the countryside, representing a 50% increase on the 2025 budget.

We've received approximately 17,000 applications from every corner of England, covering a wide range of projects that will help deliver benefits for the environment, support nature recovery and strengthen sustainable farming practices.

The number of applications we received shows the appetite across the sector to invest in projects that will improve water quality, strengthen climate resilience, enhance biodiversity and protect the character of our rural landscapes.

We are now moving into the next stage of the process and have begun assessing applications and issuing agreements. Due to the high volume of applications received, it's likely that agreement offers will continue to be issued throughout the remainder of the year.

We will process applications as swiftly and efficiently as we can, but to help avoid delays, please ensure any requested supporting evidence and documentation is submitted as soon as possible.

All supporting information should be provided to the Rural Payments Agency (RPA) within 10 days of your application form being submitted.

As set out in the scheme guidance, any applications that were started but not submitted before the offer closed will not be processed.

If you have received a Capital Grant offer through this or a previous round but, due to a change in circumstances, no longer intend to carry out the work or claim the funding, please contact the RPA.

An early look at the data 

The RPA monitors application data regularly. I wanted to share an early overview of what the early numbers indicate.  

Figures have been rounded for clarity. As the scheme has only recently closed, application totals are still being finalised and may change slightly as remaining checks are completed. 

Size of farms  

From habitat creation and boundary restoration to water quality and resource management projects, applications reflected the important contribution farms of all sizes make to nature recovery and sustainable land management. One-third of applications have come from farms under 50 hectares (ha). 

First-time applicants

One of the most encouraging figures we've seen is the number of first-time Capital Grant applicants this year. Of those who applied, approximately 9,500 were applying for a Capital Grants agreement for the first time. We're pleased to see so many new applicants engaging with the scheme, demonstrating growing awareness of the support available and the opportunities it offers to make practical improvements.

Popular items 

Of the 80 items available in the offer, the most popular items were: 

FG2 (Sheep Netting) is by far the most popular item, featuring in just over 11,000 submitted applications and accounting for approximately 20,000 km of fencing, roughly 1.5 times the Earth's diameter. The item is designed to protect sensitive habitats from grazing pressure, improve water quality by preventing livestock access to watercourses, and support the restoration and long-term management of priority habitats.

BN11 (Planting New Hedges) appears in approximately 5,000 applications, representing around 2,500 km of new hedgerows, roughly equivalent to the distance from Newcastle to Naples. These hedgerows will create vital wildlife corridors, providing food, shelter and nesting opportunities for birds, mammals and pollinators while helping to reconnect habitats across the landscape. Established with locally native species, they will create valuable new habitat, support biodiversity recovery and contribute to carbon capture, helping to protect, restore and enhance nature on farmland.

FG12 (Wooden Field Gate) featured in just over 4,500 applications. These gates support effective livestock management by controlling stock movement and preventing animals from entering sensitive areas where they could cause environmental damage. They also help protect important environmental, historic and archaeological features. In addition, wooden gate wings can provide secure, stock-proof crossing points over ditches, helping to maintain robust boundary management.

BN5 (Hedgerow Laying) appeared in around 2,500 applications, representing approximately 1,300 km of hedgerows, almost enough to stretch from Land's End to Hadrian’s Wall and back. The option restores mature hedges that have become gappy or overgrown, promoting healthy growth from the base to create dense, stock-proof boundaries. This helps reconnect hedgerow networks, providing valuable habitat and food sources for birds, bees and other pollinators, while supporting biodiversity recovery, carbon storage and the enhancement of nature across the farmed landscape.

Investing in the future  

Although applications are still being processed, these figures provide an early indication of the ambition shown by farmers and land managers across England. 

From restoring habitats and enhancing biodiversity to improving water quality and protecting historic features, the projects proposed have the potential to deliver lasting benefits for local communities, the natural environment and the long-term resilience of farm businesses. 

As climate and weather-related pressures continue to grow, these practical improvements will help create a more sustainable and resilient countryside for future generations. 

Next steps 

While our immediate focus is on assessing applications and issuing agreements, we're also taking the opportunity to learn from this year's offer. 

Working closely with colleagues in Defra, we're gathering feedback and reviewing customer experiences to understand where we can make improvements.  

Whether it's feedback given when applicants call us, comments on our blog posts, or conversations with farmers and land managers at agricultural shows, we're listening carefully to what customers are telling us.