Lizzy Elgie, Farm and Environmental Advisor at StephensonsRural, recaps the short-lived reopening of the Capital Grants scheme and outlines what funding options are still available for farmers and landowners.

Following the announcement on 3 July by Secretary of State Steve Reed about the immediate reopening of the Capital Grants offer with £150 million of funding available, there was great excitement after the unexpected closures of the Capital Grants scheme in November 2024 and the Sustainable Farming Incentive (SFI) in March this year.

However, less than a month after its opening, the Capital Grants offer closed on 1 August as the entire budget had already been allocated, despite spending caps being put in place to enable as many people as possible to benefit from the scheme, including £25,000 for water quality, air quality and natural flood management, and £35,000 for boundaries and tree planting.

The purpose of the Capital Grants offer is to help farmers and landowners make practical environmental improvements to their holdings. Popular options have included hedgerow planting, fencing, concrete yard renewal and dry-stone wall restoration.

Despite welcome updates from the Rural Payments Agency (RPA) on how much of the budget had been spent, the short application window - coupled with an early harvest - left some disappointed, having missed the chance to apply this time.

At StephensonsRural, we’re pleased that during the four-week window the Capital Grants scheme was open, our stewardship and grants team successfully submitted over 30 applications, with a total value exceeding £540,000. Working within the new spending caps, the team collaborated closely with clients to maximise the value of each application, helping to deliver meaningful benefits for both farm businesses and the environment.

The question that many farmers and landowners currently have is what comes next?

Currently available is the Farming in Protected Landscapes (FiPL) grant. To be eligible, land must be located in a National Park or Area of Outstanding Natural Beauty, and any proposed projects must be completed by March 2026.

Looking ahead to future stewardship schemes, September 2025 will mark the start of Countryside Stewardship Higher Tier (CSHT). Although initially available by invitation only, the Department for Environment, Food & Rural Affairs (DEFRA) has indicated plans to expand access over time.

For those interested in CSHT, it’s important to review the year-round capital grant options now available, as these can help demonstrate how your holding may be eligible.

We are also expecting an update from DEFRA this summer on the future of the Sustainable Farming Incentive (SFI), due to return in 2026. Following the unexpected closure of SFI 24 in March 2025, and with Basic Payment Scheme (BPS) delinked payments continuing to decline until 2027, demand for the relaunched SFI is likely to be high.

As for the Capital Grants scheme, DEFRA has announced plans for another round in 2026, though further details have yet to be confirmed.

If you would like to discuss any of the above, please contact Lizzy Elgie or Chris Muir.