Early Preparation Essential for Capital Grants Reopening in July

The Rural Payments Agency (RPA) has confirmed that the Capital Grants offer will reopen for applications in July, offering farmers and land managers another opportunity to secure funding for capital works. While the total budget for 2026 has increased to £225 million, strong uptake is anticipated once again, meaning early preparation will be critical for those intending to apply.

Capital Grants provide one‑off payments for specific items aimed at delivering environmental improvements. Unlike longer‑term agreements, such as Countryside Stewardship or the Sustainable Farming Incentive, these grants focus on practical, tangible works and can often be used to address infrastructure needs that support regulatory, compliance or environmental objectives.

The 2026 offer is expected to cover items within six groups: boundaries, trees and orchards, water quality, air quality, natural flood management, assessments and improvements. Eligible works are likely to include hedgerow creation, track improvements, roofing of agricultural infrastructure, watercourse protection and environmental assessments. The full list of eligible items is due to be published in May and is anticipated to reflect previous rounds.

As in 2025, spending caps will apply to four of the six groups: £25,000 for water quality, air quality and natural flood management and £35,000 for boundaries, trees and orchards. Items within the assessments and improvements categories sit outside these caps. Only one application is permitted per Single Business Identifier, making careful prioritisation essential.

Defra has placed increased emphasis on the submission of complete applications, with all supporting evidence being provided at the outset. Missing documentation caused delays and rejections in earlier rounds and applicants are being urged to avoid repeat issues. This includes ensuring land parcels are free from conflicting capital claims, previous agreements are fully closed and any required Catchment Sensitive Farming Officer endorsement is secured in advance.

Despite the increased budget, funding will remain finite. Once the scheme opens, updates will be issued as funding reaches its threshold, after which the application process may close at short notice.

With the Sustainable Farming Incentive reopening in June and Capital Grants following in July, many businesses will be navigating multiple schemes in quick succession. The key message is that early technical preparation and alignment with wider business objectives will likely prove decisive in securing funding this summer.

To discuss grant applications further, please contact:

Megan Rogers (Kettering) on 07747 625716

Maisie Evans (Shrewsbury) on 07825 082540

Tom Harris (Towcester) on 07747 567910

Vicky Price (Hereford) on 07789 986904