Capital Grants Update

A budget of £5 billion has been allocated for farming and the environment over the next 2 years. Defra has commented that the budget will be managed carefully and spending focussed on the areas where it can deliver the most benefit for food security and nature.

Statistics have recently been published showing that the demand for stand-alone capital grants has been exceptionally high, applications from May to November this year were worth 42% more than all applications received last financial year; the RPA are forecast to spend 49% more on capital grants this year than was paid out in 2023/24 and 125% more than in 2022/23.

Therefore, to ensure the funding can be prioritised to help build a sustainable farming sector, Defra has announced that grants will be simplified and rationalised as follows:

• The main part of the Capital Grant offer will remain closed until early 2025.
• Existing applications are for now on hold, and applicants will be contacted in early 2025 with next steps.
• Payments under existing agreements will continue as usual following the current process.
• The Woodland Tree Health grant, Capital Grant Plans and Management Plans, Protection and Infrastructure Grants and Higher Tier Capital Grants remain open.

For an update on capital grant items, please visit (GOV.UK).

The Sustainable Farming Incentive (SFI) is open, 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.

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 to achieve both environmental and productivity goals.

Reductions in Basic and Delinked Payments 2021-2025

With the maximum payment to be made in 2025 to be £7,200, there is no indication of what, if anything, might be paid in 2026 or 2027, originally intended to be the last year of payment.

To discuss these changes and how they may affect your business/current applications, please contact your local Berrys advisor:

William Tongue (Kettering) on 07866 693899 email william.tongue@berrys.uk.com

Guy Banham (Kettering) on 07971 917984 email guy.banham@berrys.uk.com

Tom Harris (Towcester) on 07747 567910 email tom.harris@berrys.uk.com

John Thame (Towcester) 07887 871038 email john.thame@berrys.uk.com

Mark Lord (Shrewsbury) on 07384 250136 email mark.lord@berrys.uk.com

Maisie Evans (Shrewsbury) on 07971 917984 email maisie.evans@berrys.uk.com

Vicky Price (Hereford) on 07789 986904 email vicky.price@berrys.uk.com