Spending review update - over £2.7 billion to be invested in sustainable farming and nature recovery
Tue 17 Jun 2025
Last week the spending review was announced which secured more than £2.7 billion to be invested in sustainable farming and nature recovery each year from 2026/27 to 2028/29.
This announcement means the government will continue to invest in sustainable food production through:
Following the closure of SFI and Countryside Stewardship for new applications, the government have announced that details will be released later this summer for the reformed scheme which will be targeted to more effectively achieve the priorities on food, farming and nature. The aim is to make the reformed scheme less complex.
£400 million a year will be invested into the Nature for Climate Fund and Biodiversity Targets Programme, allowing farmers access to financial support for tree planting and peatland management.
HLS Payments
The government has announced that the HLS payment rates are going to be increased. This will see an average increase of just above 30%. Find full details here: Higher Level Stewardship: increased payment rates now available – Farming
SFI
If your SFI 2024 application is eligible you should have been contacted by the RPA to offer you an opportunity for an agreement subject to the following restrictions:
Delinked payments
For delinked payments in 2026 and 2027:
Additional grants available in Lincolnshire
Private Funding
There is access to financial support for biodiversity and carbon markets through certain supply chains, grain buyers, carbon markets and biodiversity net gain deals. Some financial farm support from the supply chain to promote certain farming practices may be simple to access and initially only require a farm carbon footprint being completed.
Although there is uncertainty around the future of stewardship grants, now is a good time to consider a carbon and biodiversity baseline and strategy, allowing you to capture and calculate your environmental data, potentially opening opportunities to access public and private markets. I can support you with this.
If you want to discuss any of the funding streams available and how they can complement your business planning please give me a call on 07930 592030.
Abi Saunders
Agri Business Advisor
[email protected]
This announcement means the government will continue to invest in sustainable food production through:
- The Sustainable Farming Incentive (SFI)
- Countryside Stewardship Higher Tier (CSHT)
- Landscape Recovery
- Capital Grants
Following the closure of SFI and Countryside Stewardship for new applications, the government have announced that details will be released later this summer for the reformed scheme which will be targeted to more effectively achieve the priorities on food, farming and nature. The aim is to make the reformed scheme less complex.
£400 million a year will be invested into the Nature for Climate Fund and Biodiversity Targets Programme, allowing farmers access to financial support for tree planting and peatland management.
HLS Payments
The government has announced that the HLS payment rates are going to be increased. This will see an average increase of just above 30%. Find full details here: Higher Level Stewardship: increased payment rates now available – Farming
SFI
If your SFI 2024 application is eligible you should have been contacted by the RPA to offer you an opportunity for an agreement subject to the following restrictions:
- your agreement will be offered up to a maximum value of £9,300 per year for the duration of the agreement
- you will not be able to add more land to any ‘rotational’ SFI actions after Year 1 of this agreement
Delinked payments
For delinked payments in 2026 and 2027:
- 98% reduction to the first £30,000 of any delinked payment
- Any amount above £30,000 will be reduced by 100%
- Reductions will be calculated using the farmer’s reference amount (not the value of their 2025 payment).
Additional grants available in Lincolnshire
- Farming in the Protected Landscape (FiPL) is open until March 2026 for those who farm in the Lincolnshire Wolds National Landscape (AONB). The programme will pay for projects that provide value for money and result in at least one climate, nature, people or place outcome.
- Anglian Water Farming Innovation Grant will support farmers to improve water quality in their catchments, offering flexible funding of up to £7,500/holding. This is available until 30th July 2025.
- Farming Equipment and Technology Fund 2025 (FETF) closes at midday 10th July, contact me for help.
Private Funding
There is access to financial support for biodiversity and carbon markets through certain supply chains, grain buyers, carbon markets and biodiversity net gain deals. Some financial farm support from the supply chain to promote certain farming practices may be simple to access and initially only require a farm carbon footprint being completed.
Although there is uncertainty around the future of stewardship grants, now is a good time to consider a carbon and biodiversity baseline and strategy, allowing you to capture and calculate your environmental data, potentially opening opportunities to access public and private markets. I can support you with this.
If you want to discuss any of the funding streams available and how they can complement your business planning please give me a call on 07930 592030.
Abi Saunders
Agri Business Advisor
[email protected]