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Up to £150 million for farmers - Capital Grant Applications reopened with new options

Fri 04 Jul 2025

Great news for Lincolnshire’s farming community as the latest round of Capital Grants have officially reopened for applications with £150 million being made available to farming businesses.

Secretary of State Steve Reed announced grants geared towards long-term benefits with focus on the following changes:

  • Environmental Impact: Grants are available for planting hedgerows to boost biodiversity, improving water and air quality through better infrastructure, restoring vital habitats, and implementing natural flood management measures. All designed to reduce pollution and make the environment more resilient. 
     
  • Flexibility and Integration: Grants are available for standalone improvements or to complement existing agreements like the Sustainable Farming Incentive (SFI), Countryside Stewardship (CS), or Higher Level Stewardship (HLS) to fit into your business plans.
     
  • Funding Limits: Some limits have been introduced for specific categories (e.g., water quality, air quality and natural flood management at £25,000, and boundaries, trees, and orchards at £35,000).
This new round of funding follows the sudden temporary closure in November 2024 of the Capital Grant for new applications due to the exceptionally high demand for some items.

Capital Grants Summary

In total there are 78 items available through the Capital Grant offer, in 6 groups:  
  • Air quality
  • Assessments 
  • Boundaries, trees and orchards 
  • Natural flood management
  • Improvements 
  • Water quality 
Some Key Options available:
  • Livestock Troughs (LV7)
  • Livestock Handling Facilities (LV2)
  • Permanent Electric Fencing (FG3)
  • Sheep Netting (FG2)
  • (Stock) Fencing (FG1)
  • Gateway Resurfacing (RP1) & Relocation (RP2)
  • Concrete Yard Renewal (RP15)
  • Planting New Hedges (BN11)
  • Rainwater Goods (RP16)
  • Installation of Piped Culverts (RP6)
  • Livestock & Machinery Hardcore Tracks (RP4)
  • Equipment to Disrupt Tramlines in Arable Areas
  • Tree Removal (SB3)
  • Ditch Restoration (WN3) & Creation (WN4)
Each application can include items from these groups up to the relevant limit, as well as additional items from the assessments and improvements groups. 

Applications are accepted at any time during the year. However, the government will only accept one successful application per Single Business Identifier (SBI) per calendar year. 

Some New Options Include:

Assess Woodland Condition (FY7)
Payments: 
  • £13.63 per hectare for the first 30 hectares
  • £4.09 per hectare for any area over 30 hectares 
  • Minimum payment: £300 
Create a Wildfire Checklist (WF1)
Payments: 
  • £327.12 per farm 
Educational Access Visits (VED1)
Payments: 
  • £363 per visit
  • Up to 25 visits per calendar year

Next steps for Applications 

Demand during the last application window was unprecedented, so please get in touch if you wish to explore these grants for your farm. The government has said they will carefully monitor applications and close applications once again when this round is allocated.

The government also plans to add 30 new items to CS Higher Tier capital grants. Funding is not guaranteed even if an application has been submitted and is eligible so, please act quickly. 

When this round concludes, further improvements will be made to the offer and a new round of funding for farmers is not expected until 2026.

If you want to discuss any of the Capital Grants available now and those that might be forthcoming please give me a call on 07930 592030.

Abi Saunders
Agri Business Advisor
[email protected]