Navigating DEFRA's Latest Funding Announcements: A Guide for Farmers

As land agents committed to supporting our agricultural community, it's essential to keep abreast of the latest developments from the Department for Environment, Food & Rural Affairs (DEFRA). Recent announcements have introduced changes to various funding schemes, including the Environmental Land Management (ELM) Capital Grant Scheme, Higher Level Stewardship (HLS) agreements, and the Farming Equipment and Technology Fund (FETF). Here's a concise overview to help you navigate these updates.

ELM Capital Grant Scheme

The ELM Capital Grant Scheme is set to reopen in the summer, with a budget allocation of approximately £45 million for 2025/26. Over 4,000 pending applications, which had been placed on hold following the scheme's sudden closure in autumn 2024, will now be processed, with agreements valued at a total of £120 million over their duration.

When the scheme resumes, funding caps will be in place:

• Up to £25,000 for projects improving water and air quality, as well as natural flood management.
• Up to £35,000 for tree planting and boundary enhancements.

Payment Increases for HLS Agreement Holders

This is positive news for those with long-term HLS agreements. Historically, an HLS agreement has restricted the ability to apply for the new Sustainable Farming Incentive (SFI), and its payment rates have been considerably lower than those offered by Higher Tier or SFI agreements. DEFRA will be contacting all HLS agreement holders by the end of April with details regarding the revised payment rates.

Additionally, DEFRA is advancing plans to introduce a new Countryside Stewardship Higher Tier (CSHT), which will initially be accessible by invitation only.

£110 Million Investment in Equipment and Technology Grants

The government has committed £110 million towards modernising farm operations, including:

• A single round of the Farming Equipment and Technology Fund (FETF) in the spring, with grants ranging from £1,000 to £25,000.
• Over £42.5 million in new Farming Innovation Programme (FIP) grants, including competitions aimed at promoting precision breeding and supporting the transition to net zero.
• The launch of the ADOPT (Accelerating Development of Practices and Technologies) fund, offering £20 million for farmer-led research trials on emerging technologies.

Additional Announcements

• A five-year extension to the seasonal worker visa route, though it is not seen as a long-term solution, with visa numbers expected to decrease over time. Businesses are encouraged to adapt accordingly.
• Continued funding for the Farming in Protected Landscapes (FiPL) initiative, allowing farmers in designated areas to undertake tailored conservation projects.
• Ongoing support through the Animal Health and Welfare Pathway, which funds veterinary visits for eligible livestock farmers.
• DEFRA remains committed to developing a 25-year ‘farming roadmap’ aimed at enhancing long-term profitability and sustainability within the sector.

Recommendations

To navigate these changes effectively:

• Stay Informed: Regularly consult DEFRA's official channels, including the DEFRA Farming Blog and GOV.UK, for the latest updates on funding schemes and application windows.
• Plan Ahead: Anticipate potential funding opportunities by preparing necessary documentation and project plans in advance, ensuring readiness when application windows open.
• Seek Professional Advice: Engage with agricultural consultants or land agents to gain tailored advice and insights into how these changes may specifically affect your operations.

By proactively managing these developments, farmers can continue to align their practices with both environmental goals and business sustainability.

For more information on Shouler & Son’s rural services and professional advice on eligibility for this or any of the new Defra funding schemes under ELMS, contact Angela Wood, email [email protected], tel 01664 560181 or see https://www.shoulers.co.uk/pages/rural-services#/.