Applications are now open for the Capital Grants Offer, with £150 million in funding available to support farmers, land managers, and rural businesses in delivering practical environmental improvements across England.
The offer has reopened to new applicants following a temporary closure in November 2024, which was due to exceptionally high demand for certain items.
Grant changes are said to make it easier for more farm businesses to access funding, with a fairer and more inclusive approach. This forms part of the government’s ‘New Deal for Farmers’, aimed at supporting growth and long-term success.
The Capital Grants Offer is part of the wider Capital Grants Scheme, alongside five other standalone offers covering woodland health, management, protection, and infrastructure.
Clarifying environmental improvements
What constitutes a ‘practical environmental improvement’? The Department for Environment, Food & Rural Affairs (Defra) identifies these examples:
- Planting hedgerows;
- Managing boundaries;
- Improving water and air quality;
- Restoring habitats; and
- Introducing natural flood management measures.
Chosen for their lasting value, these improvements reduce pollution and strengthen environmental resilience.
Who can apply
The Capital Grants Offer is aimed at people who care for the land – helping them protect nature, look after resources, and make lasting improvements to the countryside. It is open to land managers who are one of the following:
- An owner occupier;
- A Tenant;
- A landlord; or
- A licensor if they have management control of the land and activities needed to meet the obligations of the grant for the full duration of the agreement.
To be eligible for Capital Grants, land parcels must be entirely within England.
Capital Grants may fund standalone projects or enhance existing Sustainable Farming Incentive (SFI), Countryside Stewardship (CS), or Higher Level Stewardship (HLS) agreements.
Capital items
Capital Grants are 3-year agreements to achieve specific environmental benefits across 78 items, within 6 groups. You can select multiple items from the 6 groups.
- Air quality;
- Assessments;
- Boundaries, tress and orchards;
- Natural flood management;
- Improvements; and
- Water quality.
This reopened offer also includes 4 new capital items:
- Assess woodland condition;
- Create a wildfire checklist;
- Repair stone walls; and
- Host educational access visits.
Further capital items will also be added later this year, including: accreditation for educational access visits, installing and maintaining signage, using tree surgery to hinge a tree to a water course, and creating or restoring ponds. With this in mind, it is advisable to plan ahead and consider all available options before making a submission.
You must check each capital item you are applying for to see if any consents are needed.
It should be noted that funding limits have been introduced as follows:
- £25,000 for: water quality, air quality, and natural flood management; and
- £35,000 for: boundaries, trees and orchards.
More detail and guidance on all capital items can be found on the Grant Finder tool.
Applications
You should apply for Capital Grants online in the Rural Payments service, using the Countryside Stewardship screen.
After submitting your online application, the Rural Payments Agency (RPA) must receive your supporting documents and any evidence needed within 10 days of the ‘Submit Date’ in the initial Countryside Stewardship applications screen. Examples of supporting documents include:
- Applications maps:
- A land ownership control form (if required); and
- Catchment Sensitive Farming support (if required).
Successful applicants will receive an offer letter from RPA. To accept, sign and return the declaration by post within 20 working days. Funding is not guaranteed, even if an application has been submitted and is eligible.
Applications are open year-round, but only one successful application per SBI is allowed each calendar year. For capital expenditure over £50,000, a statement from a registered accountant must be included.
The Capital Grants Offer will close again once current funding is fully allocated. The scheme will then be reviewed, with a new application window anticipated in 2026.
