With just one week until Capital Grants 2026 opens on Thursday 30 July, farmers and landowners are being urged to prepare their applications now.
Defra has confirmed £225 million of funding for this year's scheme, which is a 50% increase on the £150 million available in 2025. While this is welcome news, demand is expected to be exceptionally high, particularly against the backdrop of disappointing harvest yields and fewer alternative funding opportunities.
At Cheffins, we expect applications to significantly exceed previous years, meaning those who are prepared and ready to apply early are likely to be in the strongest position.
What funding is available?
The scheme offers grants across six key categories:
Funding limits apply to each category, with:
Up to £35,000 available for boundaries, trees and orchards.
Up to £25,000 available for air quality, water quality and flood management.
Applicants can include items from multiple categories within a single application, provided they stay within the funding limits for each group.
This year, there are 80 eligible capital items, covering everything from fruit tree planting and stone gate posts to a wide range of infrastructure and environmental improvements.
Timing is everything
One of the most important rules to remember is that Capital Grants cannot be used to fund work that has already started or materials that have already been purchased.
It's essential to wait until your Capital Grant agreement has been issued before beginning any work.
The good news is that once an agreement is in place, applicants have up to three years to complete the works. This flexibility allows projects to be phased around cashflow, with interim claims submitted as work progresses.
Making Capital Grants work alongside SFI
Capital Grants can also complement existing environmental agreements.
For example, farmers already operating SFI CSAM3 Herbal Leys may be able to secure funding for stock fencing and gates, helping to put the necessary grazing infrastructure in place while supporting wider environmental objectives.
Katie Hilton, Director at Cheffins and grant funding specialist says:
“Defra has confirmed it will publish updates when 25%, 50% and 75% of the available funding has been allocated. Bearing in mind the current landscape within the industry, I expect applications to be extra competitive this year and waiting could mean missing out. One of the most important things to remember when making an application is ensuring that it is complete. Missing out supporting evidence or incomplete information can delay processing with Defra which will reduce the chances of securing the funding while it remains available. With the application window opening in just a week's time, if you haven’t already, now is the time to review your plans, gather the required documentation and ensure you're ready to submit as soon as the scheme goes live.”
For support with making an application, contact Cheffins on 01223 213777, [email protected] (Cambridge) or 01353 662405 or [email protected] (Ely)
Or to find out more about Cheffins Rural support, please click here