Farmers and agri-businesses can once again apply for capital funding from the government for eligible land and environmental management projects.
The Capital Grants 2025 application window opened at the start of July, offering three-year funding agreements for projects in six categories:
- Boundaries, trees and orchards
- Water quality
- Air quality
- Natural flood management
- Assessments (for wildfire prevention and woodland condition)
- A new category called ‘Improvements’, which makes grants available to fund educational access visits
The scheme works by allocating fixed funding packages to a range of approved ‘capital items’, or specific projects or investments relating to environmental land management. This year’s scheme has 82 eligible capital items.
Four of the project categories have funding caps – a maximum of £25,000 each from all items that fall under air quality, water quality and natural flood management, and £35,000 for boundaries, trees and orchards. There is no cap on applications under the assessments and improvements categories.
Applications are made via the Rural Payments Agency (RPA) and are allocated on a first come, first served basis.
Who Can Apply and What Land Qualifies?
Applications are open to owner-occupiers, landlords, tenants and licensors who have management control of eligible landholdings.. Management control must be held for five years from the start date of your agreement, unless you are a tenant, in which case the tenancy agreement granting you management control must extend for at least three years. If these conditions aren’t met, tenants may still apply with their landlord acting as a counter-signatory. Only one application is allowed per landholding, as determined by a single business identifier (SBI).
The scheme is only available for land holdings in England. Common and shared-grazing land, developed land and land that already falls under certain funding arrangements is not eligible. Public-sector land owned by the Crown or non-departmental public bodies is also excluded from the scheme. However, land owned by local authorities, national parks, public corporations, parish councils, and former college farms may qualify, so long as the funded capital works are not already part of statutory obligations.
The grants form a standalone funding scheme, but may be used in conjunction with funding from other schemes (including the Sustainable Farming Incentive, Countryside Stewardship and Environmental Stewardship) so long as the capital applications do not duplicate funding for the same purposes.
How to Apply
- Register or update your details in the Rural Payments service.
- Go to the Capital Grants portal via the Countryside Stewardship screen.
- Check land parcels included in the application are registered with the RPA and up to date. Guidance on registering land via the RPA mapping service can be found here.
- Prepare supporting documents and submit by email or post. Required documents include your application map, a land ownership and control form, and any others specific to your grant application. Extra documentation is detailed in the Capital Grant Finder.
Guidance on completing your application can be found here
Get started now to secure your funding
Early applications are encouraged as the scheme will close if and when all funding earmarked for it is allocated. To find out more, or to get help identifying opportunities and putting your application together, get in touch with us and we will connect you to an experienced rural business advisor in your area.
