These competitive productivity grants are split into small grants (Farming Equipment and Technology Fund) and large grants (Farming Transformation Fund).
So far these schemes have been very popular and have in the main been oversubscribed, with farmers who have previously not engaged with these types of grants engaging for the first time. This has meant that lower scoring applications, or weaker projects, have not been taken forward by the RPA to either allow a claim or a full application.
The NFU continues to work closely with Defra and the RPA on the development of these schemes.
Farming Equipment and Technology Fund (FETF)
Farming Equipment and Technology Fund items will help improve:
- farm productivity
- the environment
- animal health and welfare
- management of slurry.
2023 offer:
Scheme information published
7 February 2023
Productivity and Slurry deadlines:
- Applications have now closed.
Animal Health and Welfare deadlines:
- Application window opened: 23 March 2023.
- Application window closed: Midday 15 June 2023.
- Claim deadline: 5 December 2023.
What did it cover?
There are 2 themes to the grant, each with an online application portal and different timelines:
- Productivity and Slurry – 91 items
- Animal Health and Welfare – 112 items
Applicants were able to apply to either theme or both, for items that best suited their business. The FETF 2023 grant offer is competitive, and therefore not everyone who applied was successful.
The 2023 offer was open to farmers, contractors, and foresters in England. Grants for items on the Animal Health and Welfare list are available to farmers or contractors in the following sectors:
- beef cattle
- dairy cattle
- sheep
- pigs
- laying hens
- broilers
There were some livestock productivity items in the Productivity and Slurry list of eligible items - this list also has categories for items under horticulture, arable, slurry, resource management and general items.
The FETF 2023 grants are for a minimum of £1,000 and a maximum of £25,000 per theme. This means the maximum grant you can receive for Productivity and Slurry items is £25,000 and the maximum grant you can receive for Animal Health and Welfare items is £25,000.
If you were successful in receiving funding in Round 1 you can still apply for up to £25,000 per theme. The minimum and maximum grant levels apply to 2023 only. In future, there may be a cap added for the total grant that can be claimed over more than one year.
The amount listed against each item in Annex 3 and Annex 4 of the RPA guidance is the actual grant amount the RPA will pay you and is a contribution towards the total cost of the item. It is your responsibility to fund the remaining cost of an item. Items must be paid for in full before claiming your grant payment.
You can find more information on our Farming Equipment and Technology Fund page. This includes information for those that have been successful with their initial application and making a claim.
Post application developments
The decisions for the Productivity and Slurry theme were communicated via email on 22 and 23 May 2023.
Defra announced on 8 June 2023 that the original budget for the Productivity and Slurry theme has been increased from £17m to £31m as a result of high demand.
Whilst the budget will not cover all applications in the scheme, the increased funding goes a long way to helping as many as possible, and has resulted in around 3,000 farmers have been received support by the end of May 2023.
Decisions for the Animal Health and Welfare pathway were communicated from 17 July 2023 onwards.
Defra announced on 26 July 2023 that more than £19 million in grant funding was awarded to farmers to purchase livestock equipment under the Animal Health and Welfare theme with more than 3,000 pig, poultry, sheep and cattle farmers having successfully applied to the first round.
Farming Transformation Fund – Calf Housing for Health and Welfare grant
Online checker deadlines:
- Online checker opened: 7 September 2023
- Online checker closes: 30 November 2023
Defra has published guidance on a new £10 million Infrastructure grant to fund cattle housing for farmers. The RPA online checker is now open for those interested in applying; the process should help determine whether you are eligible and whether your proposal meets the aims of the scheme. It is therefore crucial to read the current guidance on the scheme to ensure your proposal has the best chance of succeeding.
This new grant can contribute up to 40% of the cost of cattle housing. Aimed at the dairy and beef sectors, the grant aims to improve the health and welfare of calves (up to 6 months old) by providing a good ambient environment as well as facilitating social contact through group or paired housing.
The grant can contribute to calf housing which:
- provides good ventilation and protects calves from draughts
- protects calves from getting too hot or too cold
- has solid floors with adequate drainage and straw bedding
- houses calves in pairs or groups
- provides calf enrichment
- meets environmental objectives, such as installation of solar panels.
This will be a competitive grant awarded by the RPA. It will focus on the projects which have the largest beneficial impact on animal health and welfare, however, it will also be considering innovation and productivity, as well as environmental incomes.
The grant will enable farmers in England to access funding, ranging from £15,000 to £500,000, to co-finance cattle infrastructure projects, prioritising new and upgraded calf housing which will improve conditions for livestock and help to boost farmers’ productivity and profitability.
Defra will be extending this infrastructure grant to other livestock sectors, with forthcoming funding available for pig and poultry farmers.
You can find out more by visiting: Farming Transformation Fund – Calf Housing for Health and Welfare grant | NFUonline
NFU Energy Help
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Farming Transformation Fund – Slurry Infrastructure grant
Round 2
Scheme information published
12 October 2023
Initial outline application period to open (Stage 1)
November 2023 (subsequent deadline to be confirmed)
Deadline for location and design assessment (Stage 2)
30 September 2024
Deadline for full application (Stage 3)
11.59pm 27 June 2025
The second round of the Slurry Infrastructure grant will open for initial outline applications shortly, with a third round expected to be launched in 2024.
A number of important changes have been made for round 2:
- Pig farmers will be able to apply for a grant to cover up to 8 months’ worth of storage rather than 6 months’ worth, while cattle farmers will again be able to apply for 6 months’ worth.
- All farmers can apply for a grant towards the cost of a slurry separator as part of their wider application, though the resulting reduction in slurry cannot be used to justify a lower storage requirement.
- Those with stores which are already fit-for-purpose can apply for a grant towards the cost of an impermeable cover only, but the minimum grant threshold of £25,000 still applies.
- In-situ cast concrete stores will now be available as an alternative to circular and panels stores, lagoons, and large volume supported bags, allowing stores to be built more easily in hard-to-access locations.
- There will be an option for landlords to underwrite grant funding agreements, which would see them take over agreements if the tenant does not complete the project.
Defra appreciates that some farmers who applied for round 1 may want to amend their application to take advantage of the revised offer. The RPA is contacting round 1 applicants with a time-limited opportunity to update their application if they want to include these changes in their project, without having to reapply.
If you were unsuccessful with round 1 you need to reapply for round 2. You will also need to use the latest version of the AHDB Slurry Wizard to ascertain your current slurry production and storage.
Defra does not currently plan to make any further changes to the offer for round 3.
For more information on round 2, visit: Slurry Infrastructure grant – round 2.
Round 1
Scheme information published
23 November 2022
Initial outline application period closed
31 January 2023
Decisions on initial outline applications
Decisions communicated by late March
Full application deadline for successful applicants
28 June 2024
What did it cover?
The Slurry Infrastructure grant helps dairy, beef, pig farmers in England invest in future-proofed slurry infrastructure and nutrient management systems with an aim to help reducing water and air pollution risk from slurry.
These first-year grants were aimed at covered slurry store construction projects, to enable farmers to get to six months storage capacity based on existing livestock numbers (meaning the typical number of animals you kept on the farm over the last year).
Defra is grant-funding a range of storage types and situations which farmers can choose from a list which needs to meet regulatory and building standards. It will help replace, build new or expand existing slurry stores to provide six months' storage.
Grant-funded projects will need to maintain six months' storage capacity for all animals on the holding for the duration of the grant funding agreement, irrespective of future livestock numbers. This means you’ll need to make appropriate upgrades to your storage and slurry management if you increase your herd size in the future.
What has happened since 31 January 2023?
It is a competitive fund. The RPA prioritised projects which had the greatest environmental benefit, based on areas that need urgent action to:
- reduce nutrient pollution from agriculture
- restore natural habitats
What has happened since the end of March 2023?
Defra started contacting successful applicants via letter to inform them that they will now need to prepare a full application for Defra to consider. These include all eligible applicants from the priority areas outlined by Defra, as well as those with projects scoring highly in both water and air quality improvements.
For those who have been unsuccessful in this round or did not apply, Defra has announced plans for two further rounds in 2023 and 2024. The NFU is involved in the co-design process for these two rounds to ensure the scheme works for those unsuccessful from Round 1 as well as those that have not applied so far.
Successful applicants will now need to go through EA’s location and design check and secure planning permission for their project as well as analysing their financial viability, if they have not already done so. The deadline for the full application, including these two elements, will be 28 June 2024.
Defra has also changed the way it manages the standard cost funding for these grants. If your total amount for the project is less than what was calculated initially, then Defra will maintain their matched funding of 50%, of the actual total cost.
You can find out more by visiting: Farming Transformation Fund – Slurry Infrastructure grant | NFUonline
Farming Transformation Fund (FTF) for water management grant: Rounds 1 and 2
Round 2
Initial outline application window opened
19 April 2023
Initial outline application window closed
23:59 12 July 2023
Full applications deadline for successful applicants
23:59 on 31 October 2024
This scheme has now closed to new applications, but claims in the system are working their way through the RPA process.
This round of the grant scheme was open to arable and horticultural businesses which were either already growing, or intending to grow, either irrigated food crops, ornamentals or forestry nurseries.
Applicants had until 12 July 2023 to submit an initial application. Upon assessment by the RPA, those who are selected to progress will be required to submit a complete a full application by 31 October 2024. You must include abstraction licences and planning permission confirmation in your application for Round 2.
The grant can go toward capital items to improve on farm productivity by mitigating water loss and securing water for irrigation use. These can include:
- Modifying existing water application equipment to more efficient models (moving from rain guns to trickle or boom application).
- Securing water access with a reduced environmental impact (such as by reservoir construction, rainfall harvesting or winter abstraction rather than summer abstraction).
- Improving business resilience and prosperity (for example, using new irrigation systems and newly irrigated areas to increase productivity or introduce high value crops and/or moving away from fossil fuel powered equipment)
- Encouraging collaboration for water storage and irrigation of crops (for example supplying water to neighbouring farmers).
For a full list of available equipment, visit: GOV.UK | About the Water Management Grant Round 2
The grant range will be between £35,000 and £500,000 per applicant business and will cover up to 40% of the cost of eligible items.
Decisions were made in August 2023 on the initial applications received by the RPA, successful initial applicant has have until 23:59 on 31 October 2024 to put in their full application.
You can find out more by visiting our guide to the Farming Transformation Fund – Water Management Grant page.
Round 1
Launched
16 November 2021
Initial outline application window closed
12 January 2022
Full applications deadline for successful applicants
- Tranche 1: 30 June 2022 for those that did not request an extension with planning and abstraction licences in place by 31 December 2022.
- Tranche 1: 30 September 2022 for those that did request an extension with planning and abstraction licences in place by 31 March 2023, and latterly 31 May 2023 for some cases.
- Tranche 2: 30 November 2022 with planning and abstraction licences in place by 31 May 2023.
What did it cover?
The competitive FTF for water management grant offered grants to improve farm productivity through more efficient use of water for irrigation / secure water supplies for crop irrigation by the construction of on-farm reservoirs and related equipment.
Grant contribution range from £35,000 to £500,000 with a 40% intervention rate.
What has happened since 12 January 2022?
As a reminder, there was a two-stage application process with an online eligibility and desirability scoring checker that assessed initial applications. This closed in January 2022, though supporting permissions and licences could be submitted where agreed up to 31 May 2023.
The RPA has since made three decisions on submitted initial applications:
- Strong scoring projects have been invited to progress with a full application.
- Some lower scoring projects were initially put on hold but have since been invited to put in a full application, as set out above in the form of Tranche 2.
- The weakest projects have been turned down.
After the deadlines set out above, the RPA will assess the full applications and decide on which will be offered grant funding. The decisions are said to be made within 60 days of this deadline.
Critical is the need to have planning permission/abstraction licences in place. If there are delays getting planning permission or abstraction licenses, speak to the RPA about whether an extension is possible.
You can find out more by visiting our guide to the Farming Transformation Fund – Water Management Grant page.
Farming Transformation Fund Improving Farm Productivity grant Round 1
Scheme information published
Mid December 2021
Initial outline application window closed
16 March 2022
Full application deadline for successful applicants
14 September 2022.
The RPA allowed a second tranche of Improving Farm Productivity large projects to progress to full application stage. The deadline for these applicants to submit their full application was 31 January 2023.
This scheme has now closed to new applications, but claims in the system are working their way through the RPA process.
What did it cover?
The competitive Improving Farm Productivity grant was to improve farm productivity through robotic (for example automated weeding / voluntary milking systems / feeding systems) or automation (for example advanced ventilation systems) and also mild slurry acidification treatment support.
Grant contributions range from £35,000 to £500,000 with a 40% intervention rate.
What has happened since 16 March 2022?
As a reminder, there was a two-stage application process with an online eligibility and desirability scoring checker that assessed initial applications. This closed in mid-March 2022.
The RPA has assessed the initial applications received and made the following decisions:
- the strongest scoring projects have been invited to progress with a full application in two tranches as set out above.
- the weakest projects will be turned down.
Now that we are past the deadlines, the RPA is assessing the full applications and deciding on which will be offered grant funding. The decisions are said to be made within 60 days of this deadline.
Critically, planning permission needed to be in place by 31 December 2022 for the first tranche, and by 31 May 2023 for the second tranche.
Find out more by visiting our Farming Transformation Fund Improving Farm Productivity page.
Farming Transformation Fund Adding Value grant
Scheme information published
24 May 2022
Initial outline application closed
21 July 2022
Full application deadline for successful applicants
31 January 2024
This scheme has now closed to new applications, but claims in the system are working their way through the RPA process.
What did it cover?
The Adding Value grant scheme was set up to award capital grants of between £25,000 and £300,000 to farmers and growers to support their work processing, diversifying, and adding value to their agricultural and horticultural products.
It is a competitive fund. The RPA will award funding to the strongest applications.
You can find out more by visiting our Farming Transformation Fund – Adding Value grant page.
What has happened since 21 July 2022?
As a reminder, there was a two-stage application process with an online eligibility and desirability scoring checker that assessed initial applications. This closed on 21 July 2022.
The RPA has assessed the initial applications received. At this point we expect that:
- the strongest scoring projects will have been invited to progress with a full application
- lower scoring projects may be put on hold in case funds become available later if projects initially asked to progress drop out of the process
- the weakest projects will be turned down.
On 17 August 2022, the RPA announced that applicants who have been invited to submit a full application for this grant could now go ahead with their submission. If you have been invited to submit a full application, the deadline for submitting your full application form and supporting evidence is 11.59pm on 31 January 2024.
The RPA will assess the full applications and decide which will be offered grant funding as they are received. The decisions are said to be made within 60 days of this deadline.
The RPA cannot assess full applications or commit funds to projects that are waiting on planning permission to proceed. In this instance, you will need to send a copy of the planning permission approval together with your full application submission.
You can find out more by visiting our Farming Transformation Fund – Adding Value grant page.
What else is in the pipeline?
Below you can find information on what we expect to see in the coming months, the picture is always evolving as well as what is covered under each funding offer, it is therefore key to keep an eye on the latest news from the NFU, Defra and the RPA.
Large grants
Look out for:
Farming Transformation Fund – Improving Farm Productivity Round 2
This round is expected to open in Winter 2023.
Defra recently announced a revised package for Round 2 of this grant, which includes £15 million to install rooftop solar related equipment (which alongside a further £15 million to invest in automation and robotics), will help them reduce fossil fuel use, improve their energy resilience, and accelerate progress towards net zero.
Capital grants will be made available at an intervention rate of 25%. Defra are now in the process of agreeing more of the finer details.
Small grants
Farming Equipment and Technology Fund – Productivity and Slurry – 2024 Offer
This is the first of two further rounds, and is expected to open in early 2024.
Farming Equipment and Technology Fund – Animal Health and Welfare – 2024 Offer
This is expected to open in early 2024.
The RPA and Defra are working on the 2024 offers at this time, details will be released when they are ready, do not assume the 2023 offer will roll over unchanged for these 2024 offers.
Other funding
Small Abattoir Fund
This is expected to open in late 2023.
This will be open to red meat and poultry businesses with an annual throughput of up to 10,000 livestock units including beef, pork, and lamb, and/or 500,000 birds per year.
There is £4m funding for this fund. The funding is designed to upgrade existing smaller abattoirs, not necessarily to establish new ones and not directly be connected to NFU members, unless they operate one.
