Capital Grants provide standalone capital item agreements that deliver environment outcomes within four groups; boundaries, trees and orchards; water quality; air quality; and natural flood management.
They are vital tools for supporting farmers with the agricultural transition.
Defra has said some capital grants will temporarily close – a total of 76 grant items.
The department released a new statement giving an update on capital grants. A Defra spokesperson said: “As a result of unprecedented demand some of the capital grants offer for farmers will temporarily close to new applications.
“Agreements that have already been signed will be met, with further funding prioritised to help build a sustainable farming sector.”
Closure is a ‘real blow to members’
Responding to the news, NFU Deputy President David Exwood said: “The sudden closure of many of the capital grant applications will come as a real blow to members, many of whom are relying on these grants to achieve their environmental ambitions.
“The messaging of this is confusing – farmers and growers are being asked to adopt measures to improve the environment but have been left in the lurch without access to the key grant schemes which will enable them to do this.
“With applications timed specifically to fit in with the farming year and enterprise activities, and no confirmation that all applications already in the system will progress, it’s incredibly frustrating and unhelpful that members will receive no further information until next year.
“The whole agricultural transition has lurched from one crisis to another. This is only the latest scenario where Defra has failed to provide clarity and certainty. Only a month ago we were shocked to hear plans to accelerate the phaseout of direct payments, and this sudden decision has once again left farmers wondering how on earth they can plan for the future with these ever moving goalposts.
“We are holding urgent meetings with the government to try and get some much-needed clarity for members.”
What if I've already applied?
For those who have applied already, Defra has said if an application relates to the grants that are temporarily withdrawn, it will be on hold for now.
You will be contacted in early 2025 with information about what happens next.
The RPA will continue to accept new applications in this period for:
- Woodland Tree Health grants, which help protect tree health against devastating plant pests and diseases.
- Capital grant plans and management plans to help support the development of new CS Higher Tier agreements.
- Protection and Infrastructure grants and Higher Tier capital grants, help support delivery of high value environmental benefits, such as re-wetting peat.
The NFU will keep members informed of any updates and developments on the closure.
For more information, visit: GOV.UK | An update on capital grants.