Farmers and land managers are being encouraged to act now following the reopening of the Capital Grants scheme, whilst also preparing for Round 2 of Sustainable Farming Incentive (SFI) which is expected to open in September. Strong demand for funding is anticipated despite the increased budget.

Capital Grants provide one-off payments for projects that deliver environmental benefits and practical farm improvements. Funding is available for a range of measures, including hedgerow creation and restoration, water quality enhancements, natural flood management works and infrastructure projects that improve environmental performance.

Applicants are advised to identify priority projects and gather all supporting information. Previous funding rounds saw delays and rejected claims caused by incomplete applications and missing evidence, underlining the value of early preparation.

Farmers should also review existing stewardship agreements, check for any conflicts with previous capital claims, and ensure land and project information is accurate and up to date. Any specialist advice, permissions or approvals required should be secured in advance to avoid delays once applications open.

The reopening of Capital Grants also provides an opportunity for businesses to review their wider environmental and funding strategies ahead of future Sustainable Farming Incentive (SFI) opportunities. Round 2 of SFI is expected to open in September. DEFRA has confirmed that businesses with environmental schemes expiring before the end of February 2027 will be able to apply for land currently covered by those agreements through SFI 2026 Window 2. As funding will be allocated on a first-come, first-served basis, early preparation is essential.

Many projects funded through Capital Grants can complement SFI actions, enabling businesses to take a coordinated approach to environmental delivery, long-term land management and business resilience.

Vicky Price, Partner and Chartered Surveyor at Berrys, said: “The key message is not to wait, but to start preparing now. Businesses that have identified projects, explored SFI opportunities, gathered the necessary evidence and considered how funding fits within their wider plans will be best placed to secure support.

“With Capital Grants open for applications and further SFI opportunities expected later this year, now is the ideal time to review available options and prepare applications.”

For further information, contact Vicky Price at Berrys on 07789 986904.