Defra has confirmed that it is being forced to temporarily close some capital grant offers to new applications, due to budget constraints.
It was confirmed in the Autumn Budget that Defra was committing was committing £5 billion to the farming budget over two years, what it described as the ‘largest budget for sustainable food production and nature’s recovery in our country’s history’.
But this has not prevented some immediate pressures on some of its key schemes to support farmers.
“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,” a Defra spokesperson said, in response to growing concerns within the industry over grant payments.
The pause affects a total of 76 grant items, which will close to new applications so that funding can be prioritised to where it is most needed.
This means that for producers who have applied already for grants that are temporarily withdrawn, it will be on hold for now. Applicants will be contacted ‘in early 2025’ with information about what happens next.
The RPA will continue to accept new applications in this period for:
- Capital grant plans and management plans that 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.
- Woodland Tree Health grants.
The Sustainable Farming Incentive (SFI) is open to farmers and Defra said there has been a 13% increase in the number of SFI agreements since July 2024, with nearly 30,000 agreements now live.
Review
The Central Association of Agricultural Valuers (CAAV) said: “We have been made aware that the RPA, in light of an increase in application numbers and values, and growing budget pressures, is currently undertaking a review of the scheme and that they are not issuing any offers at the moment.”
Farmers Weekly reported that several farmers have expressed their frustration on social media over delays to their capital grant scheme applications. Some said they submitted claims two or three months ago, but were still waiting approval.
Country Land and Business Association (CLA) deputy president Gavin Lane said: “Our members need clarity as soon as possible, including those who are waiting to hear back on applications they have submitted, and those who were planning on applying for a new agreement.”
The NFU said it is very concerned about the impact any hold on capital grant application offers could have on farmers waiting to start planned capital work over the winter.
“The lack of budget transparency right now is creating huge uncertainty,” said NFU deputy president David Exwood.
“We have raised our concerns with the RPA. It’s vital that the RPA follows its outlined process to deal with any oversubscribed grants.”