DEFRA grant funding is back, with the first application window for the Sustainable Farming Incentive (SFI) opening today, and Capital Grants due to reopen in July 2026. Following a period of uncertainty, funding opportunities are once again becoming available for farmers, landowners and rural businesses looking to invest in environmental improvements, habitat creation and wider land management projects.
With demand expected to be high, now is the time to explore what opportunities may be right for your farm or estate and begin planning ahead.
Capital Grants Reopen in July
One of the most significant opportunities this year is the reopening of Capital Grants, with applications due to open in July 2026. Defra has announced a £225 million investment package to support environmental improvements across England.
Funding will be available for a wide range of projects, with 80 capital items available on the new scheme, grouped into the following categories:
• Hedgerow planting and restoration
• Traditional boundary restoration
• Tree and orchard creation
• Natural flood management measures
• Water quality improvements
• Air quality improvements
• Environmental assessments and planning work
These grants offer an excellent opportunity for farmers and landowners to deliver practical improvements while securing valuable financial support – with significant interest expected, early preparation will be key. The full guidance and list of capital items available can be found at: https://www.gov.uk/government/publications/capital-grants-2026/applicants-guide-capital-grants-2026.
Sustainable Farming Incentive
Latest guidance states there will be two application windows for the SFI scheme 2026: Window 1, open now, for small farms (5-20 Ha) and those without existing Land Management Agreements, and Window 2 expected to open in September for all other eligible farms. The full published rules, guidance and eligibility criteria can found at: https://www.gov.uk/government/publications/sustainable-farming-incentive-2026-sfi26/sfi26-scheme-rules-and-guidance.
Don’t Wait Until Applications Open
The grant schemes attract strong interest, and available budgets can be allocated quickly. Most successful applications are those that have been planned well in advance with supporting information, costings and project details ready to go when schemes open and where eligibility, land details and permissions are correct. Now is the ideal time to review your farm, identify potential projects and ensure you are prepared to take advantage of the funding available and don’t miss out.
How We Can Help
Our Rural Surveying and Land Agency team is already helping farmers, landowners and estates identify suitable opportunities and prepare applications ahead of scheme openings. If you are considering environmental improvements, habitat creation, diversification projects or wider farm enhancements, get in touch with our team to discuss how we can help you make the most of the funding options available.
Please contact Eloise Baker or James Holgate on 01509 243720 at the Andrew Granger Rural office in Loughborough.