Defra pauses new capital grant scheme offers

Defra has temporarily paused new offers for its capital grant scheme following an unexpected surge in applications and rising budget pressures, according to the Central Association of Agricultural Valuers (CAAV).

The scheme is under review by the Rural Payments Agency (RPA), with a government announcement anticipated soon.

In a statement, the CAAV noted significant delays in progressing grant applications to agreement stages.

See also: CLA criticises Defra delay to CS Higher Tier scheme

“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,” the association said, adding that it is pressing for clarity.

Several farmers have expressed their frustration on X over delays to their capital grant scheme applications. Some said they submitted claims two or three months ago, but were still waiting approval.

Capital grants are vital to farmers and land managers, funding projects across England that promote environmental benefits such as hedgerow planting, water quality improvements, and air pollution reduction.

The grants also support broader Environmental Land Management goals through schemes like the Sustainable Farming Incentive, Countryside Stewardship, and Higher Level Stewardship.

Defra confirmation

A spokesperson for Defra confirmed the review, saying: “We will simplify and rationalise our grant funding, ensuring that grants are targeted towards those who need them most and where they can deliver the most benefit for food security and nature.

“We will confirm future grant rounds in due course.”

Speculation that the scheme had been temporarily halted due to some people submitting fraudulent claims was “unfounded”, the spokesperson added.

The CAAV expressed concern over the uncertainty, emphasising the importance of clear communication from the RPA.