Defra accused of breaking own rules on capital grants

Defra and the Rural Payments Agency (RPA) are facing criticism after failing to provide farmers with the promised six weeks’ notice of funding changes to the capital grants scheme, a breach of their own rules.

The move has sparked frustration among farmers and environmental groups, who accuse the government of eroding trust and jeopardising rural sustainability projects.

On Wednesday 27 November, Defra announced the temporary closure of new applications for 76 grant items under the scheme.

See also: Defra pauses new capital grant scheme offers

The NFU described the sudden closure of many capital grant items as a “real blow” to farmers, many of whom were relying on this funding to complete crucial environmental goals.

NFU deputy president David Exwood said farmers and growers have been “left in the lurch” with no confirmation that applications already in the system will be processed.

The NFU is holding urgent meetings with the government to try and get much-needed clarity for its farmer-members.

‘Exceptional’ demand – Defra

Defra said the demand for capital grants this year has been “exceptional” and it has paid out more than £120m under these schemes.

The value of applications has also increased significantly – with applications from May to November this year worth 42% more than all applications received last financial year. 

Defra also said the decision was necessary to prioritise funding for areas that deliver the greatest benefits for food security and nature conservation.

However, applicants say the sudden announcement contradicts Defra’s guidelines, which state that the RPA must give six weeks’ notice if funds are likely to be oversubscribed.

The capital grants scheme, part of England’s Environmental Land Management (ELM) program, supports sustainable farming initiatives such as hedgerow planting, soil protection, and water conservation.

Tom Cooper, a land agent and chartered surveyor who runs Cooper Rural, based in Doncaster, says six of his clients have been waiting for a decision on their capital grant applications since August.

‘Woeful’ treatment

Tom described the treatment of farmers by Defra as “woeful”.

“The RPA made it very clear that six weeks’ notice would be given before the closure of the capital grant scheme, yet they have strung all applicants along for months telling them their applications were under review,” he said.

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.”