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.

CLA and NFU concern

The Country Land and Business Association (CLA) said it was concerning that the capital grant scheme had been paused and it urged the RPA to work through the backlog at pace, communicating its progress.

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 its farmer-members 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.”