Capital Grants - Applications open 30 July

DEFRA have now confirmed that the CS Capital Grants application window will open on 30th July 2026.

There is a pot of £225 million, but we have seen in previous years how quickly that pot can disappear. If you are interested in applying, it is essential to get everything ready now so that we can get everything submitted as soon as the window opens - we don't want any of you to miss out!

Examples of Capital items include:

• Fencing

• Gates

• Hedge Planting

• Hedge Laying

• Tree Surgery

• Tree Planting

• Stone Walling

The full list of available items can be found here

We have helped many clients review guidance, check eligibility and prioritise items that deliver the greatest benefit. With strict limits in place for each category, planning early is even more important.

The confirmed caps for each category are:

• £25,000 for water quality (including fencing)

• £25,000 for air quality

• £25,000 for natural flood management

• £35,000 for boundaries, trees and orchards

We have already drafted applications for many of you, and rest assured these are in the system ready to go as soon as the window opens.

If you are considering an application and would like our assistance, please get in touch as soon as possible. We will be extremely busy once the window opens!

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Office

01454 614624

Sam Kelly

07777 696080

Jonathan Purton

07399 117257

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SFI26: Scheme Information Finally Available

DEFRA have today released further detail on the Sustainable Farming Incentive 2026 (SFI26), with (nearly) final scheme information now available ahead of applications opening later this month.

Whilst we are still awaiting final confirmation of some elements, this is the clearest picture yet of how the scheme will operate and what farm businesses should be doing now to prepare.

Application Windows Confirmed

DEFRA have confirmed that SFI26 will be rolled out in two stages:

Window 1 – from 30 June 2026 (they said June to be fair to them, but they couldn’t have stretched it much further!!)   Applications in this window will be open to:

• Small farms (generally under 50ha)

• Farms without an existing ELM revenue agreement

  
  

A limited number of eligible farms will be invited to apply from around 18 June to test the system ahead of full rollout.

Window 2 – September 2026

• Open to all eligible farms and land managers

  
  

As with previous guidance, there is a strong indication that budget availability will dictate how long each window remains open, so early preparation remains key.

What’s Been Published?

The information released now includes nearly final (but not completely final!!) versions of:

• Scheme terms and conditions

• Scheme rules

• Full list of SFI26 actions

• Application and agreement management guidance

  
  

These documents finally allow us to start reviewing options properly for clients now ahead of the application window opening.

Final versions are expected to be published in mid June.  

Key Rules and Limits to Remember

While much of this has been known for some time, the latest release reinforces several important constraints:

• Minimum farm size: 3 hectares

• One 2026 agreement per business – you can still apply if you have a 2023 or 2024 agreement. 

• Maximum value: £100,000 per year

• Agreement length: typically 3 years

• Rotational actions limited after Year 1 – you will no longer be able to increase the area from year 2. 

  
  

These limitations mean that getting the initial agreement structure right is critical, particularly where rotational options are concerned.

Our key message remains unchanged – make sure your application is well planned and not rushed at the end.   With tighter rules, capped payments, and restrictions on changing agreements later, the cost of getting it wrong at the outset is higher than before.

Need Support?

We have already been in contact with many of your directly, and this guidance means that we can now get started properly on drafting applications.   We will be in touch over the next couple of weeks to finalise your application if you qualify for the first application window.  

If we haven’t already been in contact about an application and you would like some support, please get in touch as soon as possible.  

Careful planning now will make a significant difference to both scheme income and overall farm performance over the next three years.

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Office

01454 614624

Sam Kelly

07777 696080

Jonathan Purton

07399 117257

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Capital Grants 2026 Update

DEFRA has now published the detailed guidance for the 2026 Capital Grants offer ahead of applications opening in July.

The biggest headline remains the increased funding pot, with £225 million allocated to Capital Grants in 2026, up significantly from the 2025 offer. However, we know demand is going to be very strong, so it is important to start work on your application now to ensure you are ready to submit as soon as the application window formally opens.

We would also strongly encourage businesses to ensure existing agreements and claims are fully up to date before the new window opens. Outstanding capital claims, incomplete agreements or mapping issues may restrict or delay new applications.

DEFRA has already indicated it will again provide updates as 25%, 50% and 75% of the budget is allocated once the scheme opens. Given how quickly funding was allocated last year, we would not recommend delaying applications unnecessarily.

DEFRA has confirmed that spending caps will broadly remain unchanged for the main categories:

• £25,000 for water quality (including fencing)

• £25,000 for air quality

• £25,000 for natural flood management

• £35,000 for boundaries, trees and orchards

We are currently working with clients on potential 2026 Capital Grant applications and reviewing projects to ensure they are application ready ahead of the expected July launch.

If we are not already in contact regarding a potential application and you would like assistance, please get in touch as soon as possible.

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Office

01454 614624

Sam Kelly

07777 696080

Jonathan Purton

07399 117257

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