New Defra Funding: What farmers need to know

Are the wheels finally turning at Defra, asks Jack Pierce?

Last week, Steve Reed, Secretary of State for Environment, Food and Rural Affairs, made a series of key announcements at the 2025 NFU Conference. While the spotlight remained on the drastic changes to the farming tax system, Reed announced some promising developments that could present new opportunities for farmers and growers across England.

Here are our key takeaways:

The Return of Capital Grants

The unexpected pause of Countryside Stewardship capital grants last year left many farmers frustrated. However, Reed confirmed that Defra will now process over 4,000 outstanding applications from last year, offering renewed hope for those who had been left in limbo. It is worth pointing out that new limits have now been introduced for the four categories: £25,000 for water quality, £25,000 for air quality, £25,000 for natural flood management and £35,000 for boundaries, trees, and orchards.

So, what’s next?

There appear to be some exciting opportunities for farmers ready to innovate, improve efficiency, and enhance infrastructure

Good News for Higher Level Stewardship (HLS) Scheme Holders

Defra has pledged an additional £30 million to boost Higher Level Stewardship payments this year. While the exact payment rates have yet to be announced, this move signals a positive step forward for farmers tied into extended schemes. Whether these increases will match the support provided by Countryside Stewardship remains to be seen, but we’re keenly awaiting the details.

The Return of the Farming Equipment and Technology Fund (FETF)

From spring 2025, Defra will reopen the Farming Equipment and Technology Fund (FETF) to help bring new equipment onto farms, driving innovation, efficiency, and productivity improvements. This grant presents an excellent opportunity for farmers to invest in their businesses with financial support.

Over the last three rounds, FETF has provided over £107 million in funding to farmers. While this is certainly welcome news, it is crucial to read the terms and conditions carefully. Historically, equipment must be brand new and purchased outright. Given increasing financial pressures, farmers should carefully assess the implications of capital investments and explore alternative funding options.

The Long-Awaited Farming Innovation Programme

With more than £42 million in funding, the Farming Innovation Programme will support plant breeding, net-zero transitions, and more. Here’s how the funding breaks down:

• Up to £12.5 million for genetic technology research to deliver practical benefits for farmers.
• Up to £12.5 million to support farmers and growers in adopting technologies and practices for the transition to net zero.
• Up to £17.6 million for early-stage feasibility projects and R&D commercialisation work.

While the funding is promising, it must address the real-world challenges farmers and growers face. We’ll be watching closely to see how these funds are allocated.

The Accelerating Development of Practices and Technologies (ADOPT) Fund

My favourite! One of the most exciting announcements is the ADOPT fund, which will support collaborative, farmer-led, on-farm trials and experiments. This initiative provides an invaluable opportunity for “farmer science”—bridging the gap between farmers and research organisations. By fostering hands-on innovation, ADOPT has the potential to drive real, practical improvements in the industry.

Whether you manage a smallholding, farm, or estate, we’d love to discuss these funding opportunities with you

Anything Else?

A few more important updates:

• Farming in Protected Landscapes (FiPL) has been extended to 2026, meaning land managers in National Landscapes (formerly Areas of Outstanding Natural Beauty), National Parks, and the Broads can apply for funding for nature recovery projects.
• The Animal Health and Welfare Review has expanded its scope. Previously, funding covered only one livestock species per visit. Now, visits can include all livestock on a farm. Starting this summer, each individual flock or herd will also be eligible—great news for farmers managing multiple groups.

What’s Next?

While this long-overdue set of announcements is a step in the right direction, the devil is in the details, and we are now examining all the proposals closely. Nevertheless, there appear to be some exciting opportunities for farmers ready to innovate, improve efficiency, and enhance infrastructure.

Whether you manage a smallholding, farm, or estate, we’d love to discuss these funding opportunities with you. Our team specialises in project planning, grant writing, and implementation, ensuring you maximise your chances of success.

Get in touch today for further advice on these announcements—and find out how we can help you make the most of these new opportunities!

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