Capital Grants Applications Now Open

Capital Grants applications opened on 31st July.

Capital Grants can help farmers invest in practical improvements to their business, including hedgerow planting, water storage, farmyard drainage and other infrastructure that supports long-term productivity and environmental outcomes.

This new round will make £225 million - 50% more than in 2025 - available to farmers to improve farm infrastructure and carry out works that help them make environmental improvements across England. 

This year there is greater emphasis on submitting supporting evidence up front so that DEFRA can assess applications more quickly and fairly and make the best use of the available funding. Therefore, applicants are encouraged to submit their evidence at the same time they submit their application. 

Funding is available for a range of activities, from planting trees and hedgerows to carrying out works that help improve water quality. Last year, committed Capital Grants funding supported planting over 1,200km of new hedgerows, and laying another 700,000 metres of new hedgerow, providing habitats for birds and insects. Capital Grants also funded 12km of fencing to protect habitats, water courses, and environmental features. There were 26,000 trees planted, including over 16,000 trees in new agroforestry systems, and it funded 9,000 wildlife boxes for birds and bats. 

To get ready to apply for the Capital Grants offer, please read this blog post from earlier this year carefully to understand what supporting evidence you need to prepare to apply.

The 2026 application window will close when all the available funding has been allocated. DEFRA will publish updates on the Farming Blog when approximately 25%, 50% and 75% of the budget has been allocated, but eligible farmers are encouraged to apply as early as possible. 

Read more about Capital Grants opening on the Defra farming Blog.