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Capital Grants scheme fully allocated – NFU calls for continued transparency

Environment and climate
Couple sorting household receipts

Photograph: iStockphoto

Following an update earlier this week to say around 75% of the capital grants funding had been allocated, Defra has today announced that the Capital Grants scheme budget is now fully allocated.

Applications re opened for England on 3 July following a sudden closure of the grant offer last November, with £150 million total on offer for this latest round. 

NFU Deputy President David Exwood said: “We recognise the Capital Grants scheme budget is limited and now fully allocated. In the past, transparency has been entirely lacking and we’ve long called for clearer communication to help farmers and growers plan. On that basis the recent timely updates from Defra have been welcome and must continue going forward.

“The strong uptake within the scheme again highlights farmers’ commitment to sustainability and their willingness to invest in delivering environmental benefits, despite the challenges facing the industry.

“It’s now vital we understand how the RPA plans to deal with applications that couldn’t be processed due to outdated records.

“We look forward to continuing to work with Defra to shape the 2026 Capital Grants offer.â€

In an update to its on 22 July, Defra said that 50% of the funding had been allocated, a further update one week later said that this had increased to just under 75%. 

“It’s now vital we understand how the RPA plans to deal with applications that couldn’t be processed due to outdated records.â€

NFU Deputy President David Exwood

CSHT to open in September

In a separate update, Defra confirmed applications for CSHT (Countryside Stewardship Higher Tier) will open in September for those who have been invited to apply, have received pre-application advice and have completed any preparatory work required.

Responding to the news at the time, NFU Deputy President David Exwood said: “We welcome Defra communicating openly with farmers and growers about the capacity of the capital grants scheme and finally confirming when CSHT will open. 

“With so many cashflow pressures on farm businesses right now and direct payments rapidly decreasing this year, it’s understandable that farmers and growers are making the most of the only available scheme to them at the moment. It also shows the enthusiasm and appetite for environmental delivery on farm.

“The opening of the CSHT delivers much needed certainty for those farmers who have been receiving pre-application advice for the scheme and we look forward to seeing more details.â€

Defra has said it plans to improve the capital grants offer and expects to open a new round in 2026.

Read the full update on capital grants on .

You can also stay up to date with latest scheme developments on our CHST and capital grants essential information pages.  

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This page was first published on 22 July 2025. It was updated on 01 August 2025.


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