Navigating Grants and Subsidies in 2026
March 2026
The outlook on environmental grants and subsidies is looking more positive for the farming community. DEFRA Secretary, Emma Reynolds, has recently announced that the Farming Equipment & Technology Fund (FETF) will re-open this spring, with the Sustainable Farming Incentive (SFI) and Capital Grants scheme re-launching in the summer.
The FETF will provide grant funding for farmers, horticulturalists, forestry owners, and contractors to invest in equipment that enhances productivity, manages slurry, and improves animal health and welfare. Grant funding up to £25,000 will be available for each theme.
The reformed SFI will open in two application windows, one in June for ‘smaller’ farms or those without existing agreements and one in September for all farms. The simplified scheme will ensure funding is spread more widely, with changes that include an annual agreement payment cap of £100,000, a reduction in actions from 102 to 71 and removal of the management payment.
A new round of the Capital Grants scheme will re-open in July, with an increased budget of £225 million, compared to the £150 million available last year. Funding will cover a range of items that contribute to environmental benefits, such as managing boundaries, restoring habitats and improving water and air quality. The scheme is highly competitive and the window is expected to be short, so planning in advance is essential.
The Basic Payment Scheme de-linked payments will continue to reduce until 2027 when they will be phased out entirely. Therefore, now is a good time to plan ahead and look to explore the new funding opportunities.
GTH’s rural team across the West Country are ready to answer any questions and help you navigate through these ever-changing grants and subsidies, offering expertise, strategic insight, and providing practical support. For more information, get in touch with your local rural office or email [email protected].
The FETF will provide grant funding for farmers, horticulturalists, forestry owners, and contractors to invest in equipment that enhances productivity, manages slurry, and improves animal health and welfare. Grant funding up to £25,000 will be available for each theme.
The reformed SFI will open in two application windows, one in June for ‘smaller’ farms or those without existing agreements and one in September for all farms. The simplified scheme will ensure funding is spread more widely, with changes that include an annual agreement payment cap of £100,000, a reduction in actions from 102 to 71 and removal of the management payment.
A new round of the Capital Grants scheme will re-open in July, with an increased budget of £225 million, compared to the £150 million available last year. Funding will cover a range of items that contribute to environmental benefits, such as managing boundaries, restoring habitats and improving water and air quality. The scheme is highly competitive and the window is expected to be short, so planning in advance is essential.
The Basic Payment Scheme de-linked payments will continue to reduce until 2027 when they will be phased out entirely. Therefore, now is a good time to plan ahead and look to explore the new funding opportunities.
GTH’s rural team across the West Country are ready to answer any questions and help you navigate through these ever-changing grants and subsidies, offering expertise, strategic insight, and providing practical support. For more information, get in touch with your local rural office or email [email protected].