DEFRA has published guidance for the Capital Grants Scheme 2026.  The Scheme will reopen in July, with a significantly larger budget of £225 million, up from £150 million in the previous round. However, demand is expected to be high and the scheme is likely to be oversubscribed, so farmers should prepare applications early.

The Scheme, as in previous years, provides grants towards one-off capital works that deliver environmental benefits. Funding is available for projects such as hedgerow planting and restoration including boundary restoration (such as stone walls and fencing), water quality improvements, educational access and public engagement projects and environmental assessments and plans.

A total of 80 capital items are available, including several new items such as grants for fruit tree planting, stone gate posts and educational access accreditation. However, it is worth noting, that the main spending caps remain unchanged from 2025 for four of the categories, assessment and improvement items sit outside these caps.

To read more about funding within these categories, Catchment Sensitive Farming Approval, tenant farmer advice on gaining approval and practical considerations, TFA members are encouraged to read TFA Members Exclusive Blog #350 – DEFRA Capital Grants 2026 | Key Points Farmers Need to Know.

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This update was written by Lynette Steel, TFA Farm Policy Adviser on 03 June 2026.

Related articles:

The official GOV.UK page: Capital Grants 2026 Guidance