New Agricultural Funding Opportunities: What You Need to Know

Key Financial Updates for Agri-Businesses

On 24 February, the government revealed several significant funding initiatives that could provide useful for farmers.

Higher Level Stewardship Payment Increases

If you are already engaged in Higher Level Stewardship (HLS) agreements, you will be pleased to learn that payment rates are being increased across a range of options. This is particularly beneficial for:

• Upland farmers who have pioneered nature-friendly farming practices
• Those with species-rich grasslands
• Farmers managing important natural habitats

For existing HLS agreement holders, these payment increases will boost your income without additional commitments. We recommend that you review your existing agreements to understand how these increases will affect your cash flow projections for the new financial year.

ELM Capital Grants Scheme Reopening

The Environmental Land Management (ELM) Capital Grants scheme will reopen this summer with approximately £45 million of funding available for 2025/26. This represents a welcome opportunity for capital investment with government support.

The Rural Payments Agency are still working through around 4,000 applications from the previous round, with these agreements expected to be worth £120 million over their lifetime. If you previously applied but have not received confirmation, your application should be under review.

Equipment and Technology Investment Opportunities

It has been announced that a total of £110 million has been invested in equipment and technology grants, with several programs launching this spring:

1. Farming Equipment and Technology Fund (FETF): Grants between £1,000 and £25,000 will be made available for buying qualifying equipment 
2. Farming Innovation Programme (FIP): Over £42.5 million in grants for precision breeding and supporting net zero transition support
3. ADOPT Fund: £20 million invested for farmer-led trials to bridge the gap between new technologies and on-farm adoption

From a tax planning perspective, these grants are an excellent opportunity to invest in business improvements while potentially benefiting from both capital allowances and grant funding. We recommend preparing now so that you will be ready when the applications are available.

Should you wish to discuss how any of these schemes may be applicable to your own agricultural business, please don't hesitate to contact our agricultural specialists for advice.