Capital Grant Closure Update

DEFRA (Department for Environment, Food and Rural Affairs) announced that part of the capital grant offer has temporarily closed to new applicants due to exceptional demand resulting in spending levels that aren't sustainable for this year.

The overall capital grant offer funds various boundary items such as hedgerow works, dry wall restoration and fencing, as well as water quality options such as concrete of yards, covers over muck stores and sprayer wash down areas.

A budget of ￡5 billion has been allocated for farming and the environment over the next two years, and the RPA (Rural Payments Agency) has reported that over ￡120 million has been paid out already this year.

They have specified that the following grants will still be available during this period:

·?????? Woodland Tree Health grants, which help protect tree health against devastating plant pests and diseases.??????

·?????? Capital grant plans?and management plans?are important to help support the development of new CS Higher Tier agreements.???

·?????? Protection and Infrastructure grants?and?Higher Tier capital grants,?help support delivery of high value environmental benefits, such as re-wetting peat.????

The RPA reported that payments under existing agreements will continue to follow the current process, and changes will only impact new applications. If your application is for one of the grants that are still open, it is being processed and you should expect to receive an offer providing there are no issues with your application. If your application relates to the capital grant elements that are temporarily withdrawn, it will be on hold for now. You will be contacted in early 2025 with information about what happens next.?

Commenting on the detail provided by the RPA, Helen Johnston, Associate at youngsRPS said: “We have seen very few capital grant applications approved since the general election. We are expecting more information on the process of these applications and are pushing for a timeline for agreement offers coming through.”

Commenting on the temporary closure, Charles Raine, Director at youngsRPS, said: “This is another blow for the agricultural sector following a recent delinked payment reduction and changes to inheritance tax. DEFRA stated that their budget over the next two years, ￡5 billion, is the largest amount ever offered by government to support rural business and promised to maintain and increase budgets to support infrastructure and environmental benefit. This support is yet to be seen.”

“We understand that farmers up and down the country need clarity, and we will continue to support our rural communities during this turbulent period. As with recent announcements, we urge farmers to seek advice regarding alternative routes forward and welcome a free initial discussion about options.”

We expect further announcements in early 2025.