Govt accused of cutting off funding for farmers 

Capital grants to help farmers carry out Sustainable Farming Incentive (SFI) actions, have been paused by the government.

The grants pay for capital items to support improvements to woodland management, restocking or improving woodland after tree health problems, managing the impact of beavers, and other environmental benefits.

The capital grants page on gov.uk was updated on 26^th November, and applications for capital grants 2024 are currently closed.

Farmer Joe Stanley wrote on X: “What a situation; the government changes the entire social contract with farmers to make them deliver for the environment, then cuts the funding off when farmers rise to the challenge.”

Lake District farmer Andrea Meanwell is quoted by The Guardian as saying:

“We have made changes to our grazing, management and breeds to plan for the agricultural transition but this is all very challenging.”

Signed agreements will be met

Defra said the grants had temporarily closed due to unprecedented demand.

As of November, the Rural Payments Agency had received more applications for the standalone capital offer than over the whole of the 2023-2024 financial year.

Applications from May to November this year are worth 42% more than all applications received in the last financial year.

Defra said the high demand for some grant items has led to spending levels that “aren’t sustainable for this year”.

Grant funding will be ‘simplified and rationalised’ to ensure funding can be prioritised, the department added.

Part of the overall capital grant offer (76 grant items) will temporarily close to most new applications and a further update will be shared in early 2025.

A Defra spokesperson said agreements that have already been signed will be met, with further funding prioritised to help build a sustainable farming sector.

You can still apply for:

• Woodland Tree Health grants, which help protect tree health against devastating plant pests and diseases
• Capital grant plans and management plans to help support the development of new CS Higher Tier agreements
• Protection and Infrastructure grants and Higher Tier capital grants, which help support delivery of high value environmental benefits, such as re-wetting peat.    

READ MORE: Over 2.7 million people have already signed petition calling for new general election

READ MORE: Backlash as govt commits £70m to overseas food security

READ MORE: What does the Budget really mean for farming?

Ongoing funding worries

The news follows widespread protests over the government’s decision to halve inheritance tax relief for farms worth over £1 million. 

Farming subsidies were also cut by 79% for 2025 – a much sharper decline than the industry was expecting. 

The government additionally delayed releasing information on Countryside Stewardship Higher Tier arrangements – farmers were told they could start preparing applications in late summer. 

Defra has said more information will be published in December and a rolling application window will open in 2025 for Higher Tier.

Read more political news.