The Rural Payments Agency (RPA), which administers farm subsidies on behalf of DEFRA, has announced the closure of the capital grant schemes in England.

The agency blamed exceptionally high demand, forecasting 49% more to be spent this year than last. The RPA states it has already paid out £120 million across the capital grant offers this year.

It has been confirmed that payments under existing agreements will continue as usual and the same process is expected to be followed to claim those payments.

The RPA hopes to provide a further update on capital grants in early 2025, which is greatly frustrating for farmers as it creates further uncertainty within the sector. 

The closure of the capital grant applications is the latest blow to farmers, following the UK Budget in October which announced that land based payments would be cut by 79% and the changes to Inheritance Tax.

Farmers are left feeling confused as they have been asked to adopt measures to improve the environment and provide public goods with public money. This funding has now been revoked despite the RPA claiming to be dedicated to supporting sustainable food production and nature recovery with the largest ever budget of £5billion allocated over the next two years.

There are still a few avenues in which capital grants can be accessed such as the Woodland Tree Health grants, Capital Grant Plans and Management plans, Protection and Infrastructure grants and Higher Tier Capital Grants.

Our forestry and rural team are able to advise on specific grants that are still available and can help prepare and submit applications to access this funding.

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