Defra has issued guidance for the 2026 Capital Grants scheme.
Applications open in July, with funding available for a variety of capital items to support hedgerow and tree planting, restore boundaries, improve natural flood management, and support better air and water quality. Defra has committed a total of £225 million for the scheme to help farmers and land managers carry out environmental improvements across England.
The available remain as the same six groups as last year’s, these being:
- boundaries, trees and orchards
- improved water quality
- improved air quality
- improved natural flood management
- assessments
- improvements
Funding limits will continue to apply to four of these groups:
- Up to £25,000 for the air quality, natural flood management and water quality groups
- Up to £35,000 for the boundaries, trees and orchards groups
In a change from last year, the agroforestry items and the woodland condition assessment will not be available through Capital Grants. Defra says these will be available later this year through the Higher Tier Capital Grants offer.
As with last year’s offer, applicants can submit one eligible application for each Single Business Identifier (SBI) they manage. Defra notes that demand last year was very high, and it expects strong interest again this year.
Last year’s offer committed funding for more than 1,200km of new hedgerows, creating valuable habitats for birds and pollinators. It also supported the renewal of more than 800 concrete yards, helping improve slurry and effluent management and reduce pollution entering watercourses.
Defra policy advisor Sarah Blatchford says applicants need to take care with their submissions after some applications were rejected or delayed last year.
“In 2025, many applications were incomplete, which caused delays and meant some applications were rejected. We therefore ask applicants to provide their supporting evidence together with their application.
“This includes completing previous claims, checking business and land details, making sure maps are accurate, and preparing financial evidence if applying for more than £50,000.”
