Farm innovation fund rises to £123m after new government backing

A fresh £53 million funding boost will back farming projects aimed at cutting costs, reducing inputs and helping businesses cope with labour shortages, climate pressures and tight margins.

The government has confirmed that the Farming Innovation Programme will receive the additional funding this year, taking total investment in the scheme to £123m for the 2026/27 financial year.

The extra support follows the £70m announced at the NFU Conference in February and is aimed at backing practical, farmer-led projects across the sector.

The funding comes as many farm businesses continue to face high input costs, volatile fertiliser prices, labour shortages and pressure to produce more with fewer resources.

Delivered in partnership with Innovate UK, the programme helps farmers, growers and agri-businesses develop and test new ideas in real farming conditions. It supports projects from early research and development through to on-farm trials and commercial rollout.

Defra said the funding would help those “trialling new technologies and innovative approaches” to reduce costs, improve productivity and strengthen farm resilience.

The investment forms part of the government’s Industrial Strategy pledge to spend at least £200m on agricultural innovation by 2030.

A series of competitions will open throughout 2026, including support for ADOPT on-farm trials, feasibility studies, automation and robotics, soil health and water quality.

ADOPT grants will offer between £50,000 and £200,000 for farmer-led projects lasting up to two years. Facilitator support grants worth £2,500 will also be available to help applicants prepare full proposals.

Feasibility study funding will range from £200,000 to £500,000, supporting projects that test whether new technologies or approaches can work in practice.

Larger Small R&D grants, worth between £1m and £3m, will support collaborative research and development projects to create new products and services over a period of up to three years.

Farming Futures competitions will also open later this year, with a focus on automation, robotics, soils and water quality.

The government says previous projects show how research funding can move beyond the laboratory and deliver practical benefits on farm.

One project, SlurryBugs, is working to improve the fertiliser value of slurry and reduce ammonia emissions. Slurry can be a valuable nutrient source on farms, but poor management can lead to nitrogen losses and increase reliance on synthetic fertilisers.

Lancashire-based EnviroSystems UK partnered with Myerscough College on an 18-month feasibility project to develop a bacterial solution that helps retain more of slurry’s nutrient value.

The research has led to two microbial products that can be added to slurry to improve its use as a fertiliser. Supporters say the approach could help farmers cut input costs while making better use of nutrients already available on farm.

Another project, led with Harper Adams University, is testing whether robotic strip cropping could offer an alternative to conventional large-scale arable systems.

The project involves an East Midlands arable farmer trialling a gantry robot to grow crops in one-metre-wide strips. Rather than planting a single crop across a large field, the system uses a mix of cereals, legumes and companion crops.

The aim is to increase crop diversity, reduce disease pressure, cut reliance on artificial inputs and make better use of natural processes such as nitrogen fixation.

Researchers are monitoring yields, crop health and biodiversity to assess whether the system could be adopted more widely.

A third project, ENRICH, is looking at how beneficial bacteria could help wheat plants use nitrogen more efficiently.

The project, led by FA Bio, is exploring ways to reduce farmers’ reliance on synthetic nitrogen fertilisers, which remain one of the biggest costs for arable businesses.

The team has already identified several promising bacterial strains and scaled up production. Field and glasshouse trials are now under way to test how the bacteria perform in real growing conditions.

If successful, the technology could help farmers reduce fertiliser use while maintaining productivity. That could lower input costs, reduce environmental impacts and improve resilience against future fertiliser price volatility.

Defra said further guidance would be published as competitions open throughout the year.