Defra warns missing paperwork could delay Capital Grant applications

Farmers could miss out on 2026 Capital Grants unless they get key evidence ready before applications open later this month, Defra has warned.

The scheme is scheduled to open in late July, with funding available for practical environmental improvements across England.

Capital Grants support farmers, land managers and rural businesses to carry out work including tree and hedgerow planting, water quality improvements and other environmental projects.

Defra said strong interest is expected again this year, with demand likely to exceed the funding available.

Applicants must submit supporting information to the Rural Payments Agency within 10 days of submitting their application, with Defra warning that incomplete forms slowed decisions last year.

In some cases, applications could not be taken forward because the missing evidence was not received before the deadline.

Defra said having the correct information ready from the start would help applications be assessed more efficiently and give farmers the best chance of receiving a timely decision.

Applications can be made online through the Rural Payments service, but farmers must be registered before applying.

Applicants are being advised to check that their business details are up to date with the RPA and that land parcels are correctly registered and mapped in the Rural Payments service. Accurate maps can help avoid delays and should show where capital works will take place, any historic features being restored, or areas covered by woodland condition assessments.

Farmers with completed works under existing Countryside Stewardship or Capital Grant agreements should submit any outstanding claims before applying again.

They will also need to confirm through the customer portal if it is their final claim for those works, as this can release the land parcel from an existing agreement and allow it to be included in a new Capital Grant application.

Because Capital Grants are paid after work has been completed and claimed for, applicants must be able to fund projects upfront.

Those applying for more than £50,000 will need to provide a letter from a qualified accountant confirming that the business, or Single Business Identifier, has sufficient funds available through profits, reserves, loans or other financing arrangements.

Defra said farmers could estimate the value of their application in advance by using the Capital Grant finder on GOV.UK to check payment rates for individual items.

For 24 grant items, applicants must have received Catchment Sensitive Farming support before the offer opens, although support received within the past two years can be used.

The items include works linked to slurry, livestock infrastructure, yard drainage, pesticide handling, water quality, leaky woody dams and tree planting.

Defra said demand for CSF advice has been high, with advisers currently focusing on existing requests rather than new advisory visits for this round.

Further visits are expected later in the year as capacity becomes available.

Tenant farmers should also check whether they need landlord approval, as a countersignature and Land Ownership and Control Form may be required where a tenancy does not cover at least five years.

Some capital works may require additional permissions or evidence, including projects affecting historic or archaeological features or land within a Site of Special Scientific Interest.

Works involving historic features may need advice or consent from Historic England, while land in an SSSI will require Natural England consent before an agreement can begin.

Defra said applicants should check the Capital Grant finder and applicant guide before the scheme opens, warning that complete evidence will be vital where demand exceeds available funding.