Groups of farmers and landowners can now apply for large grants to help improve water bodies such as rivers and lakes.
Defra's Water Restoration Fund will distribute money gathered from water company fines rather than the agricultural budget – a total of £11 million.
Anglian Water, South West Water, Thames Water, United Utilities, and Yorkshire Water have all been fined and the grants will be allocated to the areas they serve.
Groups of farmers and landowners can either apply for capacity-building grants, ranging from £75,000 to £250,000, or delivery grants, ranging from £500,000 to £2m.
NFU Environment Forum chair, Richard Bramley said the grants should improve the water environment of rivers and their headwaters, lakes, canals, ponds, wetlands and estuaries.
“Grants could support any on-farm scheme or projects our members are involved in as part of farm cluster groups," he explained.
“This should boost nature, create habitats for wildlife, and benefit water quality.”
Defra says that it wants the grants to fund nature-based solutions, better community access, and innovative technologies.
It also wants local groups and farm clusters to join forces and apply for grants to fund projects at a catchment scale.
The deadline for submitting an application is 7 June 2024.
Defra says it expects to award grants at the end of July.