More than half of the £150m capital grants pot for England has already been snapped up, according to Defra, just weeks after applications reopened.
The scheme, which reopened on 3 July after an abrupt closure last November, has seen a surge in interest from a sector under mounting financial pressure.
Defra confirmed in a blog post that over 50% of available funds have now been allocated and warned that the remaining budget could run out quickly.
The department said it would close the scheme “as soon as the remaining budget is fully allocated”, with no further applications accepted once that point is reached — including those that have been started but not yet submitted.
While Defra aims to provide advance notice of the closing date, it cautioned that “this may not always be feasible”, and stressed that eligibility alone does not guarantee funding.
The funding will support a wide range of on-farm improvements – from tree planting and flood prevention to upgraded slurry systems and water filtration.
The initiative is intended to help farmers in England to improve profitability while also protecting natural resources such as soil and water.
Last year, the scheme contributed to the planting of over 4,000 miles of hedgerows and the modernisation of slurry infrastructure – measures credited with delivering real environmental benefits and supporting farm resilience.
Under this latest round of the capital grants offer, farmers and land managers can apply for funding for a total of 78 capital items.
NFU deputy president David Exwood responded: “We welcome Defra communicating openly with farmers and growers about the capacity of the capital grants scheme and finally confirming when CSHT will open.
"With so many cashflow pressures on farm businesses right now and direct payments rapidly decreasing this year, it’s understandable that farmers are making the most of the only available scheme to them at the moment."
He added: "It shows the enthusiasm and appetite for environmental delivery on farm.”
In a separate update, Defra confirmed that applications for Countryside Stewardship Higher Tier (CSHT) will open in September, but only for those who have received an invitation to apply, completed the required preparatory work, and obtained pre-application advice.
The move brings clarity for farmers in limbo after months of uncertainty.
Mr Exwood added: “The opening of the CSHT delivers much-needed certainty for those farmers who have been receiving pre-application advice for the scheme and we look forward to seeing more details.”
Looking ahead, Defra said it plans to enhance the capital grants offer and expects a new round of funding to open in 2026.
