The 2026 Capital Grants offer is open for applications. The grant can help farmers invest in practical improvements to their business, including hedgerow planting, water storage, farmyard drainage and other infrastructure that supports long-term productivity and environmental outcomes. This new round will make £225 million, 50% more than in 2025, available to farmers to improve farm infrastructure and carry out works that help them make environmental improvements across England.
This year, there is greater emphasis providing supporting evidence up front so applications can be assessed more quickly and fairly and make the best use of the available funding. Therefore, applicants are encouraged to submit their supporting evidence at the same time they submit their application.
Funding is available for a range of activities, from planting trees and hedgerows to carrying out works that help improve water quality. Last year, committed Capital Grants funding supported planting over 1,200km of new hedgerows, and laying another 700,000 metres of new hedgerow, providing habitats for birds and insects. Capital Grants also funded 12km of fencing to protect habitats, water courses, and environmental features. There were 26,000 trees planted, including over 16,000 trees in new agroforestry systems, and it funded 9,000 wildlife boxes for birds and bats.
Before starting an application, please read the Capital Grants 2026 applicant’s guide.
The applicant’s guide sets out:
- who can apply
- which items are available
- the evidence required
- how applications will be assessed
- how to submit an application
The 2026 application window will close when all the available funding has been allocated. Updates will be published on the Farming Blog when approximately 25%, 50% and 75% of the budget has been allocated, but we encourage eligible farmers to apply as early as possible.
Read more about Capital Grants opening on the Defra farming Blog.
