This scheme is the primary mechanism through which farm businesses in Wales will be able to apply for farm support from 2026 onwards as the Basic Payment Scheme (BPS) is phased out. 

Building on the revised SFS framework published in November last year, the scheme is structured around the principle of universal, optional and collaborative layers, providing both a level of universal consistency for all farm businesses and an opportunity to do more if they wish.  

“This is a scheme for the whole of Wales – a whole farm, whole nation approach,” said deputy first minister Huw Irranca-Davies.    

The Welsh Government explained that the scheme is designed to secure the future of food production while also protecting the environment for generations to come. It recognises farming’s vital role in Welsh communities and culture and addresses challenges like climate change and restoring nature.   

How does it work? 

The Sustainable Farming Scheme will begin on 1st January 2026, with the application form for the universal layer of the scheme being available on the Single Application Form (SAF) via Rural Payments Wales (RPW) online from March through to 15th May each year.       

An annual universal payment will go to farmers joining the scheme who follow the scheme requirements, including a set of universal actions. Many of these actions will be familiar to farmers in Wales, whether beef, dairy, arable, upland, lowland, extensive or intensive. 

The Welsh Government said that the scheme has been made less complex with fewer administrative requirements. Several universal actions have been cut and built on the tried and tested processes and systems of Rural Payments Wales (RPW).  

All farmers entering the scheme will need to complete an opportunity plan for woodland and hedgerow creation in the first year of entry into the scheme. They will need to demonstrate progress towards their plan by the end of the 2028 scheme year.    

Support will be provided for tree and hedgerow planting in the optional layer, including for agroforestry, and there will be a higher payment rate for tree planting during the first three years of the scheme.  

The Welsh Government confirmed that farmers are not expected to plant trees on their most productive land. They will decide where to plant, with clear advice and guidance to ensure the right tree in the right place.  

Farmers in the scheme will need to have at least 10% of their land actively managed as habitat to benefit biodiversity and support nature recovery alongside food production. A range of temporary habitat options are available to choose from if farmers need to do more to meet the 10% requirement. 

‘We accept that the scheme is not perfect’ 

Speaking in response to the publication, president of Farmers’ Union of Wales, Ian Rickman, said: “The scheme published today represents this prolonged period of negotiation, marking a generational milestone for the future of Welsh agriculture. 

“To highlight some of the key successes, we have secured a total budget for the Universal Baseline Payment and BPS taper combined of £238 million, providing workable payment rates and much-needed stability for the sector. This includes the provision of universal payments for common land rights holders. 

“We have retained and strengthened the application of capped and redistributive payments, a longstanding policy position for the FUW and one that maximises the amount of money going to typical Welsh family farms and rural communities. 

“We have also reduced the number of universal actions from 17 to 12 with added flexibility and simplification, including exemptions for tenants and the removal of the unworkable 10% tree cover scheme rule. 

“However, we accept that the scheme is not perfect. The 10% habitat scheme rule will be a concern for many, as will the management requirements that will apply in those areas despite these being less prescriptive than previous agri-environment schemes.” 

‘Transition must be just, not rushed’

CLA Cymru has welcomed the official publication of the Welsh Government’s Sustainable Farming Scheme (SFS), which has been unveiled ahead of the Royal Welsh Show.  

Victoria Bond, director of CLA Cymru, who played a central role in the ministerial roundtable convened by the deputy first minister, helping to shape the scheme into a more practical model, said:

“Whilst we did not agree to all the full scheme details, we do wish to recognise the dedication of the deputy first minister and our colleagues on the ministerial roundtable in the hours of dedication and work involved. This spirit of collaboration has improved the scheme significantly. 

“Most frustratingly, the total budget remains static, and there is a reduction in the BPS taper. However, we do welcome the consideration of a social value payment and the inclusion of payments on common and designated sites.” 

Ms Bond added that “transition must be just, not rushed”. She said that Welsh farmers need clarity, stability, and a clear long-term funding commitment.  

Fraser McAuley, senior policy adviser at CLA Cymru, added: “We have worked closely with Welsh Government to improve this scheme. Significant progress has been made, but there is still more to do. 

“While we recognise improvements in this latest iteration, particularly the removal of the 10% tree cover requirement and inclusion of commons, key issues like tapering of BPS and the lack of a multi-annual budget remain major concerns. 

“We will continue to work with the Welsh Government to provide the tools, clarity and stability land managers need.” 

CLA has established its key concerns: 

• The scheme is still incomplete: Optional and collaborative layers are under development and not yet available. 

• Budget uncertainty: There is no multi-annual commitment. 

• Tapering: BPS will drop to 60% in 2026, 40% in 2027, 20% in 2028, and 0% in 2029. Contradicting previous expectations. 

• Payment mechanism: A ‘Ready Reckoner’ tool will provide estimates, but not guaranteed income. 

• Cap at £300k and tapering above £25k: Larger estates already impacted by Glastir and Habitat Wales changes face further funding cuts. 

CLA Cymru said that its members will continue to press for greater transparency, member readiness support, and multi-annual funding guarantees. 

The team will hold member briefings, provide written guidance, and participate in Royal Welsh Show events on Monday 21st and Wednesday 23rd July and a series of autumn roadshows. 

‘Many will feel stuck between a rock and a hard place’

NFU Cymru said that the Welsh Government has previously confirmed its intention to reduce the BPS to 60% of current payment levels in 2026, having reassured farmers that there would be no ‘cliff edge’ in funding through the transition to new schemes.  

Last November, the government reiterated that it was still its intention to phase out the BPS during the transition period through an incremental reduction in value (20% per year) starting in 2026.  

NFU Cymru said that reneging on this commitment in today’s announcement overshadows much of the positive work undertaken to improve the SFS following the highly controversial ‘Keep farmers farming’ consultation of late 2023/early 2024.  

NFU Cymru president Aled Jones said: “This unwelcome decision by Welsh Government is extremely worrying for farmers in Wales who had previously been informed that those opting not to enter the new Sustainable Farming Scheme in 2026 would receive 80% of their BPS. Farming businesses have forward planned on this basis. 

“This development is even more of a blow given significant guidance and technical detail is yet to be published, which farmers need if they are to make informed decisions about whether to enter the scheme from 1st January 2026.” 

Mr Jones added that with harvest well underway and next year’s cropping and livestock purchases already in motion, many farmers will not be able to pivot their business to join the new scheme from January.  

“Farming families are also grappling with difficult conversations and decisions on how to restructure their businesses to address the changes being forced upon them by the introduction of the UK government’s family farm tax from April 2026. With Welsh Government now slashing the first year of the tapered transition from the BPS, many will feel they are now stuck between a rock and a hard place.”  

The NFU Cymru president said that while the deputy first minister has listened and acted on a number of concerns expressed by the union in recent years, the level of detail, constraints, administration, costs and bureaucracy attached to the SFS is “significant and far greater than anything seen before”.  

“We remain deeply worried about the burden this scheme will place on a sector low in confidence and already dealing with a mountain of red tape. 

“We are pleased that Welsh Government has confirmed a social value payment recognising the wider benefits provided by farming. However, without publication of Welsh Government’s impact assessment and modelling, it is impossible to understand the impact the scheme will have on farm businesses and the supply chain.  

“This information must be made available as soon as possible, and there must be a commitment from Welsh Government to change the scheme if certain sectors or areas are disadvantaged or the scheme is shown to hamper and harm our ambition to continue to grow the Welsh food sector from farm to fork.” 

READ MORE: First minister faces backlash from Welsh farming community

READ MORE: Thousands of wellies on display at Senedd in protest of SFS policy proposals

READ MORE: Why did rural affairs minister refuse to talk about farmers’ SFS concerns?

Read more political news.

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Rappa offers advice on making the most of the FETF grants, and provides a list of its eligible products.

What to consider

Eligible items: The grant supports a predefined list of items – these typically include livestock handling equipment, precision farming tools, robotic systems, slurry management equipment, and low-emission spreading equipment.

Some items must meet certain standards so ensure the model you choose qualifies. For example, if your mobile yard is not certified road legal, your grant funding will be refused.

Funding limits: The grant usually has a minimum value and a maximum cap per application or applicant and the fund typically covers a percentage of the item cost.

Applicant eligibility: Farmers, horticulturalists and contractors in England are eligible to apply – there are specific rules for each. You may need a rural business with a farm holding number or SBI (Single Business Identifier) to apply.

Application process: Applications are made through the DEFRA online portal. Be aware of deadlines – the current FETF round application deadline is 10th July 2025. Applications are scored on value for money, environmental benefit, and innovation.

Environmental objectives: Grants often prioritise equipment that reduces environmental impact (e.g. improves soil health, reduces ammonia emissions, or increases resource efficiency).

Quotes and supporting information: Some schemes don’t need quotes at application but may require them at payment stage. You should keep detailed records, including invoices, photographs and serial numbers.

Aftercare and conditions: You must use the equipment on your farm/business for a minimum period (e.g. five years). Be prepared for DEFRA or RPA inspections to ensure compliance.

Eligible products

The following Rappa products are listed as eligible under the FETF grant scheme.

FETF69: Mobile Sheep Handling Systems – Claim £4,880: Rappa Series 10 Standard, Super or Series 12 Tiltbed mobile yards are easy to set up with a modular design to expand with your flock. Rappa’s yards are built to suit your individual requirements, personally delivered and fully road legal.

FETF71: Sheep Handler – Claim £1,690: The Rappa RaceGrip is designed to work alongside Rappa’s mobile yard and allows for easy dagging, vaccinating, tagging and drenching. The double-grip mechanism requires no manual adjustment; the scissor-action panels automatically adapt to the animal’s size, including lambs.

FETF57: Electronic WeighCrate for Sheep – Claim £1,270: For simple weighing consider Rappa’s RaceWeigh. Working with a Rappa handing system, the RaceWeigh offers three-way drafting for fast stock sorting. The flared and railed gates, anti-jump bar and quiet operation encourage steady sheep flow.

Or for a stand-alone option, the WeighCrate may be right for you, Rappa says. It easily fits into any Rappa mobile yard or works within a fixed setting. The WeighCrate offers three-way drafting and two built in load bars for super accurate weighing.

FETF70: Fixed Sheep Handling System – Claim £2,525: Rappa’s new Fixed Yard Package is a robust system that offers simple solo operation and three-way drafting. The package includes everything you need for a static handling system, including: a Rappa StaticBase, 8ft panels, 7ft aluminium hurdles and three types of gate.

FETF82SH: EID Handheld Device – Claim £318: Essential technology for monitoring and recording livestock is also available. Rappa’s high-quality Stick Reader makes capturing a range of data quick and easy – helping you to make crucial decisions about your livestock’s health.

FETF80SH: Weigh Bars for livestock less than 300kg – Claim £550: Rappa’s available Load Bars work with Rappa weighing systems to provide the most accurate recordings. All Rappa models and specifications match what is approved in the grant guidance.

Application requirements

Rappa says it will provide quotes and invoices with clear descriptions. The company’s documentation includes: Full product details, proof of road legality, supplier information and clear pricing breakdown.

Note application opening and closing dates and consider lead times for delivery – Rappa says it will fulfil all orders within a grant-specified window – don’t wait to get in touch.

In the application, Rappa advises emphasising how its equipment improves animal health and welfare, enhances grazing efficiency and reduces labour or input costs. You may need to justify the impact in your application. Rappa says it can help you with this – all Rappa eligible products meet these criteria.

After grant approval, keep all receipts, records and take photographs – you’ll need these for your grant claim submission. Make sure to pay for and install the equipment within the claim deadline.

Rappa offers a free grant consultation service for its products to ensure you have a worry-free application. If you have any questions, get in touch with the UK-based team directly and they will help you with your application.

Last chance: Applications in England close at midday on Thursday 10th July.

Read more livestock news.

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From seed-planting robots which decrease costs to pesticide spreaders that help reduce chemical use or slurry separator systems which bring down reliance on expensive fertilisers, the grants will enable farmers to cut costs while increasing efficiency and sustainability, DEFRA explained.

The £46.7m Farming Equipment and Technology Fund (FETF) will support farmers with three types of grants, worth up to £25,000 each, to invest in day-to-day equipment to boost productivity, manage slurry or improve animal health and welfare.

Applications are open now and will close at midday on Thursday, 10th July.

Productivity, slurry management, animal health and welfare

The fund is split into three themes: productivity, slurry management, as well as animal health and welfare.

Farmers, growers, foresters and related contractors can apply for grants between £1,000 and £25,000 per theme. They can apply under more than one.

DEFRA has shared a list of examples of what is available:

• Productivity: you could apply for a direct drill, robotic or camera-guided inter-row hoes, or equipment to help with more precise crop management.

• Slurry management: eligible items include slurry separators, dribble bars, and robotic slurry pushers that help with low-emission spreading and better storage.

• Animal health and welfare: there is support for things like mobile sheep handling units, cattle squeeze crushes, or even static cow brushes to improve livestock welfare.

Each theme has a full list of equipment farmers can choose from, with fixed grant amounts. The percentage of the cost covered varies by item, but most are around 40% to 50%.

Read DEFRA’s guidance before applying.

READ MORE: FETF: DEFRA rolls out £50 million equipment and technology grants 

Read more farm business news.

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Miss Wallis, head of environmental services at Hutchinsons, reminds growers they will only be able to apply for this reopened offer if they were part of one of the three exception groups previously announced by DEFRA.

“This includes anyone who was in an SFI Pilot Scheme, had previously reported system issues or had started but not submitted an SFI application (application generated in the RPA portal between 12th January 2025 and 11th March 2025).

“If you identify as a grower eligible for the reopened offer, you will be able to log in and complete that application when the window reopens in the RPA portal from 12 noon on the 7th July. The application window will last for six weeks from the 7th July, closing at 11.59pm on the 18th August,” she explained.

However, Miss Wallis pointed out that unless you are one of the ex-pilot agreement holders, whose applications will be uncapped within the details provided by the RPA, those falling into the ‘started but not submitted’ category will see applications capped at £9,300 per agreement, with only one agreement permitted per SBI number.

“Any applications submitted over this figure will be rejected by the RPA, so it is really important to plan now and get it right.”

DEFRA’s apology

In May, minister of state at the department for environment, food and rural affairs, Daniel Zeichner, made a statement, apologising for the confusion that has left many farmers worried about their financial future. 

He said: “Earlier this year, the government had successfully allocated the entire SFI budget and could therefore no longer accept new applications for the scheme. 

“There are more than 37,000 live SFI agreements currently in place, under which money continues to be paid to farmers this year and over future years. However, an error was made when the current scheme was closed to new applications, the budget having been allocated. 

“I was not aware that people who had started an application and then saved it without submitting had been shown a ‘we’ve saved your application’ screen containing two messages.” 

The messages read: 

(a) “If we need to close applications, we will give you 6 weeks’ notice. We will publicise this information on gov.uk and email you.”  

Defra said that this message was shown “in error” due to a technical issue which meant that the message was carried over unintentionally from the online application used for the SFI 2023 offer. 

(b) “Your application will be available for 2 months for you to continue. If you have not submitted your application by then, we will delete it.”  

This message was intentional, Defra confirmed. 

MP Zeichner continued: “The first message should not have been included, and I apologise for the confusion it caused.”

READ MORE: Defra retracts SFI closure for thousands of farmers

READ MORE: Farmers ‘betrayed again’ as Defra stops SFI applications 

What if you are not eligible for the reopened SFI offer?

Those who had yet to apply to any environmental scheme when the closure was announced, understandably, will feel frustrated, acknowledged Miss Wallis.

“DEFRA’s abrupt closure of the SFI for new applicants left many feeling let down. But the key message is that all is not lost.

“We know there is a budget for future agri-environment schemes and expect further detail on this over the summer months for applications in 2026,” she added.

Miss Wallis said that the important thing for now is to prepare. “Ensure your land is registered correctly to the right SBI number, including the correct land covers. As we rapidly approach harvest and planning for the 2026 harvest, consider which actions could work well in your rotation.

“Good husbandry and planning now will make life much easier when new opportunities become available,” she advised.

For those who are already signed up and settled into a scheme, be that Countryside Stewardship or the SFI, the expert encourages taking stock.

“Now is the perfect time to review rotations and plans, ensuring that schemes are delivering what they were intended to. Whilst CSS agreements offer less flexibility, the beauty of SFI agreements is they allow for flexibility—adjustments can be made within the agreement to ensure the scheme works effectively on your farm.”

Hutchinsons’ head of environmental services recommended speaking to an agronomist or specialist environmental advisor to review options, stressing that proactive planning now will pay dividends in the long term.

‘Don’t lose hope’

Despite the overall budget reduction for environmental schemes, Miss Wallis highlighted the government’s continued commitment to promoting sustainable farming.

“Of course, the devil will be in the detail regarding how funds are divided between Countryside Stewardship, the reformed SFI 2026 offer, and productivity schemes such as grants for Farming Equipment and Technology Fund.”

But her parting message is clear and optimistic: “Don’t lose hope. There is still time to plan and prepare. If you’re not already in a scheme, getting your house in order now will ensure you’re at the front of the queue when new schemes open up.

“Time invested now will pay dividends for your farm and for the environment.”

For further information or advice, please contact your local Hutchinsons environmental specialist.

Read more farm business news.

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The offer funds a wide range of on-farm projects, from tree planting and flood prevention to improved slurry storage and water filtration.

DEFRA confirmed that last year alone, capital grants helped plant over 4,000 miles of hedgerows and upgrade slurry systems to keep rivers clean. 

Environment secretary Steve Reed said: “British farmers work tirelessly to feed the nation and look after our countryside. This major investment will give them the tools to cut pollution, restore nature, and grow their businesses.” 

Four new items added

Under the new round of the capital grants offer, farmers and land managers are able to apply for a total of 78 items, ranging from supporting natural flood management projects to improving water quality on farms.

Four new items have been added, including assessing woodland condition, creating wildfire management plans, repairing drystone walls and hosting educational visits.   

Changes are also being introduced to ensure that more farm businesses can access these grants – making it fairer for farmers by setting funding limits that maximise the number of farms benefiting while enabling the department to manage budgets more effectively, DEFRA said.  

This includes funding limits to four of the six groups of capital items in this capital grants offer. An application can include items from each of the six groups. The funding limit for four of the groups is:    

• £25,000 maximum for each of the following three groups: water quality, air quality, and natural flood management  

• £35,000 maximum for the group covering boundaries, trees, and orchards. 

DEFRA has also promised to listen to feedback from farmers and use it to improve the offer ahead of the next round, which is planned to open in 2026.  

READ MORE: DEFRA criticised for sharp fall in delinked payments

READ MORE: DEFRA announces £30m boost to Higher Level Stewardship scheme payments

‘Farmers need confidence’

CLA president Victoria Vyvyan welcomed the launch of a new round of capital grants. She said that the news comes at a time when there are only a few schemes open for farmers to apply, especially in the wake of the Sustainable Farming Incentive abruptly closing. 

“The capital grants scheme was unexpectedly paused in the autumn, and farmers need confidence that this round will run smoothly. 

“It is pleasing to hear that four more items will soon be added to the capital grants offer, including accreditation for educational access visits and installing signs, and we encourage farmers to look closely at the options,” Ms Vyvyan concluded. 

READ MORE: DEFRA retracts SFI closure for thousands of farmers

Read more grants news. 

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Following the Spending Review last week, DEFRA has just released an overview of farming funding for the years between 2026 and 2029.

It has been announced that delinked Basic Payment Scheme (BPS) payments will be significantly cut next year.

DEFRA said that to maintain the overall farming budget and to increase investment in environmental land management, the government plans to “phase-out” delinked payments.

Its spokesperson added: “In line with our pledge to ensure that every penny of public money is spent as wisely as possible, the government is ending the era of payouts to large and wealthy landowners for simply owning land.

“These payments are based on past subsidies and do not provide value for money or support the environment.

“This will enable us to invest more in environmental schemes that will make a significant contribution to our Environment Act targets and will ensure that funding is targeted where it can have the greatest impact.

“By investing in nature, we help secure the foundations of long-term food security – including healthy soils, clean water and thriving ecosystems.”

DEFRA said that as the department continues to phase out direct payments, those who previously received the largest amounts have seen the biggest overall reductions since the start of the transition away from the EU system.

For delinked payments in 2026 and 2027:

• DEFRA plans to apply a 98% reduction to the first £30,000 of any delinked payment

• Any amount above £30,000 will be reduced by 100%.

‘Unwelcome’ cuts

Country Land and Business Association (CLA) experts explained that this year’s delinked payments were £330 million capped at £7,300 per business, but next year the delinked payments will be £20 million capped at £600 per business.

CLA president Victoria Vyvyan said: “In the context of last week’s Spending Review the sharp fall in BPS payments was expected but is nonetheless unwelcome. It will hit especially hard those whose profit margins are now cut to the bone.

“While there might be a consolation that the new SFI 2026 scheme could be ready for applications in spring 2026, there is as yet no clarity on what that will look like and who will have access to it.”

Ms Vyvyan added that the reduction in productivity investment over the next three years will also risk dampening investment at a time when businesses need to look at new technology and equipment to drive efficiencies and improve environmental sustainability.

DEFRA’s reformed schemes

DEFRA also announced that a “record” 50,000 farm businesses are now taking part in environmental land management schemes. Around half of all farmed land in England is now managed under these schemes.

A spokesperson for the department said: “As we have said, we will honour all existing SFI, Countryside Stewardship and Higher Level Stewardship agreements. We’ll also continue payments under previous agri-environment schemes until those agreements end.

“As ministers have said before, the reformed scheme will be more targeted to better meet priorities on food, farming and nature. More details will be published later this summer, but we know that for too long ELM schemes have been far too complicated, which is a problem that is compounded by the massive workloads that farmers across the country undertake.

“One of our key objectives is to ensure that the user experience of the schemes is prioritised, so that bureaucracy does not become a barrier between the schemes and these busy farmers.”

READ MORE: £100m cuts announced: ‘Farmers will need to do more with less’

‘Farmers need clarity’

NFU president Tom Bradshaw said that it is “positive” to see further detail from DEFRA on how the budget outlined in the Spending Review will be allocated. However, questions still remain about how farmers in England are going to deliver more for consumers with less, as investment in agriculture and nature recovery is combined.

“The increase in DEFRA’s Environmental Land Management schemes follows the rapid shift away from direct payments and will pay farmers for the public goods they deliver under these schemes. Farmers now urgently need clarity on the Sustainable Farming Incentive, which must be accessible to all farmers, to prevent ongoing cashflow pressures and ease a crisis of confidence.

“Continued investment in productivity and innovation is welcome. But to enable farmers to invest confidently in sustainability, the environment and animal health and welfare, we now need clear information on how these funds will be used.

“Farmers continue to sit at the heart of delivering the government’s ambitions, from boosting nature to ensuring food security. But it is also a long-term business, and further clarity from Defra must reflect that.”

READ MORE: Could you help Baroness Batters shape farm profitability review?

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The NFU said it is seeking clarity from Defra after The Guardian reported that sources from the department have confirmed that the Labour government will see its nature-friendly farming budget cut as part of the Spending Review, which is due to be announced by the Chancellor in June. 

The Spending Review, which belongs to the Treasury and is ultimately headed up by chancellor Rachel Reeves, sets out the government’s plans to tax and spend until around 2030. 

The NFU, alongside several key groups, has repeatedly voiced concerns over the impact any cuts to the farming budget would have on farmers’ ability to deliver key environmental targets. 

‘Another blow’ 

Responding to the news, NFU president Tom Bradshaw said: “If this story proves to be correct, it will be another blow, not just for farmers and growers, but for the viability of nature-friendly farming and for the environment. 
  
“Alongside numerous rural, environmental and nature groups, including the RSPB and National Trust, we have repeatedly called for the government to honour its commitments, with budget and partnership, to protect nature and restore habitats through agriculture. But, without funding, this will be the government giving up on its own environmental targets – targets which it relied on farmers to deliver.” 

Defra’s own data shows that, since it launched in 2022, the SFI has supported more than 37,000 farms to deliver healthier soils, cleaner water and more habitat for wildlife.  

This includes 75,000km of hedgerows that are being actively maintained, providing essential habitats for wildlife, improving carbon storage, and strengthening water management.   

READ MORE: Defra retracts SFI closure for thousands of farmers

Critical role in helping deliver for food, nature and climate 

Mr Bradshaw added: “Farming is resilient and innovative, but if promises from government that farmers would be partners in doing environmental good have been reneged on, it will leave farmers prioritising economic returns and balancing tough choices between farming the land as hard as they can just to make a living and continuing to focus on environmental works they have been proud to deliver. 

“If this is a move away from the principle of public money for public environmental goods towards a more socially focused policy, it is misjudged, because farms of all sizes have a critical role in helping deliver for food, nature and climate.” 

“We are seeking urgent clarity from Defra,” the NFU leader concluded. 

Between now and June, all departments will have to submit their budget requests to Treasury and negotiate with the Chancellor. 

The NFU said it will continue to ramp up its efforts in lobbying the Treasury and Defra to secure our priorities across any and all government spending and raising awareness about the importance of government investment in food security and farming businesses. 

READ MORE: FETF: Defra rolls out £50 million equipment and technology grants 

Read more political news. 

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From 1st January 2025, payment rates for 157 HLS options will rise, rewarding farmers already delivering for nature – particularly in uplands and other sensitive areas where they protect rare species, restore habitats, and maintain traditional countryside features.

HLS is a scheme under the Environmental Stewardship in England that provides funding to farmers and land managers to undertake more complex environmental management practices than Entry Level Stewardship (ELS).

HLS aims to deliver significant environmental benefits to high-priority areas, including wildlife conservation, landscape enhancement, and natural resource protection.

Defra said that this uplift recognises and rewards the vital role farmers play in restoring habitats and protecting England’s iconic landscapes.

READ MORE: What farming grants will be available in 2025?

‘Farmers’ essential role in protecting environment’

Farming minister Daniel Zeichner added: “Farmers are the backbone of our countryside, and they’re leading the charge to restore nature.

“This £30 million uplift in HLS payments recognises their essential role in protecting our environment – work that’s crucial for long-term food security, boosting productivity, and tackling climate change.

“By backing them with fairer rewards, we’re investing in a stronger and more sustainable future for British farming, helping to drive growth in rural communities as part of our Plan for Change.”

Payments will be automatically increased, landing from December 2025.

The government said it is committed to targeting public funds wisely, making farming more profitable and sustainable for decades to come as we deliver on the Plan for Change.

Read more farm business news.

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If successful, these grants contribute towards the purchase cost of the machines, helping farmers and growers to justify the investment and increase farm productivity.  

Kuhn’s Rowliner interrow hoe with Rowlink camera guidance and three of the small seed hoppers in the SH range all meet the requirements set by Defra, the manufacturer confirmed.  

Grants between £1,000 and £25,000 are available for single items within each theme – productivity, slurry management, animal health and welfare. The government said that £46.7m will be available across the three themes in a competitive process. 

The Kuhn machines are in the productivity theme, which is designed to improve farm efficiency and profitability. Of the 66 items available, funding items FETF7, 6m interrow hoe, and FETF207, air drill for establishing cover crops, are applicable. Both items are eligible for up to a 50% contribution to the purchase cost (capped at £25,000). 

Kuhn explained that its Rowliner interrow hoe with Rowlink camera guidance meets the requirements by using live camera imagery to distinguish between the row crop and weeds. The minimum 6m wide machine could secure the maximum funding, depending on the purchase price.  

READ MORE: FETF: Defra rolls out £50 million equipment and technology grants 

READ MORE: Animal health and welfare technology eligible for FETF grant

Justifying investments at tough time

Models in Kuhn’s SH range that comply are the SH402, SH4080 and SH600. Stipulations of the funding include electronic metering; models that can be mounted to various makes of cultivators or drills; sow small seeds for cover crops; a minimum of 300-litre hopper capacity; and a width of 3m or more.  

Edd Fanshawe, Kuhn’s arable product specialist, said that these grants could be ideal for farmers and growers to justify investments at a tough time. 

He added: “Any financial support towards purchasing a machine that can improve efficiencies, increase productivity, or allow greater flexibility is worth considering. The SH hoppers are popular additions to cultivators and drills to apply small seed crops in the same pass, reducing diesel use and releasing time for other jobs.” 

Applications for the FETF 2025 grants open on Thursday 29th May 2025, and will close at midday on Thursday 10th July 2025. 

READ MORE: Kuhn appoints Clapham Agricultural to its dealer network 

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The Investor Partnerships competition is part of Defra’s Farming Innovation Programme, delivered in collaboration with our partners, Innovate UK.

Defra said that the competition is unique because it combines public and private funding. It helps agri-tech businesses scale and commercialise innovations that are ready to be used on farms.

Through the ‘Investor Partner Pool’, grant funding from Defra is matched with equity investment from private investors in the pool.

The Investor Partner Pool includes more than 150 trusted investment organisations. These have been selected for their track record, expertise, and interest in backing innovative, high-growth businesses.

This model encourages private investment and supports the growth of UK agri-tech businesses, the government said.

Eligibility

To be eligible, you must be a micro, small or medium-sized business with an experimental technology close to market. You should be looking for late seed or Series A stage investment.

Defra said that eligible projects must:

• demonstrate clear benefits to farmers, growers and agricultural businesses in England.

• cost between £750,000 and £3,000,000.

• last up to 18 months.

• carry out all project work in the UK. 

Grant funding will cover:

• up to 45% for micro or small organisations.

• up to 35% for medium-sized organisations.

Application process

Applications open on Monday 2nd June 2025, and close on Wednesday 2nd July 2025.

To apply, you must:

• aim to finalise a late-stage innovation.

• show potential to grow and scale with investor support.

• set out a clear and coherent project plan that aligns with your business strategy.

• address a farm-focused challenge in areas such as livestock, plants, novel food production systems, or the bioeconomy of agroforestry.

Applications will be assessed by independent experts from business and academia.

If your project meets the threshold, you will be notified in early August. You will then have until December to agree on heads of terms with a lead investor, Defra explained.

Successful applicants will be notified after that.

You should apply through Innovate UK’s Innovation Funding Service.

READ MORE: What farming grants are coming up?

Learn more

Together with UKRI, Defra will hold a webinar and Q&A session on Thursday 5th June.

In the session, they will:

• explain the application process and what assessors are looking for.

• go over eligibility criteria and funding rules.

• give an overview of the Investor Partner Pool.

Sign up to attend the webinar. The webinar will be recorded for those who cannot attend it.

READ MORE: Defra retracts SFI closure for thousands of farmers

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