Farmers, land managers and foresters across England continue to make use of the opportunities available through Capital Grants 2026.
With a £225 million budget that is 50% larger than in 2025, the offer is helping more applicants invest in projects that benefit nature, improve water quality, enhance biodiversity and support sustainable land management.
Interest has remained consistently strong since the offer opened, reflecting the commitment of farmers, land managers and foresters to delivering benefits for nature and building a more resilient farming sector.
We said we would provide updates when 25%, 50% and 75% of the available budget were allocated.
We can confirm that 75% of the 2026 Capital Grants budget has been allocated.
Reaching this milestone demonstrates the continued popularity of the offer and the significant level of investment being made in environmental improvements across England.
If you plan to apply, we encourage you to submit your application as soon as possible. With a significant proportion of the available budget now allocated, funding is becoming more limited.
If you’re interested in learning more and applying:
- read the Capital Grants 2026 guidance on GOV.UK to explore the full range of available items and eligibility requirements
- use the Capital Grant Finder to identify the items that could work best for your farm, landholding or business
- watch our Capital Grants webinar for practical advice on making an application and getting the most from the offer.
- read our previous blog posts on the Capital Grants offer
We will blog again when the budget has been fully allocated.
This budget update relates solely to the Capital Grants 2026 offer. The capital grants available through the Countryside Stewardship Higher Tier (CSHT) offer are funded from a separate budget.
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7 comments
Comment by Rob Yorke posted on
It is good there is a strong demand for this diverse range of grants for capital works from livestock handling pens to 'leaky' dams, pedestrian deer gates, bird boxes and slurry management equipment.
My concern is these works are then implemented and monies claimed within the 3 year window. It would be useful to the see the final expenditure from the last round of small capital grants: otherwise the National Audit Office or Public Audit Committee might look askance as the value for money in actual delivery of these public funded benefits.
An uncomfortable enquiry, I know, though arguably best to query now than The Treasury restrict future capital grants funding rounds.
Best wishes, Rob Yorke
robyorke.co.uk
Comment by The Team posted on
Hi Rob,
We recently published a breakdown of expenditure by scheme: CS and SFI payments 2025 - GOV.UK: https://www.gov.uk/government/statistics/cs-and-sfi-payments-2025/cs-and-sfi-payments-2025
While this is not quite the same as expenditure from the most recent application round, as agreements can be claimed over a three-year period, it does show the amount paid out during 2025 under the Capital Grants offer. This includes payments relating to agreements made between 2022 and 2025.
We hope this is helpful.
Kind regards,
The Team
Comment by Rob Yorke posted on
thank you 'The Team', it was, best Rob
Comment by Anon posted on
Dear RPA. Please could someone explain the rational behind only having FG1 and FG2 in water capital and not boundaries when you apply for the capital grant. It was expressed clearly and repeatedly in the webinar that FG1 and FG2 can be used to protect existing features such as hedgerows or for example a newly planted hedge. Please could someone explain therefore the logic behind when I applied for £25K of roofing under RP28, a water capital item to cover a livestock yard to reduce pollution and £5000 to plant a new hedge under the boundaries option (Max £35K) why I could not apply for either FG2 or FG1 to protect my new hedge under the boundaries option. It is only listed as a water capital item which i had already maxed out. I just can't understand the logic of this seeing as i had £30K of boundaries grant unused and the fencing was for a new hedge not protecting a watercourse.
Comment by Sarah Stewart posted on
Hello,
The items are grouped to align most closely with the purpose they are primarily intended to deliver.
For FG1 and FG2, that purpose is improving water quality. We appreciate that, in practice, fencing can provide wider benefits. However, for the purposes of the Capital Grants 2026 offer, it was assigned to water quality. and can only be applied for under that category.
They cannot be applied against the boundaries budget, even where funding remains available under the boundaries limit.
Best wishes,
The Team
Comment by Anonymous posted on
Does 'allocated' mean the online applications only, or online applications AND submitted supporting evidence e.g. maps?
Comment by Sarah Stewart posted on
Hi,
Thanks for getting in touch.
The figures are based on applications that have been submitted. Applicants have 10 working days after submission to send their supporting evidence to the RPA.
Best wishes,
Sarah