Defra Announces New Funding Opportunities for Farmers
This week has been a busy one for the Department for Environment, Food and Rural Affairs (Defra), with a series of announcements on agricultural support, culminating in Secretary of State for Environment, Food and Rural Affairs, the Rt Hon Emma Reynolds MP unveiling funding for farmer collaboration and farmer welfare at the Great Yorkshire Show.
Farming Innovation Programme (FIP)
Round five of the Feasibility Studies grant opened on 15 July 2026, for applications as part of the £15 million competition through the Farming Innovation Programme (FIP). This competition will test whether early-stage ideas can improve the productivity, sustainability and resilience of England's farms.
The grant will support projects with total costs of £200,000 to £500,000, and projects can last for up to two years. The scheme guidance sets out the full eligibility criteria, what projects must include, how applications will be assessed, and the information applicants need to provide.
Applications close on 9 September 2026.
Capital Grants Offer
The 2026 Capital Grants offer is expected to open on Thursday 30 July 2026 and will make available £225 million for three-year agreements. These agreements will provide funding for capital items that deliver specific environmental benefits, including improvements to boundaries, trees, orchards, water quality, air quality and natural flood management.
This round will close to applications once the available funding has been allocated. Defra has said it will aim to provide reasonable notice before the offer closes.
Ahead of the opening, Defra is hosting a webinar to help farmers prepare their applications. The webinar will take place on Wednesday 22 July from 14:00 to 15:30.
Farmer Collaboration Fund
Defra will launch the £30 million Farmer Collaboration Fund on 1 September 2026 to help farmers and land managers work together, share knowledge, reduce costs and build more resilient businesses.
The fund will support a range of activities, including local facilitators, new farmer groups and projects that strengthen farmers' ability to attract private investment.
Full guidance and eligibility details will be published in August.
Farmer Welfare Grant
Defra will also triple funding for farmer mental health and wellbeing support, providing £1.5 million over three years through the Farmer Welfare Grant.
Applications from farming charities will open on 6 August 2026.
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