Defra schemes: what land managers need to know about the latest updates

The delinked 2025 Basic Payment Scheme (BPS) payments began being issued on 1 August. The payment rates for 2026 and 2027 were confirmed in this Defra blog, with reference amounts below £30,000 being subject to a 98% cap. This effectively means that the maximum payments for any business in 2026 and 2027 will be £600.

A seven-year transition period scaling down BPS is a requirement under the Agriculture Act 2020.

The increased payment rates worth a combined £30m and announced in February 2025 were confirmed with agreement holders in late May. The payments will be received from December onwards with more information available to read here.

The CLA is working with Defra and other stakeholders on the future of this scheme. Following a period of industry consultation, Defra is now developing the details of the scheme following discussions with the minister. Key areas include budgetary control and value for money, so a greater level of targeting and some form of capping can be expected. Read more in the government blog here.

A Defra update on SFI is expected soon and the CLA will update when available.

In July, Defra announced that CSHT will open for applications in September 2025 for those who have been invited to take up mandatory pre-application advice and completed their preparatory work.

There have been rolling invitations for pre-application advice from Natural England and the Forestry Commission since January. This include existing agreements that expire in 2025, those with approved woodland management plan and applicants who have an approved agri-environment plan are ready to develop an application. Read more here.

Development work for round one and two projects continues and the signing of the first project implementation plan for a round one project in July 2025. Read more here.

A third round of the scheme is expected to launch in 2026.

The 2025 capital grant scheme opened on 3 July 2025 and closed on 1 August after receiving over 8,000 applications, these are expected to account for the full £150m budget. Application progress announcements were made at 50% and 75% of committed funding.  There were changes to the scheme with some new eligible items, but funding limits of £25,000 and £35,000 depending on activity. More information is available here.

There will be another round in 2026 which may have different scope and requirements.

Funding for other capital grants is still available for Woodland Management Plans, Higher Tier Capital Grants, Capital Grant Plans, Woodland Protection and Infrastructure grants and Woodland Tree Health grants.

The latest round of the Farming Equipment and Technology Fund (FETF) closed on 10 July, and progress is being made in allocating the £46.7m across three programmes for productivity equipment, slurry management, and equipment for animal health and welfare.

Round two of the Improving Farm Productivity (IFP) grant closed on 31July. It covered two themes – robotics and automation; and, solar energy – with a fund of £30m to be allocated.

The Calf Housing for Health and Welfare grant closed on 30 April, with a fund of £10m to be allocated.

Find out more about the FIF here.

Defra will announce future grant rounds for March 2026 onwards following a business planning process.

The Accelerating Development of Practices and Technologies (ADOPT) closed on 25 June. Further rounds are expected.

Recently closed funds include the Farming Futures R&D precision breeding competition, the Farming Futures R&D low emissions farming competition and the Defra Farming Innovation Investor Partnership competition. More details about the FIF can be found here.

The FIPL scheme, for which guidance can be found here, has been extended to March 2026, with an additional £30m allocated across National Parks and National Landscapes (formerly AONBs).

Defra is reviewing the future FIPL funding for March 2026 onwards.

The initiative continues with an animal health and welfare themed round of the FETF (see above), and the recent expansion of the Annual Health and Welfare Review to include endemic disease follow up.

From the end of May 2025, the review expanded to allow funding for multiple flocks of the same species. Learn more about this initiative here.

In autumn 2025 Defra plan to launch a consultation on mandatory vet visits, with more detail expected.