Four things for land managers to consider in the 2026 capital grants offer
As a guide for farmers and rural land managers, CLA Land Use Policy Adviser Anna Novis provides helpful advice on applying for this year’s round of capital grants
The 2026 capital grants will open in July, with the exact date being confirmed in due course, and the CLA welcomes the £225m available this year to support environmental improvements across England.
While the offer is a 50% increase in budget compared to 2025, it is likely to be another competitive year for applicants. This blog highlights the key capital grants changes and the practical steps that CLA members should take now to prepare for when the application window opens.
What it will fund
The full list of available items and guidance will be published in May, ahead of the application window opening in July.
Capital grants will continue to support a broad range of environmental works – from tree planting and hedgerow restoration to interventions improving water and air quality. Items will again be grouped into six categories:
- Boundaries, trees and orchards
- Water quality
- Air quality
- Natural flood management
- Assessments
- Improvements
Funding limits remain unchanged from 2025 and continue to apply to four of the above categories:
- £25,000 for water quality
- £25,000 for air quality
- £25,000 for natural flood management
- £35,000 for boundaries, trees and orchards
Applicants can combine items from within these limits, plus any items from assessments or improvements. Only one application per SBI is allowed again this year.
High demand expected
Demand exceeded expectations last year and some applicants missed out, despite Defra publishing updates when 50% and 75% of funding had been allocated. The same allocation announcements will be published this year, but given applications continue to be assessed on a first-come, first-served basis, preparing a complete, well‑evidenced application that can be submitted early on once the application window opens is highly recommended.
1. A key change for 2026: stronger rules on submitting evidence upfront
Missing evidence caused significant delays in 2025, and some applications were rejected. For 2026, providing complete evidence at the point of application is more important than ever.
Common evidence types members should prepare now include:
- Claiming for completed works - ensure any completed Countryside Stewardship capital works have been claimed for and marked as final where appropriate. This releases the land parcels for new applications
- Rural Payments Agency (RPA) registration and business details - check your business is registered and all details are up to date, including confirming land parcels are correctly mapped
- Accurate maps - ensure mapping is correct, particularly where showing locations of proposed works, historic features, or woodland assessment areas
- Evidence of sufficient funds for applications over £50,000 - if your application exceeds £50,000, you must provide an accountant’s letter confirming adequate funds are available to cash‑flow the work
- Evidence for items requiring Catchment Sensitive Farming (CSF) advice (detailed further below)
2. Items requiring Catchment Sensitive Farming support
Applications for any of the 24 items listed in this Defra blog require CSF support. This includes items relating to ammonia reduction, yard infrastructure, drainage, tanks, washdown areas, sheep dip improvements, leaky dams and tree planting/tree shelters.
CSF advisers seem to be at capacity for this round, so only existing requests are being prioritised. Advice received within the last two years is valid for the 2026 application.
3. Requirements for tenants
Tenants must ensure they have the correct permissions. If a tenancy does not last at least five years from the agreement start date, applicants must provide a landlord countersignature.
4. Additional evidence requirements
Some items require extra evidence such as Historic England consents for works on historic or archaeological sites. Check your Historic Environment Farm Environment Record (HEFER) to see if you have any features that may require advice or consent.
The evidence requirements for each item can also be viewed on the capital grant finder.
In conclusion
Preparing early will give you the best chance of submitting a valid and competitive application when the window opens in July.
If you have any questions, please contact Anna Novis on anna.novis@cla.org.uk.
