Government grants and subsidies available to farmers

By Andrew Heskin, Partner and ARA specialist

With the news that poor weather is leading to a downturn in income for many farmers across the UK, now is the time for operators within the sector to plan ahead and manage cash flow.

One of the ways that this can be achieved is through a number of grants and subsidies available to the agricultural sector, designed to support crucial activities during periods of financial difficulty.

Additionally, financial aid may be available to your business in order to promote sustainability, enhance productivity and help businesses plan for future downturns.

Andrew Heskin, Partner at Moore Thompson, takes a look at some of the available schemes and how they can be used to support the agricultural sector.

Countryside Stewardship

The Countryside Stewardship Scheme provides financial incentives for farmers and other land managers to look after and improve the environment through the land they manage.

This includes funding for specific projects aimed at boosting biodiversity, creating new habitats, and conserving existing woodland and landscapes. There are eight grants in total under the scheme:

• Capital Grants (and Higher Tier) – Three-year agreements on capital items to achieve environmental benefits for trees and orchards, water and air quality or natural flood management.
• Protection and Infrastructure grants – For capital items which enhance woodland management and beaver behaviour.
• Woodland Management Plan (WMP) grants – A one-off capital grant to create a 10-tear woodland management plan.
• Woodland Tree Health (WTH) grants – To support woodland improvement following tree health problems.
• The Facilitation Fund – Financial support for those bringing together groups of land managers to improve local environmental outcomes.
• Implementation Plan and Feasibility Study grants – Funding for the most complex projects, which must be reviewed by a Natural England adviser.
• Higher Tier – Capital and management grants for the most environmentally important sites which require complex management.
• Mid Tier and Wildlife Offers – Multi-year management grants aimed at improving biodiversity, air and water quality and natural flood management.

Applications usually involve detailed environmental assessments and can be competitive.

Delinked payments

If you were claimant under the Basic Payment Scheme (BPS) in the 2023 scheme year, then you may be eligible to claim delinked payments between 2024 and 2027.

You will also need a ‘reference amount’, calculated using your payment information from 2020 to 2022.

Farming Investment Fund (FIF)

The FIF covers a number of grants designed to revolutionise working practices within the sector, including:

• Water Management
• Slurry Infrastructure
• Calf Housing for Health and Welfare
• Improving Farm Productivity

Each grant has its own application and eligibility requirements, so make sure you get advice on the most suitable scheme for your business.

Farming Equipment and Technology Fund

Part of the FIF and comprising three grants, the Farming Equipment and Technology Fund (FETF) is designed to help farmers access cutting-edge technology to improve efficiency, enhance animal health and welfare, manage slurry and reduce labour costs.

Grants are available for a percentage of the cost of new equipment and technology, such as robotic systems and advanced software for precision farming.

The aim is to make British farming more efficient and sustainable, while also preparing for future challenges.

Maximising the benefits of Government funding

Government funding for farming and agriculture is designed to support this critical sector and encourage growth and innovation in the future.

To maximise the benefits you receive from these opportunities, you should:

• Stay informed – Keeping up to date with changes in subsidy schemes and application windows is critical.
• Keep records – As many grants require detailed reporting and documentation.
• Seek advice – Consult with an accountant with expertise in this sector who can offer insights specific to your business needs.
• Plan ahead – Long-term planning can enhance your eligibility for certain grants and ensure you meet sustainability and environmental targets required by subsidy schemes.

Government grants and subsidies are pivotal in supporting the agricultural sector.

By taking full advantage of these opportunities, you can secure funding that facilitates innovation and boosts your operations in the long term.

For advice on grants for the agricultural sector and financing your business, please contact our specialist team today.