How farmers can benefit from new Business Support schemes
By Chris Wright, Consultant and ARA specialist
The drive towards sustainable farming is opening up new grant funding opportunities for UK farmers.
One such initiative, the Business Support scheme, offers financial incentives to farmers who reduce their carbon emissions.
For agricultural businesses, this presents an opportunity not only to cut emissions but also to access direct funding of up to £60 per tonne of CO2e reduced.
However, working out if you are eligible and the application process can be quite tricky.
This is where expert financial and grant funding advice becomes invaluable.
How does the Business Support scheme work?
The scheme rewards farmers who take measurable steps to reduce carbon emissions on their farms. Eligible farmers can receive:
- Up to £60 per tonne of CO2e reduced annually
- 50 per cent of payments upfront to help fund the transition
- Maintenance payments for farms already emitting below the industry average
Unlike traditional carbon offset schemes, farmers retain ownership of their carbon reductions, meaning they do not need to sell credits or offset their reductions elsewhere.
Who is eligible?
To qualify for funding, farmers must meet specific eligibility criteria, including:
- Having control over the land they are applying for
- Not participating in carbon offset schemes
- Completing two key assessments within the last three months:
- Soil Association Exchange baseline
- Farm Carbon Toolkit assessment
Currently, the scheme is limited to arable farming, but it is expected to expand to other sectors in the future.
What are the benefits for farm businesses?
For agricultural businesses, this funding can provide:
- Financial support for sustainability improvements – The scheme offers upfront payments to help farms implement carbon reduction strategies without immediate financial strain.
- Flexibility in farm planning – Farmers can create customised emission reduction plans tailored to their farm’s needs.
- Stronger business relationships – Farmers must be linked to at least one participating company (as a supplier, tenant, or lending customer), opening up new partnership opportunities.
- Long-term sustainability and profitability – Farms that reduce emissions effectively may qualify for ongoing maintenance payments, ensuring continued financial benefits.
How can we help?
While the Business Support scheme offers financial incentives, the application process, eligibility criteria, and financial impact can be challenging.
We can help you with:
- Assessing eligibility – Ensuring that farms meet the requirements and identifying any necessary improvements before applying.
- Financial planning – Helping farmers understand the tax implications, funding allocation, and long-term financial benefits.
- Grant application support – Guiding farmers through the process of completing the necessary assessments and paperwork.
- Maximising additional funding – Identifying other grant schemes, subsidies, or tax reliefs that could complement this funding.
If you are looking to improve sustainability while securing financial support, the Business Support scheme presents an excellent opportunity.
However, ensuring eligibility, optimising financial benefits, and managing the application process correctly is key to success.
Need guidance on securing grant funding for your farm? Our team can help you navigate the process and maximise your financial opportunities.
Contact us today to discuss your funding options.