Government to increase Higher Level Stewardship payments and re-open Capital Grants Offer

• The government is increasing payment rates for those in existing Higher Level Stewardship agreements, which deliver nature recovery and habitat management.
• Popular ELM standalone Capital Grants offer worth £45m in 2025/26 will re-open in the summer. The 4,000 applications submitted in 2024 will proceed, and are worth £120m over their lifetime.
• £110 million investment in innovation, equipment and technology grants will support farmers to boost productivity.

Farmers and land managers who have been at the forefront of nature-friendly farming in England will see an uplift to Higher Level Stewardship payment rates, the government has announced today (Monday 24 February).

The increased payment rates, which will apply for agreement holders across a range of HLS options will provide a boost for farmers – often living and working in upland areas - who have been the pioneers of nature-friendly farming.

It will bolster support for farmers delivering high-quality environmental outcomes to maintain species-rich grasslands, managing our most important habitats and delivering a range of high-quality environmental outcomes.

In a further boost for nature recovery and the environment, the popular standalone ELM Capital Grants scheme will re-open in the summer, worth around £45 million in 2025/26.

The Rural Payments Agency is now processing the remaining 4,000 applications held when the scheme paused. These agreements will be worth £120 million over their lifetime.

We are also supporting farmers to improve productivity and protect the environment with a £110 million investment in equipment and technology grants.

The newly designed grant competitions launching this spring will focus on helping the sector transition to net zero and unlock opportunities from the Precision Breeding Act.

Minister for Food Security and Rural Affairs Daniel Zeichner said:

“This government’s focus is on ensuring farming becomes more profitable and businesses are viable for the future – delivering the long-term food security this country needs.

“Investing in innovation and technology will help farmers produce food more sustainably and profitably, and get the equipment they need to help their bottom line.

“And with nature being so crucial to long-term food security, we’re rewarding the pioneers of nature-friendly farming – including many upland farmers.”

Our £110 million investment in innovation, equipment, technology includes:

• The launch of one round of the Farming Equipment and Technology (FETF) Fund in the spring, providing grants of between £1,000 and £25,000.
• New Farming Innovation Programme (FIP) grants worth more than £42.5 million, including competitions focussed on unlocking the benefits of precision breeding and supporting the net zero transition.
• Our new ADOPT fund will provide £20 million of additional funding for farmer-led trials that bridge the gap between new technologies and their real-world application, giving farmers the confidence investments in tech will deliver the returns they need.

Alongside these grants, we are also extending the Farming in Protected Landscapes (FiPL) programme to continue to support and improve England’s most precious areas of natural beauty, and improving animal health and welfare through government funded vet visits.

Through the Animal Health and Welfare Pathway farmers will be able to apply for visits to cover every eligible species they have from this week, and from summer they will also be able to apply for a visit for every eligible herd or flock of the same species.

Additionally, the recruitment campaign for the Commissioner for Tenant Farming Sector role is now live. The Commissioner will encourage behaviour in the sector to meet standards set out in the Agricultural Landlord and Tenant Code of Practice for England.

As part of the government’s Plan for Change, we are delivering on the Government’s New Deal for Farmers, with the first steps set out by the Secretary of State at the Oxford Farming Conference.

We will work with the sector to boost profitability through fair competition across the supply chain, use planning reforms to support food production and monitor food currently bought in the public sector and where it is bought from.

We will help farmers diversify income streams and make additional money from selling surplus energy from solar panels and wind turbines by accelerating connections to the grid.

We are going further to develop a 25-year farming roadmap to make the sector more profitable in the decades to come.