DEFRA GRANTS FOR CAPITAL PROJECTS AND FARM EQUIPMENT
£50m is available across 3 themes for the Farming Equipment and Technology Fund, with a further £225m for eligible capital grants.
Farming Equipment and Technology Fund (FETF)
The Farming Equipment and Technology Fund (FETF) 2026 grant is designed to help invest in equipment and technology for farm businesses, by supporting farmers, growers, foresters and contractors to buy equipment and technology that improves productivity, animal health and welfare, and slurry management.
This year, £50 million is available across 3 themes:
- Productivity equipment (£20 million available)
- Animal health and welfare (£20 million available)
- Slurry management (£10 million available)
Applications can be made for grants between £1,000 and £25,000 per theme, with a maximum of £75,000 available if you apply across all 3 themes. The application window is open for 6 weeks and closes at midday on 28 April 2026.
The FETF 2026 guidance is available on GOV.UK. It includes details on eligibility, how to apply, and links to the lists of items under each theme.
This will be the final standalone round of FETF in its current form. From 2027, DEFRA plans to build on what has worked well across its grant schemes by bringing the strongest elements together, simplifying the application process and making it easier for farmers to access funding.
More information on the 2026 FETF grant offer is available at: FETF 2026: apply now for equipment and technology grants – The Farming Blog
Capital Grants
£225 million will be available to support farmers, land managers and rural businesses to deliver environmental improvements across England in 2026 through the Capital Grants offer.
When the offer opens in July, Capital Grants will fund a range of items from hedgerow and tree planting through to works that improve water quality. The list of items which can be funded is currently being finalised, but farmers are urged to start preparing now, so that once the full list is published in May alongside the guidance, they can start to prepare an application.
In the same way as in 2025, the items supported by the grants will be organised into groups:
- Boundaries, trees and orchards
- Water quality
- Air quality
- Natural flood management
- Assessments
- Improvements
Funding limits will continue to apply to 4 of the 6 groups in the offer:
- £25,000 for the water quality, air quality, and natural flood management groups
- £35,000 for the boundaries, trees and orchards group.
Each application can include items from these groups up to the limit, plus items from the assessments or improvements group.
More information on the capital grants offer is available at: The 2026 Capital Grants offer – The Farming Blog