Written by: Evie Price, Head of Stewardship & Grants at CXCS
Guidance for the 2026 Capital Grants offer in England is now available on GOV.UK, setting out the full details of this year’s scheme ahead of applications opening in July.
This year’s scheme builds on previous rounds, with a continued focus on supporting practical, on-the-ground environmental improvements across farmed landscapes. Early awareness of the updates and requirements will be key to submitting a strong and complete application when the window opens.
This summary has been prepared by Evie Price at CXCS, to highlight the key points of the 2026 Capital Grants scheme and help farmers prepare ahead of applications opening in July.
Key overview of the 2026 Capital Grants scheme
Through Capital Grants 2026, a total of £225 million will be available to support farmers, land managers and rural businesses to deliver environmental improvements across England.
Applications are expected to open in July 2026, with strong demand anticipated once again.
The scheme continues to fund capital works that support:
- Hedgerow and boundary creation and restoration
- Tree planting and orchards
- Water and air quality improvements
- Natural flood management
- Environmental assessments and practical land improvements
How the scheme is structured
As in previous years, eligible items are grouped into six categories:
- Boundaries, trees and orchards
- Improved water quality
- Improved air quality
- Natural flood management
- Assessments
- Improvements
Funding caps will continue to apply to four of the groups:
- Up to £25,000 for water quality, air quality, and natural flood management
- Up to £35,000 for boundaries, trees and orchards
Each application can include a combination of items, up to the relevant limits, alongside assessment and improvement items.
As before, applicants can submit one application per Single Business Identifier (SBI).
What’s changing in 2026
There are a few important updates to be aware of this year:
- Agroforestry items and the woodland condition assessment will not be available under Capital Grants 2026
- These will instead move into the Higher Tier Capital Grants offer later in the year
- One item has been withdrawn:
- TE6 (Tree guard – tube and mesh)
- This will be replaced with a new item:
- TE19 (Tree guard – narrow weld mesh)
- Names and specifications for tree guard items TE7 and TE8 will also be updated when the scheme opens
Evidence requirements: stronger focus for 2026
This year places greater emphasis on submitting complete applications upfront, including all required evidence.
This follows issues in previous rounds where missing evidence led to delays, follow-ups, and in some cases rejected applications.
What to prepare in advance
You should ensure:
- Business and SBI details are fully up to date with the Rural Payments Agency (RPA)
- Land parcels are correctly mapped in the Rural Payments Service
- Any completed capital works under existing agreements are properly claimed and closed where relevant
- You can demonstrate financial readiness where applications exceed £50,000
Where required, financial evidence must be provided as a letter from a qualified accountant confirming sufficient funds (profits, reserves or loans) to deliver the works.
Catchment Sensitive Farming support
Catchment Sensitive Farming (CSF) advisers have supported a large number of farmers ahead of the 2026 round.
However, CSF teams are currently prioritising existing requests and will not be able to take on new advisory visits for this round at this stage, though further visits will be available later in the year.
Farmers can still access CSF support through scheduled events and future advisory availability.
Tenant farmers and permissions
If you are a tenant, you may need landlord consent depending on your tenancy agreement.
Where a tenancy does not last at least five years from the start of the agreement, a landlord countersignature will be required.
Historic or environmental constraints
Some items may require additional evidence or consents, particularly where works affect historic or archaeological features.
Applicants should check their Historic Environment Farm Environment Record (HEFER) and seek consent from relevant bodies such as Historic England where required.
Final note
Capital Grants continue to play a key role in supporting environmental improvements across England’s farmed landscape.
With strong demand expected again this year, early preparation will be essential to ensure applications are complete and ready when the scheme opens in July, as the offer will close once funding has been fully allocated.
Further help & advice
For further help and advice, please contact our Stewardship & Grants team on 01981 590514.