A decision by Defra to suspend 76 capital grants has left farmers and growers in the lurch, industry leaders said last week.

The grants, which were offered to fund items such as tree planting, water management, and fencing, are said to be fundamental to improving farm infrastructure and enhancing biodiversity.

Many farmers had already begun planning around these schemes, and critics of the decision to suspend them said although existing agreements remain in place, uncertainty over future funding will harm progress on important projects.

Defra said the closure of the schemes is due to "unprecedented demand," and they will be prioritised "so they can be made available where they are most effective to build a sustainable farming sector". 

But National Sheep Association (NSA) chief executive Phil Stocker said: “This move comes at a critical time when sustainable farming and nature recovery demand urgent and sustained investment.

"The abrupt suspension of the capital grants is a further betrayal of commitments to support rural livelihoods and environmental stewardship. Farmers are the custodians of our landscapes and biodiversity.

"This withdrawal jeopardises their ability to deliver vital environmental benefits while maintaining food production. It undermines confidence in government support and sends the wrong message to those striving to achieve net-zero and sustainable farming goals."

NSA policy manager Emma Owen added: “The decision prioritises limited high-value areas like tree health while leaving large swathes of rural communities without necessary resources. This approach risks deepening regional inequalities and hindering efforts to address the climate crisis.

“NSA is calling for immediate clarity from Defra on future funding plans.”

Applications for grants that have been temporarily withdrawn will be on hold, with applicants to be contacted in early 2025 with information about what happens next, Defra said.

The NFU branded the move “a real blow” to members who are "relying on these grants to achieve their environmental ambitions".

Deputy president David Exwood said: “The messaging of this is confusing – farmers and growers are being asked to adopt measures to improve the environment but have been left in the lurch without access to the key grant schemes which will enable them to do this.

“With applications timed specifically to fit in with the farming year and enterprise activities, and no confirmation that all applications already in the system will progress, it’s incredibly frustrating and unhelpful that members will receive no further information until next year.

“The whole agricultural transition has lurched from one crisis to another. Only a month ago we were shocked to hear plans to accelerate the phaseout of direct payments, and this sudden decision has once again left farmers wondering how on earth they can plan for the future with these ever moving goalposts."

A Defra spokesperson said: “Over 60,000 agreements for our Environmental Land Management Schemes are now live and we will continue to evolve and improve them to support farmers, sustainable food production and nature recovery.

“As a result of unprecedented demand some of the capital grants offer for farmers will temporarily close to new applications. Agreements that have already been signed will be met, with further funding prioritised to help build a sustainable farming sector."

The RPA will continue to accept new applications for woodland tree health grants, capital grant plans and management plans, protection and infrastructure grants, and Higher Tier capital grants.

This article originally appeared in our sister title, the Northern Farmer.