The Government has confirmed all £150 million of the latest round of Capital Grants funding has now been allocated and the fund has now closed to applications.
Over 8,000 applications were submitted in under 5 weeks in the fastest uptake ever for the offer.
The Government said that having funding thresholds in place for this round meant more farmers had been able to access help to support their efforts to deliver for nature than in previous years.
Grant funding
Grants for reducing farming's impact on water quality have proved to be the most popular, including upgrades to yard proofing to reduce agricultural runoff and fencing to keep livestock out of water courses.
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Farming Minister Daniel Zeichner said: "I am delighted to see such strong demand in our Capital Grants offer, and strong momentum behind nature-friendly farming.
"We know that for farm businesses to thrive, they need to be profitable, and we will ensure that every penny of the budget reaches farmers as part of the government's Plan for Change."
Following criticism over previous communications and sudden closures of funding, Defra said it had taken a new approach and published updates when key milestones for uptake were reached, including at 50%, and 75% and advised the fund would close as soon as all funding was allocated.
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Applicants whose application has been approved, will receive their money once the work has concluded and they have submitted claim for payment.
Defra said the Countryside Stewardship Higher Tier scheme will open for applications in September to those who have been invited to apply and there will be an update on the Sustainable Farming Incentive reformed offer.
NFU deputy president David Exwood said: "We recognise the Capital Grants scheme budget is limited and now fully allocated. In the past, transparency has been entirely lacking and we have long called for clearer communication to help farmers and growers plan. On that basis the recent timely updates from Defra have been welcome and must continue going forward.
"The strong uptake within the scheme again highlights farmers' commitment to sustainability and their willingness to invest in delivering environmental benefits, despite the challenges facing the industry.
"It is now vital we understand how the RPA plans to deal with applications that couldn't be processed due to outdated records.
"We look forward to continuing to work with Defra to shape the 2026 Capital Grants offer."
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