Farmers urged to engage early ahead of new agri-environment scheme launches

During a turbulent period for agri-environment policy in England, farmers and landowners are advised to engage early with the application processes for Defra’s limited grant schemes or risk losing out.

Funding caps and competition for smaller pots of cash have seen the application window for some schemes closing after less than a month.

Sebastian Young, Brown&Co environmental consultant based at the Norwich office, says early engagement is therefore vital.

November 27th 2025 is an important date for holders of Countryside Stewardship (CS) scheme agreements due to expire at the end of this year. 

In October, after a period of intense lobbying by the NFU, Defra agreed that farmers would get a one-year reprieve on their CS Mid Tier agreements, allowing businesses utilising nature-friendly practices such as nurturing species-rich grassland and creating habitats for farmland birds to continue.

During a recent podcast with Brown&Co agri-business consultant, Olivia Burfort, Sebastian said farmers would be receiving offers with a deadline of 27 November to accept, but added: “It is not set in stone that you have to accept.’’

The agreement terms will be unchanged from the static non-rotational options therefore claims can be submitted in the usual way for the May deadline.

“Rotationals can still be edited and changed up to the end of August as has been the case in the previous five years,’’ Sebastian explained.

It is important to consider however that it is only a one-year extension - it doesn’t offer farmers the historical blanket five-year funding stream and they will therefore need to consider how it might be replaced. 

“These extensions will end in December 2026 so unless there is another extension there is no telling what could come next,’’ said Sebastian.

One scheme will be the Sustainable Farming Incentive (SFI) 2026 which is coming down the tracks in some guise.

“While we have got the buffer of the CS extension we need to consider that new schemes will be released,’’ said Sebastian.

“We will see an SFI in some form and that replacement should be considered because the CS extension is only for a one-year term.’’

Land will be locked up in CS for another year therefore plans for applying for new schemes will need to be delayed for those 12 months as agreement holders are still barred from, for example, rolling over a higher value grassland parcel into a new scheme. 

“Consideration needs to be given to this too,’’ Sebastian pointed out.

Payment rates for Higher Level Stewardship (HLS) have recently increased so should farmers with those agreements apply for CS Higher Tier or maintain their current agreement?

“If you already have an agreement in place you are guaranteed income if you maintain the agreement’s requirements without the possibility that if you plump for a CS Higher Tier that land can’t be in receipt of any environmental payment in order to be pipelined,’’ Sebastian advised.

“You would have to take your existing agreement fully out of environmental payment and cease that current agreement, depending on the land area you want to put in, and this could jeopardise those current payments with no absolute guarantee that you will be accepted into CS Higher Tier as it is invite-only, area specific and, at this early stage, very, very targeted.

“It is fundamentally important to consult with Brown&Co consultants and really evaluate what the payment uplift might be against the pay-off, what the issues could be in the process, and really weigh these up.’’

Capital grants going forward will also be budget constrained and staggered.

The latest round opened on 3 July 2025 but a high level of competition for the £150m funding pot saw it close as early as 1 August.

That experience highlighted the importance of early consultation with experts and having a plan in place.

“By understanding exactly what you are going to do, when these things open and everybody is set to press go you are also in the line to do that as well,’’ said Sebastian.

He also expects these grants to be capped. “For things like concrete yard renewal, whereas previously it might have meant a brand new yard, it’s now capped at £25,000 so that also needs to be considered when planning these things.’’

Another scheme that is closing, but not until 31 March 2026, is the flagship England Woodland Creation Offer (EWCO) which supports the establishment of new woodland.

Unlike other Defra schemes, EWCO is fully administered by the Forestry Commission.

It is closing because it is set to become part of the Landscape Recovery scheme going forward.

Whereas EWCO allows tailored woodland agreements on a farm by farm basis with areas as small as 1ha considered, the transition to Landscape Recovery will mean that some farmers could be bypassed.

“If you are not in a certain swathe of land you might not be first in the queue, therefore if you at looking at woodland planting, while the EWCO application window is still open then go for it,’’ Sebastian recommended.

New woodland can include natural colonisation therefore if a site has this potential it won’t necessarily necessitate full-scale planting. 

“Cost wise, if a site has potential it could be earmarked in a different way in consultation with the Forestry Commission which is something we can administer and organise site visits,’’ said Sebastian.

EWCO offers £10,200/ha for new planting and, for associated capital items such as deer fencing, there is up to £12,700/ha in stackable options, depending on the site.

If the site is close to people, there are payments for access and funding on offer for measures such as protecting water quality and for flood alleviation.

Sebastian advised delving down into the site’s potential and gaining the maximum from it.

“Once you have developed your woodland the payments don’t stop there as there are 15 years of maintenance payments at £400/ha available so this could be a lucrative scheme for maybe an area of land where you are not going to get in there for production, earmarking it for alternative use might be the best use for that land.’’

Carbon is another environmental option that offers the potential for an income stream but Sebastian said this is a slightly trickier area because there is no designated scheme to apply for. 

“It is probably one to consider more if you are going for wholesale farm changes, perhaps a change in practice to regenerative agriculture, and establishing a baseline from that and what credits that might generate.’’

Speculative figures value credits at about £40 each but, as Sebastian pointed out: “The amount generated and how you might sell those credits going forward will really depend on the change in approach that you are going to be undertaking.’’