Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment he has made of the potential impact of the freeze on applications for grants on farmer confidence in the Sustainable Farming Incentive.

The Government fully recognises the importance of hedgerow creation and the contribution of the Capital Grants scheme. In 2024 the scheme supported agreements to plant over 4,000 miles of new hedgerows across England, creating essential habitats for at-risk species of birds and mammals.

In November 2024, we closed the Capital Grants scheme to new agreements following unprecedented demand. The Rural Payments Agency (RPA) received more applications from May to November 2024 than over the whole of the 2023-24 financial year. These applications were also worth more. The value of standalone capital applications received as of November 2024 was up 45% compared to the whole of the last financial year. This pattern risked unsustainable spending which would have impacted other schemes. The RPA has written to all farmers who have submitted or started an application to explain the position.

We are forecast to spend more on capital grants this financial year than ever before. This is only possible because we have allocated the largest ever budget for sustainable food production through the farming budget.

We currently are reviewing the Capital Grants offer to ensure funding goes further to improve outcomes for food security and nature conservation. We will provide an update shortly.