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On 24^th February, the Department for Environment, Food & Rural Affairs published an eagerly awaited update into rural grants and payments in 2026. One part of this was the Farming Equipment and Technology Fund (FETF), for which applications will open on 17^th March 2026.

The Fund will cover three themes, and businesses are able to apply for more than one grant for the items which suit their business:

1. Productivity – 40-50% of the average cost or actual cost of the item
2. Slurry management – 50% of the average cost or actual cost of the item
3. Animal health and welfare – 50% of the average cost or actual cost of the item

A full list of qualifying items and respective specifications under each theme can be found on the GOV.UK website here. A breakdown of how grants will be calculated, with examples, is also provided.

There is a single window for application to the FETF, opening on 17^th March 2026 and closing at midday on 28^th April 2026. Therefore, individuals should act efficiently and seek advice on capitalising from the benefits of the scheme in the best way for their business.

Those who are not yet signed up to the Rural Payments Agency will need to do so to receive their Single Business Identifier (SBI) number, which will be used to form the basis of claim and level of funding. Spotlight checks will be undertaken to assess financial viability of businesses that apply for grants.

Applications to each theme are capped to between £1,000 – £25,000, so clearly this will be more of a contribution fund from the RPA, and certainly is not a ‘get out of jail free’ card for large capital expenditure on farms, no matter the environmental benefits. Farmers, horticulturalists, and forestry owners (and contractors to the aforementioned) should therefore expect to take responsibility for the remaining amount of capital expenditure. 

Applicants have less than a month until the window opening. Defra has alluded that the FETF is competitive, meaning that securing a grant is by no means inevitable.

With spring drilling and fertiliser/spray applications fast approaching, this is possibly not the best-timed administration exercise for farmers across the country, although could prove vital for enterprises down the line.

Further publications are set to be released on Defra’s Farming Blog as we approach the application window, so do subscribe to receive notification emails as updates are made.

We will be happy to assist with any queries on this new offering, up to and during the application window.

Please contact Emma for more information.