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Part of Defra’s Rural Development Programme for England (RDPE), the Farming and Forestry Improvement Scheme will award grants of up to £25,000 to farmers for investment in ‘green’ projects and new machinery to make their enterprises more sustainable. The scheme was unveiled by Jim Paice at Harper Adams University College, Shropshire this morning.

The grants will only cover a maximum of half the total cost of a project in uplands areas and 40 per cent elsewhere; Defra said the grants would also be subject to applicants meeting certain conditions. The department said the projects must result in energy being saved or carbon emissions reduced; examples of eligible projects are better use of manure to reduce dependence on artificial fertilisers, initiatives to improve soil quality, water saving measures and improvements to animal health and welfare.

Grant money will also go to landowners interested in creating sustainable forestry operations, to give them a financial incentive to manage woodland in a way which improves biodiversity. The move has been welcomed by industry and countryside groups, including the Country Land and Business Association and NFU, who said the move was a logical one given the current economic crisis.

A CLA spokesperson said, "This is a welcome initiative which we understand will apply to a range of schemes from small bio-fuel projects and rainwater harvesting through to herd health monitoring technology and timber processing."

Defra said funds will be allocated from now until December 2013.