Announcements over the closure of the capital grant scheme in England have sparked backlash within the seep farming community, warns the National Sheep Association (NSA).

NSA Chief Executive Phil Stocker says: “There are few organisations that have embraced the spirit of co-design and the need to build trust between industry and Defra more than NSA. We have worked tirelessly and proactively to help test scheme design and to feedback on members' experiences. But what we are seeing now is a betrayal of trust and confidence that has been promised and worked towards over the last eight years.

“We have members who have wholeheartedly thrown themselves into the SFI pilot, whose agreements have now ended with no certainty over continuation into SFI, fears over budget cutbacks, and the capital grants that have been a key part of fulfilling SFI actions being closed. On top of that, farmers are now facing huge reductions in BPS in 2025 that far exceed what was expected.”

The closure of capital grants come after overwhelming demand for some capital grant items, with the main capital grant offer temporarily closed to new applications and denying access to a total of 76 grant items.

Mr Stocker continues: “It seems absurd that farmers are being punished for their enthusiasm to move towards more efficient and sustainable practices. Defra and Government are again showing a lack of understanding that farming businesses have to budget years in advance. Many farmers cannot afford to carry out these environmental works without funding and, while we may be seeing record sheep prices, these are struggling to cover the inflationary pressures within business enterprises.

“The whole principle behind our new post-CAP direction was one of payment reward for delivery of public goods, many of which restrict business activities on farms and need paying for. Furthermore, the investment in sustainable farming contributes to our climate change, nature recovery and natural resource commitments. If Defra and Government continue on this trajectory, we will be back to square one and there are many that will not have the appetite for that.”