DEFRA provides headline figures of £2.7 billion for “sustainable farming and nature recovery” in their spending review.
Environmental Land Management Schemes will receive £2 billion annually, with a slightly lower amount in the first two years, rising to the full £2 billion in 2028/29.
Summary
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Funding for other elements of the Farming and Countryside Programme will decrease from £350 million to £250 million over the three years. These funds will support objectives such as improving productivity, encouraging innovation, facilitating the transition to nature-friendly farming, and providing advice and support services.
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£450 million annually is earmarked for “additional nature schemes,” including tree planting and peatland restoration.
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Residual delinked payments totalling £20 million will continue for the next two years.
According to DEFRA’s summary table, the equivalent funding to the £2.4 billion annually inherited from the CAP and gradually reallocated will reduce to £2.25 billion in cash terms by 2028/29.
Nature for Climate Fund and a Biodiversity Targets Programme
At this stage, DEFRA highlights the Nature for Climate Fund and the Biodiversity Targets Programme, with combined funding of up to £400 million annually. This is currently understood to fall within the broader allocation for Nature Schemes. These initiatives are also expected to serve as channels for funding from the proposed Nature Restoration Fund—included in the Planning and Infrastructure Bill—and for utilising payments from developers. Additionally, DEFRA’s blog suggests that nutrient credit sales will remain an option for those for whom it is suitable.
Residual Delinked Payment
The previously announced 76% reduction in payments (from 2020 levels for payments below £30,000) for 2025/26 will now increase to a 98% reduction, implying a maximum payment of approximately £600. No explanation has been given for retaining this payment at such a minimal level for a further two years, though it appears to align with the completion of the original seven-year transition period set out in 2020 under the Agriculture Act.