The future of the key Defra grant schemes of interest to the pig sector is up in the air, as the department undertakes a review that is causing concern across farming.
Defra recently confirmed that, despite the ‘largest ever’ £5bn budget for farming and the environment over two years, it was ‘simplifying and rationalising grant funding’ after high demand for some grant items led to unsustainable spending.
It is now reviewing all grants to ensure they meet its core priorities, with further updates promised in early 2025.
NFU support scheme adviser Richard Wordsworth explained that flagship schemes under the Environmental Land Management scheme banner had ‘swallowed up a lot of the funding’, even with the premature end of basic payments in England. He outlined what the review means for key schemes.
Farming Equipment and Technology Fund (FETF)
There are three strands to FETF – improving productivity (allocated £70m in 2024), slurry management (10.5m) and animal health and welfare (£20m).
Round 1 of the 2024 FETF, which provides grants of up to £25,000 or £50,000 for a wide range of small items, was popular, including among pig farmers, with the window closing in April. The process is continuing, and those who have been accepted need to submit their grant claims before midday, January 10.
The second, and possibly third, FETF 2024 application windows were initially expected over the summer and autumn, but never came. Defra has now confirmed they will no longer happen.
“It is still possible there might be an offer in 2025, but it is wrapped up in the grant review. In the worst-case scenario it won’t appear again,” Mr Wordsworth said.
You can read more on FETF from the NFU HERE.
Slurry Infrastructure Grants (SIG)
Under the SIG, farmers could apply for grants of £25,000-£250,000 to improve slurry storage.
The initial application window for round 2 closed in January 2024, with full applications for those shortlisted, following a location check, due by June 27, 2025. This is still progressing.
“There was due to be a round 3 with a bigger budget allocated, but we have not yet seen it materialise, and it is also now part of the review. It may never happen but, in its favour, water and air quality are still key issues, so the justification has not gone away,” Mr Wordsworth said.
Infrastructure grants
The biggest concern for many in the pig sector will be the future of the large infrastructure grants, which are linked to the Animal Health and Welfare Pathway.
Rounds 1 and 2, offering grants of up to £500,000, were focused on calf and hen housing. Round 3, in 2025, was under the previous government always going to be about converting indoor pig farrowing accommodation, with initial discussions having taken place.
Mr Wordsworth said: “We are totally unsure about how this one lies. It may never be realised as it wasn’t as far developed as some other grants.”
However, the NPA and others have made a compelling case that infrastructure grants will be essential for the extremely costly transition to flexible farrowing.
Capital grants
The application window for Countryside Stewardship grants, which include, for example, covering slurry stores, is also paused, as applications have so far comfortably exceeded the budget.