The National Sheep Association (NSA) has expressed concern following the government’s confirmation this week that it will temporarily suspend 76 capital grants previously available under its farming schemes.

The grants, which were offered to fund essential items such as fencing, water management, and habitat restoration, are considered fundamental to improving farm infrastructure and enhancing biodiversity.

According to the NSA, many farmers had already began to plan farm practices in anticipation of receiving the scheme’s grants, therefore their unexpected termination now leaves them in financial and operational “limbo”.

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Although existing agreements remain in place, uncertainty over future funding will curtail progress on critical projects, NSA asserted.

NSA chief executive, Phil Stocker said: “This move comes at a critical time when sustainable farming and nature recovery demand urgent and sustained investment. The abrupt suspension of the capital grants is a further betrayal of commitments to support rural livelihoods and environmental stewardship.

“Farmers are the custodians of our landscapes and biodiversity. This withdrawal jeopardises their ability to deliver vital environmental benefits while maintaining food production.

“It undermines confidence in government support and sends the wrong message to those striving to achieve net-zero and sustainable farming goals.”

The government announced the temporary end to the 76 capital grants due to the “overwhelming demand” generated for them which have resulted in high levels of subsequent fiscal spending which they have deemed as unsustainable.

In a statement justifying their decision which was published online yesterday, government said: “To ensure the funding can be prioritised to help build a sustainable farming sector, we’re simplifying and rationalising grant funding. This is being done to prioritise funds for areas that will have the greatest benefit for food security and nature conservation.”

In the meantime, three grants will remain open for new applicants, it said, including: Woodland Tree Health grants: which help protect tree health against devastating plant pests and diseases; Capital grant plans and management plans: to help support the development of new country stewardship higher tier agreements.

Protection and Infrastructure grants and Higher Tier capital grants: to help support delivery of high value environmental benefits, such as re-wetting peatland.

“The decision prioritises limited high-value areas like tree health while leaving large swathes of rural communities without necessary resources. This approach risks deepening regional inequalities and hindering efforts to address the climate crisis.

“NSA is calling for immediate clarity from Defra on future funding plans. It is vital that the government adopts a transparent, consistent approach to agricultural support that genuinely reflects the needs of rural Britain.

“If the government is serious about its environmental and food security ambitions, it must invest in the people at the heart of these goals. Farmers are ready to deliver, but they need the tools and trust to do so,” NSA policy manager, Emma Owen said.