2 How CS Capital Grants (SFI pilot) works

This section provides information about the main elements of CS Capital Grants (SFI pilot).

You must read and meet the requirements detailed in this section as these are mandatory for CS Capital Grants (SFI pilot) Agreement Holders.

For 2022, there are two separate CS Capital Grants offers:

  • CS Capital Grants (SFI pilot) which is only available to Sustainable Farming Incentive (SFI) pilot participants on land being used for the SFI pilot

  • 2022 CS Capital Grants which SFI pilot participants can also apply to on land which is not being used for the SFI pilot.

There are some differences between CS Capital Grants (SFI pilot) and 2022 CS Capital Grants. Where there is a difference, that is explained in this supplement. If there isn’t a difference, you must read the relevant section in the 2022 CS Capital Grants manual as identified in this supplement.

CS Capital Grants (SFI pilot) are two-year standalone capital grants available under CS. There are 29 capital items available to help you undertake the actions for the standards in your SFI pilot standards agreement.

As an SFI pilot participant, you can only apply for CS Capital Grants (SFI pilot) on land parcels that are:

  • included in your SFI pilot standards agreement; or

  • arable land or improved grassland (between 0.1 ha and 0.5 ha) that is being used to support delivery of the Farm woodland standard’s optional action to ‘Expand your woodland’. This land will not be in your SFI pilot standards agreement but is adjacent to established woodland included in the Farm woodland standard. To find out what improved grassland is, read the Farm woodland standard guidance on GOV.UK.

These land parcels are only eligible for CS Capital Grants (SFI pilot). You must not include these land parcels in a 2022 CS Capital Grants application.

If you have other land that is not eligible for CS Capital Grants (SFI pilot), you can include it in a separate application to 2022 CS Capital Grants if it is eligible. Read Section 3 of the 2022 CS Capital Grants manual for more information.

The capital items you can apply for in CS Capital Grants (SFI pilot) will depend on which standard(s) are in your SFI pilot standards agreement. Each standard has specified capital items you can choose from. This is explained in section 2.1 of this supplement.

The available capital items are split into three groups:

  • Boundaries, Trees and Orchards

  • Water Quality

  • Air Quality

The maximum grant available for any CS Capital Grants (SFI pilot) application is £60,000. However, there is a limit of £20,000 within each item grouping as shown below. These limits are applied separately if you also apply for 2022 CS Capital Grants on land that is not eligible for CS Capital Grants (SFI pilot).

Group Limit
Boundaries, Trees and Orchards £20,000 maximum
Water Quality £20,000 maximum
Air Quality £20,000 maximum

For both CS Capital Grants (SFI pilot) and 2022 CS Capital Grants, you can submit an application for the eligible land parcels you manage under each Single Business Identifier (SBI). An SBI can have an agreement under CS Capital Grants (SFI pilot) and 2022 CS Capital Grants at the same time, as they are separate offers. You cannot apply for capital items on land parcels in an existing capital grants agreement until the capital works are completed and you have submitted your final claim.

You can submit a CS Capital Grants (SFI pilot) application from 8 February 2022. Applications will remain open until the funding is allocated. If we are oversubscribed and it is necessary to close applications, we will publicise this date, including on GOV.UK, giving you 6 weeks’ notice.

It is only possible for you to apply for CS Capital Grants (SFI pilot) online in the Rural Payments service. You can access the application via the ‘Environmental Land Management’ area in the Rural Payments service. Read section 4 of this supplement for information on how to apply.

If your application is successful, we will offer you a 2-year, standalone CS Capital Grants (SFI pilot) agreement. This agreement is separate to your SFI pilot standards agreement, with its own terms and conditions. If you accept the agreement offer, you will enter into an agreement with RPA. The terms of your CS Capital Grants (SFI pilot) agreement will apply.

Your CS Capital Grants (SFI pilot) agreement will usually start from the first day of the following calendar month after you have accepted the agreement offer. The exact start date of the agreement will be set out in the Agreement Document.

Once your CS Capital Grants (SFI pilot) agreement starts, you can begin your capital items work, including ordering and paying for materials. Any capital items work you begin before your CS Capital Grants (SFI pilot) agreement starts will not be eligible for this capital items funding.

You may need to keep evidence and provide it when requested. Read section 6 of this supplement, the scheme Terms and Conditions and check the GOV.UK Countryside Stewardship grants (known as grants finder) for the evidence and record-keeping requirements of grants before you apply for them.

2.1 Capital items available

2.1.1 Less restrictive use of capital items in CS Capital Grants (SFI pilot)

There are 29 capital items available to SFI pilot participants to support delivery of the SFI pilot standards.

Some of these capital items are available in both CS Capital Grants (SFI pilot) and 2022 CS Capital Grants but have a less restrictive use when applied for under CS Capital Grants (SFI pilot). There are also some capital items that are usually only available in CS Higher Tier.

The 29 capital items available in CS Capital Grants (SFI pilot) are comprised of:

  • 24 capital items available in both CS Capital Grants (SFI pilot) and 2022 CS Capital Grants. However, where these capital items are applied for under CS Capital Grants (SFI pilot) there are differences in how or where some of these capital items can be used. These differences mean the use of the affected capital items is less restrictive in CS Capital Grants (SFI pilot) than CS Capital Grants.

  • 5 capital items which are not available in 2022 CS Capital Grants. They are usually only available in the CS Higher Tier, with supporting advice. This is different for CS Capital Grants (SFI pilot). SFI pilot participants can apply for these items in CS (SFI pilot) Capital Grants without advice. These capital items are: Fencing supplement for difficult sites (FG5), Deer fencing (FG9), Temporary deer fencing (FG10), Deer pedestrian gate (FG16), Deer vehicle gate (FG17).

Where there is a difference in how or where a capital item can be used in CS Capital Grants (SFI) pilot, that only applies if:

  • you are an SFI pilot participant;

  • you are applying for a CS Capital Grants (SFI pilot) agreement; and

  • the capital item is located on a land parcel that is either in your SFI pilot standards agreement or is eligible arable land or improved grassland (0.1ha - 0.5 ha) that is being used to support delivery of the Farm woodland standard’s optional action to ‘Expand your woodland’. This land will not be in your SFI pilot standards agreement but is adjacent to established woodland included in the Farm woodland standard. To find out what eligible improved grassland is, read the Farm woodland standard guidance on GOV.UK.

The information below identifies where there is a difference for capital items available in CS Capital Grants (SFI pilot) compared with 2022 CS Capital Grants. These differences only apply to CS Capital Grants (SFI pilot), not 2022 CS Capital Grants.

2.1.2 Capital items available for each SFI pilot standard

Each SFI pilot standard has specific capital items identified as being available to support its delivery. Which capital items you can apply for depends on the SFI pilot standard(s) you have in your SFI pilot standards agreement. There is more information below on which capital items are available for each SFI pilot standard.

You can only apply for the identified capital items on land parcels entered into the relevant SFI pilot standard. For example, you can only apply for Resurfacing of gateways (RP1) on a land parcel entered into the Arable and horticultural soils standard or the Improved grassland soils standard.

The only exception to this is the Farm woodland standard. The 13 capital items identified as being available for the Farm woodland standard can only be used on land parcels used to deliver the ‘Expand your woodland’ optional action. This action can only be undertaken on arable land or improved grassland (between 0.1 ha and 0.5 ha) adjacent to established woodland included in the Farm woodland standard. In this case, you need to apply for TE4 (Supply and plant a tree) in order to apply for the other capital items available to support the Farm woodland standard.

2.1.3 Maximum funding limits

The available capital items are split into 3 groups - Boundaries, Trees and Orchards; Water Quality; and Air Quality. You can apply for a maximum of £60,000 funding in your CS (SFI pilot) Capital Grants application, with a limit of £20,000 per group.

If you apply for both CS Capital Grants (SFI pilot) and 2022 CS Capital Grants, these funding limits apply separately.

2.1.4 Supporting advice

None of the capital items available in CS Capital Grants (SFI pilot) require Catchment Sensitive Farming (CSF) approval or supporting advice.

2.1.5 Choosing capital items

Use Countryside Stewardship (CS) grants (known as grant finder) on GOV.UK which gives a description and essential requirements for each capital item. This includes more information on differences in use of the available capital items in CS Capital Grants (SFI pilot), where relevant, as well as evidence requirements. Also read section 5 of this supplement for more information.

The table below shows:

  • which capital items are available under each SFI pilot standard

  • which of the 3 groups applies to the capital item (Boundaries, Trees and Orchards, Water Quality and Air Quality)

  • if there is a difference in the use of a capital item under CS Capital Grants (SFI pilot) compared with 2022 CS Capital Grants.

SFI pilot standard Option code Option title Group Different to 2022 CS Capital Grants
Arable and horticultural soils RP1 Resurfacing of gateways Water Quality Yes
Arable and horticultural land WB1 Small wildlife box Boundaries, Trees and Orchards Yes
  WB2 Medium wildlife box Boundaries, Trees and Orchards Yes
  WB3 Large wildlife box Boundaries, Trees and Orchards Yes
Improved grassland soils RP1 Resurfacing of gateways Water Quality Yes
Improved grassland FG1 Fencing Water Quality Yes
  FG2 Sheep netting Water Quality Yes
  FG3 Permanent electric fencing Water Quality Yes
  FG4 Rabbit fencing supplement Water Quality No
  FG5 Fencing supplement – difficult sites Boundaries, Trees and Orchards Yes
  FG12 Wooden field gate Boundaries, Trees and Orchards No
  WB1 Small wildlife box Boundaries, Trees and Orchards Yes
  WB2 Medium wildlife box Boundaries, Trees and Orchards Yes
  WB3 Large wildlife box Boundaries, Trees and Orchards Yes
Water body buffering FG1 Fencing Water Quality Yes
  FG2 Sheep netting Water Quality Yes
  FG3 Permanent electric fencing Water Quality Yes
  FG12 Wooden field gate Boundaries, Trees and Orchards No
  LV3 Hard bases for livestock drinkers Water Quality Yes
  LV5 Pasture pumps and associated pipework Water Quality Yes
  LV6 Ram pumps and associated pipework Water Quality Yes
  LV7 Livestock troughs Water Quality Yes
  LV8 Pipework associated with livestock troughs Water Quality Yes
Hedgerows TE1 Planting standard hedgerow tree Air Quality Yes
  BN11 Planting new hedges Boundaries, Trees and Orchards No
  BN7 Hedgerow gapping up Boundaries, Trees and Orchards No
  FG1 Fencing Water Quality Yes
  FG2 Sheep netting Water Quality Yes
  BN5 Hedgerow laying Boundaries, Trees and Orchards No
  BN6 Hedgerow coppicing Boundaries, Trees and Orchards No
  BN10 Hedgerow supplement – top binding and staking Boundaries, Trees and Orchards No
  WB1 Small wildlife box Boundaries, Trees and Orchards Yes
  WB2 Medium wildlife box Boundaries, Trees and Orchards Yes
  WB3 Large wildlife box Boundaries, Trees and Orchards Yes
Low and no input grassland FG1 Fencing Water Quality Yes
  FG2 Sheep netting Water Quality Yes
  FG3 Permanent electric fencing Water Quality Yes
  FG4 Rabbit fencing supplement Water Quality Yes
  FG5 Fencing supplement – difficult sites Boundaries, Trees and Orchards Yes
  FG12 Wooden field gate Boundaries, Trees and Orchards No
Farm woodland These capital items are only available on eligible land being used for the ‘Expand your woodland’ optional action. TE4 Supply and plant a tree* * Please note: you need to apply for TE4 in order to apply for the other capital items available in the Farm woodland standard Air Quality Yes
  BN13 Top wiring – stone wall Boundaries, Trees and Orchards Yes
  FG1 Fencing Water Quality Yes
  FG2 Sheep netting Water Quality Yes
  FG4 Rabbit fencing – supplement Water Quality No
  FG5 Fencing supplement for difficult sites Boundaries, Trees and Orchards Yes
  FG9 Deer fencing Boundaries, Trees and Orchards Yes
  FG10 Temporary deer fencing Boundaries, Trees and Orchards Yes
  FG12 Wooden field gate Boundaries, Trees and Orchards No
  FG14 Badger gate Boundaries, Trees and Orchards Yes
  FG16 Deer pedestrian gate Boundaries, Trees and Orchards Yes
  FG17 Deer vehicle gate Boundaries, Trees and Orchards Yes
  TE5 Supplement for use of individual tree-shelters Air Quality Yes

2.2 Agreement period

Read section 2.2 of the 2022 CS Capital Grants manual.

2.3 How applications are assessed

Read section 2.3 of the 2022 CS Capital Grants manual.

2.4 What the grant does not cover

Read section 2.4 of the 2022 CS Capital Grants manual.