3 Who can apply and what land is eligible
You must read and meet the requirements detailed in this section as these are mandatory for all CS Capital Grants (SFI pilot) Agreement Holders.
You must also read and meet the requirements in the 2022 CS Capital Grants manual where identified below as relevant.
3.1.1 What land you can enter into the scheme
To be offered a CS Capital Grants (SFI pilot) agreement you must have an SFI pilot standards agreement. If your SFI pilot standards agreement ends for any reason, your CS Capital Grants (SFI pilot) agreement will also end (read section 7.1.1 of this supplement).
You can only apply for CS Capital Grants (SFI pilot) on land parcels that are:
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included in your SFI pilot standards agreement or
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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 eligible improved grassland is, read the Farm woodland standard guidance on GOV.UK.
You must have management control of the relevant land parcels for 5 years from the CS Capital Grants (SFI pilot) agreement start date or have your application countersigned by the landlord (read section 3.2.1 of this supplement). You must also have management control of both sides of any hedgerows. If you only have management control of one side of a hedgerow that is in your SFI pilot standards agreement, that hedgerow is not eligible for CS Capital Grants (SFI pilot).
3.1.2 Land parcels and boundaries which are not eligible
The following are not eligible for CS Capital Grants (SFI pilot):
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Land (including boundaries) not included in an SFI pilot standards agreement or being used to support delivery of the Farm woodland standard’s optional action to ‘Expand your woodland’
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Land in a Site of Special Scientific Interest or Scheduled Monument (including the boundaries of these sites)
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Land where you do not have management control for 5 years from the CS Capital Grants (SFI pilot) agreement start date and are not able to have your application countersigned by the landlord (read section 3.2.1 of the 2022 CS Capital Grants manual)
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Land which you occupy under a tenancy, including the Agricultural Holdings Act 1986, the Agricultural Tenancies Act 1995 (a Farm Business Tenancy) or equivalent, and you don’t have security of tenure for at least 2 years from the CS (SFI pilot) Capital Grants agreement start date
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Hedgerows where you do not have management control of both sides of the hedgerow. You cannot apply for BN5 (and the BN10 supplement), BN6, BN7 or BN11 if you only have management control of one side of a hedgerow in the Hedgerows standard
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Land that is already included in certain other schemes or under obligation (read section 3.3 of this supplement)
The management control requirement under CS Capital Grants (SFI pilot) is different to your SFI pilot standards agreement.
For CS Capital Grants (SFI pilot) you must have management control of:
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all the land and all the activities needed to meet the requirements of the capital items you select for 5 years from the CS Capital Grants (SFI pilot) agreement start date, including the durability requirement (read section 2.2 of the 2022 CS Capital Grants manual).
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both sides of a hedgerow if it’s being used for CS Capital Grants (SFI pilot). If you only have management control of one side of a hedgerow in the Hedgerows standard, that hedgerow is not eligible for CS Capital Grants (SFI pilot).
If you do not have full control of the land and all such activities, you must get the written consent of all other parties who have management control of the land and activities for 5 years from the start of the CS Capital Grants (SFI pilot) agreement. Use the CS land ownership and control form to do this.
3.2.1 Tenants
The management control requirement under CS Capital Grants (SFI pilot) for land occupied under a tenancy, including the Agricultural Holdings Act 1986, the Agricultural Tenancies Act 1995 (a Farm Business Tenancy) or equivalent is different to the management control requirement for your SFI pilot standards agreement. Read section 3.2.1 of the 2022 CS Capital Grants manual.
3.2.2 Landlords
A landlord cannot apply for CS Capital Grants (SFI pilot) on land let to a tenant. This is because a landlord could not include land let to a tenant in an SFI pilot standards agreement.
3.2.3 Partnerships
If you are in a business partnership with an SFI pilot standards agreement, you can apply for CS (SFI pilot) Capital Grants. The person signing the CS Capital Grants (SFI pilot) application must have the appropriate permission levels in the Rural Payments service.
3.2.4 Licensors
A licensor was eligible to include land entered into a licence arrangement in an SFI pilot standards agreement. Therefore, if you are an SFI pilot participant you can apply for CS Capital Grants (SFI pilot) on eligible land parcels entered into such a licence arrangement.
It is the licensor’s responsibility to make sure that the licensee does not breach the terms of the CS Capital Grants (SFI pilot) agreement.
3.2.5 Licensees
A licensee cannot apply for CS Capital Grants (SFI pilot) on land they only access under a licence arrangement. This is because that land was not eligible for an SFI pilot standards agreement.
3.2.6 Land owned by public bodies
Public bodies (such as local authorities or government departments) cannot apply for CS Capital Grants (SFI pilot). This is because they were not eligible to apply for an SFI pilot standards agreement.
You cannot use a grant for capital works which you are required to carry out under other legally binding obligations or for which you are receiving or have received funding from other sources. We will carry out checks to make sure that capital works are not funded twice from public money.
You must make sure that any work proposed for this grant does not breach the conditions of any other agreement. The most common examples are listed below.
It is only possible to apply for CS Capital Grants (SFI pilot) on land parcels in an SFI pilot standards agreement (and eligible land being used to deliver the ‘Expand your woodland’ optional action under the Farm woodland standard but is not in an SFI pilot standards agreement). Land in an existing agri-environment agreement is not eligible for the SFI pilot. It is also not eligible for CS Capital Grants (SFI pilot).
3.3.1 Applying for CS Capital Grants (SFI pilot) where someone else is claiming Basic Payment Scheme (BPS) on the same land (‘dual use’)
An explanation of ‘dual use’ can be found in section 3.3.1 of the 2022 CS Capital Grants manual.
Dual use is not possible in the SFI pilot or the CS Capital Grants (SFI pilot) scheme. Only the SFI pilot participant is eligible to use a land parcel in their SFI pilot standards agreement to claim BPS.
3.3.2 Environmental Stewardship
Land parcels in an existing Higher Level Stewardship (HLS) agreement are not eligible for CS Capital Grants (SFI pilot).
3.3.3 Countryside Stewardship
Land parcels in an existing Countryside Stewardship agreement are not eligible for CS Capital Grants (SFI pilot).
3.3.4 Environmental Land Management schemes Sustainable Farming Incentive pilot
SFI pilot participants can enter land parcels into a CS Capital Grants (SFI pilot) agreement that are:
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in an SFI pilot standards agreement; or
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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 an 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.
3.3.5 English Woodland Schemes
Land parcels covered by a multi-annual English Woodland Grant Scheme (EWGS) agreement, England Woodland Creation Offer (EWCO), Farm Woodland Payment (FWP), Farm Woodland Premium Scheme (FWPS) and Farm Woodland Scheme (FWS) are not eligible for CS Capital Grants (SFI pilot).
3.3.6 Farming Recovery Fund
Land parcels covered by the Farming Recovery Fund are not eligible for CS Capital Grants (SFI pilot).
3.3.7 Inheritance tax or Capital Gains exemption
Read section 3.3.7 of the 2022 CS Capital Grants manual.
3.3.8 Capital Grants under Countryside Productivity, Growth Programme, LEADER, Water Environment Grant, Farming in Protected Landscapes, Farming Investment Fund, Woodland Carbon Fund, HS2 Woodland Fund and England Woodland Creation Offer
Read section 3.3.8 of the 2022 CS Capital Grants manual.
Read section 3.4 of the 2022 CS Capital Grants manual.