New funding available for lowland peat soils

Farmers and land managers on lowland peat soils can apply for 2 new grants which support farmers and land managers to balance productive businesses with benefits for climate, nature and water.

• The Lowland Peat Water Implementation Grant provides funding for water management infrastructure projects.

• The Paludiculture and Wetter Farming Fund provides grants to improve understanding of the water management, machinery, harvesting and processing needed to create viable markets for food and fibre crops grown at high water tables.

Every farm is different, and there is no one-size-fits-all approach. These grants recognise that farming and environmental outcomes can go hand in hand, and that decisions should reflect local business and land needs. The funding is designed to support practical solutions that work on the ground.

The Lowland Peat Water Implementation Grant

Through the Lowland Peat Water Implementation Grant, £36 million is available to support water management projects on lowland peat soils. Funding will support water infrastructure projects that help manage water levels across peat landscapes.

This can help to:

• protect peat soils from degradation
• improve long-term land viability
• support more resilient farming systems

Projects can support both sustainable agriculture and wider environmental benefits in lowland peat catchments.

If you already have a water management implementation plan, you can apply for between £100,000 and £2 million. Grants can cover up to 100% of eligible project costs. Projects must be completed by 31 March 2030.

The grant scheme is now open for applications and closes at 11.59pm on 18 September 2026. Defra plan to open a second application window in summer 2028 for applicants who need more time to develop a water management implementation plan.

Learn more

The Environment Agency (the organisation delivering the grant) will host a one-hour webinar on 15 July at 10am to explain the grant and the application process. You will be able to put your questions directly to the team. Register to attend the webinar.

Further details on the Water Implementation Grant scheme can be found on the GOV.UK website. To request an application pack, email peatwatergrants@environment-agency.gov.uk.

The Paludiculture and Wetter Farming Fund

Through the Paludiculture and Wetter Farming Fund, £10 million in grant funding is available to support projects on lowland peat soils.

Funding is available across 2 priority areas:

• developing markets and supply chains for wetland crops used in industrial products
• testing food production systems that work with higher water tables

The fund will support projects that:

• develop supply chains and markets for the wetland crops Typha, Phragmites and Sphagnum
• develop practical growing systems, suitable machinery and processing methods
• strengthen the commercial case for farming food crops on wetter peat soils

This can help you:

• developing markets and supply chains for wetland crops used in industrial products
• testing food production systems that work with higher water tables

The fund is open now and closes at 5pm on 21 August 2026. 

Learn more

Natural England, the organisation delivering the grant, will host a webinar on 7 July. To register, email PWFF@naturalengland.org.uk.

Full guidance and information on how to apply are available on the Defra eCommercial portal, Atamis where applications can be submitted through from 26 June to 21 August 2026.

You can see other open funding calls in our Funding Finder.