Early 2026 launch expected for new £40m NI farm capital grant scheme

A new £40 million farm capital grant scheme for Northern Ireland will be launched during the early weeks of 2026.

The Department of Agriculture, Environment and Rural Affairs (DAERA) recently briefed members of the Stormont Agriculture Committee on the issue.

Sinn Féin's agricultural spokesperson Declan McAleer has welcomed the announcement of new £40m measure.

The West Tyrone MLA told Agriland: "It represents an important investment in the future resilience and productivity of our agriculture sector.

"The scheme will provide £25,000 capital grants for equipment, with a second phase planned to support larger, transformative projects." 

Farm capital grant scheme

McAleer pointed out that equipment such as low emission slurry spreading equipment LESSE will be key to reducing on-farm emissions, including ammonia.

"It is my understanding that the scheme is due to open in the early New Year, with a soft launch," he said.

"I have sought assurances that small farmers will be able to benefit fully.

"With a grant rate of 40%, a minimum investment level of £3,000, and a maximum grant of £25,000, the design of the scheme should enable a wide range of farm enterprises to participate.”

McAleer has indicated that the new scheme has the potential to make a real difference on the ground: improving efficiency, supporting innovation, and helping farmers adapt to the policy and market challenges that have emerged in the post-EU transition period.

He explained: "This capital grant scheme is a timely and constructive step that will support farm sustainability, enhance competitiveness, and help secure the long-term viability of our agri-food sector.

"I look forward to seeing farmers of all sizes taking advantage of it when it opens." 

The timing of the new capital grant scheme is highly significant given that it complements the direction of travel now being followed with regard to the introduction of a new Nutrients Action Programme (NAP) for Northern Ireland.

NAP

Stakeholder organisations, including the Ulster Farmers' Union, have been calling for the introduction of support measures that will allow farmers to invest in new technologies that will allow them improve the environmental sustainability of their businesses while still maintaining current levels of food production.

The relevance of the new capital grant scheme must be assessed in this context.

Recommendations from a NAP stakeholder forum are expected in the early New Year.

The NAP issue was one of the most contentious to arise within Northern Ireland’s farming sector in 2025.

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