The Department for Environment, Food and Rural Affairs (Defra) and Innovate UK have announced £28m for research projects tackling soil and water problems on farms, from soil degradation to drought and agricultural pollution.
The competition, Healthy Soils and Water for a Sustainable Environment, is part of the Farming Futures R&D Fund under Defra’s Farming Innovation Programme. It was published on 27 October. Applications open at 9am on 19 November and close at 11am on 28 January 2027.
The fund arrives after a dry summer. On the same day, the Agriculture and Horticulture Development Board (AHDB) published modelling showing that a 15% fall in wheat and spring barley yields would cut net profit on a 455-hectare arable farm in eastern England by 61%, FarmingUK reported. AHDB described the figures as hypothetical scenarios.
Projects must have total costs of between £1m and £5m and run for up to three years, finishing by 31 July 2030. Each must be led by a UK-registered business working with at least one other organisation. Universities can take part as partners but cannot lead. Micro and small businesses can claim up to 70% of eligible costs, medium-sized firms 60% and large companies 50%, according to the competition guidance.
Work must benefit farmers, growers or foresters in England. At least half of the grant requested by farm, grower and forester participants must go to those based in England.
The guidance sets out four scope areas. They cover soil, water and land management; fertilisers, nutrient management and pollution reduction; climate resilience, including water storage and flood mitigation; and decision support tools built on sensors, data platforms and AI. Projects that combine several areas through a systems-based approach are particularly encouraged. Forestry-only, equine, aquaculture and cultivated meat projects are excluded.
A collaboration-building event will be held on 1 December. Shortlisted applicants will be invited to interview from 31 March 2027 and told the outcome on 27 May 2027. The competition draws on the £53m farming innovation investment Defra announced in June, and follows the department’s plan to steer private finance into local nature recovery.
For rural businesses, the fund offers farmers a route into funded soil and water trials on their own land, with projects required to start by 1 August 2027.
