The Rural Payments Agency (RPA) has reportedly suspended capital grants, sparking fresh alarm for farmers across the country.
The suspension is reportedly due to an increase in application numbers and growing budget pressures, leaving farmers facing renewed uncertainty.
The agency has so far provided no communication or guidance to advisors, applicants, or farmers.
The suspension, revealed by the Central Association of Agricultural Valuers (CAAV), affects a wide range of on-farm investments.
These include grants for silage clamps, slurry stores, dry stone walls, fencing, and new hedges.
The grants have been integral in helping farmers meet environmental standards and daily working practices.
In addition to this, the government has failed to meet its commitment to release information on Countryside Stewardship Higher Tier agreements.
Farmers were promised by the RPA that by late summer they would be able to start preparing applications.
However, it now appears that this information will not be available until next year, leaving many farmers unable to apply for grants at the moment.
This delay is likely to compound the uncertainty in the sector, preventing investments in environmental stewardship and farm infrastructure.
H&H Land & Estates has raised 'serious concerns' as the grants are 'essential investments' for many farming businesses.
Nick Mullins, chartered surveyor at the firm, also voiced concerns over the delayed release of the Countryside Stewardship information.
He said: “These delays are causing major uncertainty for farmers, many of whom are left without the capital support they need to make essential investments.
"Without clear communication from the RPA, the agricultural community is growing increasingly alarmed about the future of these grants and whether the agricultural budget is truly secure."
Mr Mullins concluded: "Currently, it is still possible to submit capital grant applications and recommend that applicants continue to do so.
"This shows Defra the importance of these grants to farmers.”
