Monthly Digest - July 2025

Monthly Digest – July 2025

Dr Dannielle Robb

Jul, 07 2025

Below are links to the latest exclusive insights as part of your membership. Please click below to read more.

Capital Grants now open

Capital Grants have now been reopened with immediate effect.

It is a first come, first served offer this time around up to the £150M of funding. Information says that “this round of the scheme will close to applications when the available funding is committed. We will aim to give reasonable notice of scheme closure, but this may not be possible.”
In general, all the rates per option seem the same as before.
There are new caps depending on the options to either £25k or £35k.
If you have already got an “open” claim for something else, that parcel cannot be re-entered for another grant until the previous one has been completed, claimed and paid.
1 application per SBI per annum.
Please note the options that still require CSFO visits and endorsements as that adds another level of time constraints.

SFI note: For the group of applicants who were able to carry on a limited SFI application after the closure of the scheme earlier this year, the RPA has now written to those eligible to set out more detail on the process for taking forward an application.

Animal Health & Welfare Pathway

From the 26th June, farmers in England can get a funded vet visit for each of their herds or flocks of the same species. For example, if you have 3 herds of dairy cows, you can now apply for funding for all 3. Visits include testing for endemic diseases, a tailored health and welfare discussion with your vet and practical advice to support productivity, animal welfare and your business. More information can be found here.

Spending Review 2025

Defra’s latest spending review is live. Key outcomes are:

£16bn total capital allocation to Defra
£2.7bn per year for “farming, food security, and nature’s recovery”:

– £2.3bn annually for the Farming & Countryside Programme

– Up to £400mn for “additional nature schemes”

£2bn committed to Environmental Land Management Schemes (ELMS) by 2028/29 – focus on water, air and biodiversity.
£4.2bn over 3 years for flood defence infrastructure
More information in the coming weeks is expected as to how this allocation will be deployed.

Ceres Research brief note is here.

Defra tightens Autumn muck-spreading rules

Defra updated its statutory guidance on Farming Rules for Water in June. A summary of the amended rules include:

Autumn muck spreading is only justified when agronomic need is clearly proven
Farmers must have a nutrient management plan for each field, provided by a FACTS-qualified agronomist, referencing RB209 and provided using accredited farm software
The following are now mandatory:
- Soil sampling and analysis
- Testing of organic manure prior to application
- Assessment of crop nutrient requirements
- Must prove crop need and how the risk of diffuse pollution will be minimised

Whist the Environment Agency will continue an advice-led approach before enforcement, repeat issues could lead to penalties and it is important farmers plan practical steps now, to protect against future ramifications.

EA updates prospects for irrigation this summer

Irrigation prospects this summer are moderate, the EA reports. The dry spring and start to summer has contributed to a further downgrade to the irrigation prospects since April.

Actively review your water needs
Consider the range of options to help secure and increase water resilience this summer and into the future, options are available in the EA report linked above

Government to invest over £100m in water company fines to local environmental projects

These projects across the country will focus on cleaning up rivers, lakes and seas. Over £100m in fines and penalties levied against water companies since October 2023, as well as future fines and penalties, will be reinvested.

Funding available in relation to on-farm drought risks

You can apply for a screening study with the Environment Agency to assess and rank water resources options to increase your water supply resilience as part of a group of neighbouring farmers. The screening study will look at potential water resources options for your group of farmers to improve your water resource resilience, based on hydrology, cost, yield and suitability for required water use. Applications close on the 20th July.

Future rounds of ADOPT announced

The first round of ADOPT funding deadlines have passed but thankfully future rounds (with dates!) have been announced here. (note: Round 2 of the Facilitator Support Grant closes on the 24th July 2025, not 23rd). As a reminder, Tim Isaac CEO of Ceres Research, is an official project facilitator. Get in touch if you have an idea or want to discuss your next steps.

Call for evidence: expanding the role of the private sector in nature recovery

The government have opened another call for evidence and review, this time focusing on how to fairly and effectively increase the incentives for businesses to invest in nature, in line with the benefits they draw from the natural environment and the impacts they have on it. The deadline is 7th August and is open to all.

MetOffice report details how UK heatwaves will become longer and hotter

The overall impact of climate change is not anything new, but this recent paper details the increasing likelihood of extreme temperatures exceeding 40 degrees in the UK, which is now 20 times more likely than it was in the 1960s. Heatwaves are also likely to extend beyond one month or more in the near future.

Agricultural Land capability in Wales under climate change

This recent paper from Cranfield applies a predictive spatial modelling assessment of Agricultural Land Capability (ALC) in Wales for baseline climate (1961–1990) and future climate scenarios. The paper highlights:

Improvement in ALC due to decreasing limitations from soil wetness between the baseline and 2050
Drought limitations become more prevalent by 2080. Soil droughtiness is the most limiting factor for ALC in 2080, resulting in a decrease in the best and most versatile land for agriculture (by 2 to 11% compared to the baseline)
ALC is a useful tool to assess trade-offs between food production and other land uses (but requires some updates)

Chasing Peak Sugar: Lessons Learnt from India’s AI

In India, sugar cane farmers are utilising Microsoft Azure AI for precision farming. Small-scale operations are being equipped with weather stations, soil sensors and drone imagine/historical data which feeds into the AI platform. This is then analysed by the AI platform and is delivered to farmers in a user-friendly way such as ‘fertiliser in this location, water here…’ with agronomists reviewing the suggestions being sent to assure the accuracy of the recommendation.

By optimising resource use, reducing risks from pests and weather, and timing harvests for peak sugar content, AI-driven farming is helping vulnerable smallholders in India increase yields, reduce costs, and increase profits sustainably.

Carbon Prices for the UK Voluntary Carbon Market Published

Ecosystem Marketplace has published its third report on voluntary carbon market prices for the UK on domestic carbon units from the Woodland Carbon Code (WCC) and Peatland Code projects. This report includes pricing metrics for WCC projects, ordered by woodland type between 2020 -2024.

Future of Fertiliser Report Launched

Commissioned by Anglo American and Deloitte, this report interviewed 74 global industry experts to better understand what needs to change to ensure food can be produced responsibly to 2050. The report highlights:

Fertilisers will continue to underpin agricultural success but their application needs to be more sustainable
The agricultural industry must redefine the metrics of success and better manage the balance of yields, soil health and responsible farming practices

Not a game changer, but brings to light the future use of fertilisers which highlights the importance of collaboration, focusing on issues beyond yield, working more closely with farmers and internalise the environmental costs of fertiliser across the food value chain.

Review of the Water Sector

The Independent Water Commission’s interim report sets out emerging conclusions on reforms to improve the water sector regulatory system in England and Wales. The report covers 5 key areas including: strategic direction and planning, legislative framework, regulatory reform, company structures ownership and governance, and infrastructure and asset health. Key points include:

Clearer, long-term strategy from the water system balancing agriculture, land use, energy, transport and development
Industry-wide benchmarking framework to protect customers from misuse of monopoly of power in relation to price and service
Since the water industry was privatised in 1989, there have been material changes in ownership. Considerations are ongoing in relation to the extent to which these ownership models have been a factor in determining company performance and resilience
There is at present an insufficient understanding of the health of water sector assets and the overall resilience of the system which needs to be assessed both in the short and long-term.

Regenerative Agriculture POSTnote

This POSTnote brings together everything we know and view about Regen Ag including the evidence for beneficial outcomes and the report outlines the challenges and opportunities for its wider adoption. This report was supported by farmers and relatable bodies (including Ceres Research) that attended and contributed to a workshop run by the Royal Agricultural University a few months ago to discuss and debate Regen Ag in it’s entirety. Some outcomes of the report include:

Evidence suggests that Regen Ag can help to improve farmland biodiversity, soil health and water quality, but improvements may be limited by the context in which different practices are applied.
While Regen Ag can have positive effects on farmland biodiversity, it may have environmental trade-offs, such as using chemicals as an alternative to ploughing to manage weeds.
At the farm level, risks arising from transitioning to regenerative agricultural practices are partially mitigated by reduced overall spending on chemical inputs and fuel.
Interventions across food systems, such as independent knowledge exchange, peer-to-peer learning, local infrastructure and help to access new markets may support successful implementation in the UK.
Defra states it does not currently intend to subsidise regenerative agriculture.

Agronomy Club:

Agronomy Club 17th July, 1900-2000: Harvest Quality and Establishment Strategies. Register here. As usual, we will hold a short presentation, followed by an open discussion about these in-season topics with members. BASIS points are awarded.

Bookings now open for our Ceres Research AgriStrategy Conference!

The conference is for forward-thinking farmers, agronomists, and agricultural leaders. Hosted by Ceres Research and Ceres Rural, this event offers a unique opportunity to reflect on the past year’s challenges and breakthroughs, while equipping attendees with strategic insights for the seasons ahead. Through expert-led sessions, data-driven reviews, and future-focused discussions, the conference empowers the agricultural community to make informed, resilient, and sustainable decisions.

50% off ticket price for Ceres Research Members! Book here now.