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Water quality and water usage on farms remain key concerns. Farming operations require significant water inputs, and during drier months, abstraction can become a challenge. Fertilisers and pesticides, essential for crop protection, risk polluting water sources if not managed correctly. Similarly, livestock farming can generate waste that, if mishandled, may contaminate rivers or groundwater.
Fortunately, several government and water industry schemes are in place to help farmers improve water efficiency, protect water quality, and enhance environmental sustainability. Here’s a closer look at some of the key schemes and opportunities farmers should be aware of in 2025.
Government grants
Water Capital Grants (under Countryside Stewardship)
Active as part of the Countryside Stewardship scheme, Water Capital Grants offer up to £10,000 for projects that improve water management and prevent water pollution. Common improvements include covered manure stores, fencing off watercourses, and installing rainwater harvesting systems.
Countryside Stewardship (CS)
This scheme supports a wide range of environmental improvements. For farmers, it provides payments for actions such as:
- Reducing nutrient runoff
- Buffer strips alongside watercourses
- Tree planting and woodland creation
- Natural flood management initiatives
Note: Countryside Stewardship is being phased into the new Environmental Land Management Schemes (ELMS), so check current eligibility and overlap with SFI (below).
Sustainable Farming Incentive (SFI)
The SFI is a key part of the government’s Environmental Land Management (ELM) reforms. It pays farmers to deliver outcomes such as:
- Soil health improvement
- Nutrient management
- Integrated pest management
- Precision farming practices
- Buffering water bodies
New 2025 additions to SFI include more options for agroforestry, advanced slurry management, and payment boosts for stacking multiple actions on the same land.
Farming Equipment and Technology Fund (FETF)
Grants are available for precision farming equipment, slurry management tools, and technology that reduces water and fertiliser waste.
Water company initiatives for farmers
Retailer-specific Support
Check with your water retailer to explore offers and schemes specifically for agricultural businesses. Leading retailers, such as Castle Water, offer preferential tariffs, farm-specific support, and advice to reduce usage and improve sustainability.
Castle Water & NFU Scotland Partnership
Castle Water partners with NFU Scotland to offer exclusive water and wastewater rates to NFUS members. Our services are designed for farms, crofts, and rural businesses of all sizes and include:
- Preferential pricing
- Leak detection and contingency planning
- Agricultural wastewater treatment
- Trade effluent management
- Free water efficiency audits
With our dedicated Scotland-based agricultural team, farmers can access expert help to streamline their water usage, improve yields, and reduce costs without losing time on admin or compliance.
Additional support services from Castle Water
- Smooth switching with no service interruption
- Consolidated billing for multi-site farms
- Online account management tools
- Support with water-saving strategies
- Advice on climate resilience and drought planning
Other programs worth considering
Catchment Sensitive Farming (CSF)
Run in partnership with Natural England, CSF offers free expert advice and sometimes grants for reducing water pollution from agriculture. It complements Countryside Stewardship applications.
Slurry Infrastructure Grant
Helps livestock farmers upgrade slurry storage to meet regulations and reduce runoff. Apply early, as demand is high.
Woodland Creation Grants
Under the England Woodland Creation Offer (EWCO), funding is available for tree planting that supports water retention and prevents soil erosion.
Local Authority Climate or Water Resilience Schemes
Some councils and river trusts offer localised incentives for sustainable drainage, wetland creation, or irrigation improvement. These vary regionally and are worth checking locally.
Get the most from your water services
Whether you’re looking to improve water quality, meet compliance standards, or simply cut costs, Castle Water is here to help. Our partnership with NFUS delivers real savings, and our experienced team can help you access grants, plan improvements, and maximise the value of your water resources.
