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Healthy Soils and Water for a Sustainable Environment: £28 Million to Support Sustainable Agricultural Innovation

Opens:
19.11.2026
Closes:
28.01.2027
Sectors:
Agriculture
Circular Economy and Sustainability
Digital, AI & Machine Learning
Project Size:
Up to £28 million

The Department for Environment, Food and Rural Affairs (Defra), in partnership with Innovate UK, has announced the Healthy Soils and Water for a Sustainable Environment funding competition under the Farming Futures R&D Fund.

With up to £28 million available, the competition will support ambitious, collaborative research and development (R&D) projects that address challenges in soil health, water management, agricultural pollution and environmental sustainability.

The programme aims to accelerate the development and commercialisation of innovative technologies, practices and services that improve farm productivity, strengthen environmental sustainability and increase the resilience of agriculture in England.

Projects must demonstrate clear commercial potential and deliver measurable benefits for farmers, growers or foresters in England.

What Are the Objectives of the Competition?

The competition seeks to support innovative solutions that improve agricultural productivity while reducing the environmental impact of farming.

Successful projects must:

  • Develop commercially deployable technologies, practices or services that address soil, water and environmental management challenges.
  • Demonstrate measurable environmental benefits, including contributions towards net-zero emissions and improved resource efficiency.
  • Carry out a life cycle assessment (LCA) where necessary to evaluate environmental impacts.
  • Support knowledge exchange and dissemination to encourage wider adoption across the agricultural sector.
  • Demonstrate strong alignment with industry priorities and a clear route towards commercialisation.
  • Provide evidence of how the proposed solution will benefit farmers, growers or foresters in England.

Projects addressing multiple environmental challenges through an integrated, whole-farm approach are particularly encouraged.

What Types of Projects Are Eligible?

The competition supports industrial research projects across four main areas.

1. Soil, Water and Land Resource Management

This theme focuses on improving soil health, water availability and the sustainable management of agricultural land.

Eligible innovations include:

  • Technologies that improve soil organic matter, nutrient cycling, carbon storage and soil biodiversity.
  • Solutions that reduce soil compaction, erosion and degradation.
  • Technologies that improve water retention, infiltration and reduce surface runoff.
  • Precision irrigation systems and water scheduling tools.
  • Integrated approaches to improving water quality and reducing sediment pollution.
  • Solutions that strengthen the resilience of soil and water systems under changing environmental conditions.

2. Fertilisers, Nutrient Management, Circular Bioeconomy and Pollution Reduction

This theme supports innovations that improve nutrient efficiency, reduce agricultural pollution and encourage the reuse of valuable resources.

Projects may include:

  • Development of green and novel fertilisers.
  • Technologies that reduce nutrient leaching and agricultural runoff.
  • Improved management of slurry, manure and fertiliser applications.
  • Solutions that reduce nitrogen losses and associated greenhouse gas emissions.
  • Recovery and recycling of water and nutrients from agricultural waste, sludge, biosolids and digestate.
  • Technologies addressing agricultural pollutants, including microplastics and PFAS.
  • Innovations that improve anaerobic digestion, biomethane production and digestate utilisation.

3. Climate Resilience and Natural Resource Adaptation

This area focuses on helping agricultural systems adapt to climate change and increasingly unpredictable weather conditions.

Eligible projects include:

  • Farm-scale and landscape-scale water storage technologies.
  • Solutions that improve flood mitigation and drought resilience.
  • Innovations that strengthen the resilience of agricultural water systems.
  • Development of crop varieties with improved water and nutrient uptake.
  • Precision breeding approaches that improve nutrient-use efficiency and climate resilience.

4. Cross-Cutting Decision Support Tools

This theme supports the development of affordable, scalable monitoring technologies and digital solutions that help farmers make informed decisions.

Eligible innovations include:

  • Low-cost sensors for monitoring soil health, water use, nutrient efficiency and biodiversity.
  • Real-time monitoring technologies for water quality, greenhouse gas emissions and agricultural pollutants.
  • Integrated sensing and data platforms combining field sensors, satellite imagery and environmental datasets.
  • Artificial intelligence (AI), predictive modelling and advanced analytics to support agricultural decision-making.
  • Digital tools that improve environmental reporting, regulatory compliance and resource management.

Projects that integrate monitoring technologies with practical farm management solutions are particularly encouraged.

Funding Available and Project Requirements

Defra has allocated up to £28 million to support collaborative innovation projects.

Individual projects must meet the following requirements:

  • Total project costs: Between £1 million and £5 million.
  • Research category: Industrial research.
  • Project duration: Up to 36 months.

Projects must be delivered in the UK, with the majority of funding spent within the UK. They must also demonstrate how their outcomes will benefit farmers, growers or foresters in England.

Grant Funding Rates

For organisations undertaking commercial or economic activities, the maximum grant contribution depends on business size.

Organisation size

Maximum funding rate

Micro and small businesses

Up to 70%

Medium-sized businesses

Up to 60%

Large businesses

Up to 50%

Who Can Apply?

The competition is open to UK-registered businesses of any size, including established commercial businesses, sole traders and partnerships.

Projects must be collaborative, with a UK-registered business acting as the lead organisation.

Eligible collaborators include:

  • UK-registered businesses of any size.
  • Academic institutions and universities.
  • Research and technology organisations (RTOs).
  • Charities and not-for-profit organisations.
  • Public sector organisations.

To qualify, the consortium must meet several conditions:

  • The lead organisation and at least one other partner must request funding.
  • No single organisation can account for more than 70% of the total project costs.
  • Applicants must explain the purpose of the collaboration and how responsibilities will be shared.
  • All funded organisations must undertake their project activities in the UK.

Application limits: An organisation can lead only one application. A lead applicant may also participate as a collaborator in up to two additional applications.

Subcontractors are permitted, including overseas subcontractors where a clear justification is provided.

The competition also requires that at least 50% of the total grant funding requested by farmers, growers and foresters is allocated to those geographically based in England.

Key Dates

Competition opens: 19 November 2026

Competition closes: 28 January 2027

How Inventya Can Help

The Healthy Soils and Water for a Sustainable Environment competition offers an opportunity for businesses and research organisations to develop innovative solutions that address agricultural productivity, environmental sustainability and climate resilience.

However, securing funding requires a strong collaborative proposal, a clear technical development plan and convincing evidence of environmental and commercial benefits.

Inventya's support includes:

  • Eligibility and project assessment: Evaluating your proposed innovation against the competition's objectives, scope and funding requirements.
  • Consortium development: Supporting the identification of suitable project partners and the development of a clear collaborative structure.
  • Grant application development: Preparing a competitive application that demonstrates technical innovation, commercial potential and measurable environmental benefits.
  • Market research and commercialisation planning: Developing market assessments, business models and routes to market that support adoption across the agricultural sector.
  • Environmental impact planning: Helping define measurable environmental outcomes, sustainability indicators and appropriate assessment approaches.
  • Project budgeting and financial planning: Supporting the preparation of eligible project costs, funding allocations and financial justifications.
  • Application review and interview preparation: Reviewing proposals against assessment criteria and helping applicants prepare for the interview stage.

With experience in innovation funding, commercialisation and collaborative R&D projects, Inventya can help businesses and research organisations develop strong proposals that turn sustainable agricultural innovations into commercially viable solutions.

Our experts can assess your eligibility in minutes — book your free consultation today!
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