Defra Farming Innovation Investor Partnership

Key Features

UK registered micro, small and medium sized enterprises can apply for a share of up to £5 million to develop innovative farming solutions. This must align with private investment from selected investor partners.

Programme:     Innovate UK

Award:     Share of up to £5 million

Opens: 11th May 2026

Closes: 17th Jun 2026

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Grant Overview

Innovate UK are investing and the Department for Environment, Food and Rural Affairs will invest up to £5 million in innovation projects.

Grant Scope

The aim of this competition is to develop ambitious late-stage innovation solutions, technologies, systems or approaches that make significant steps towards improving productivity, profitability, increase sustainability and resilience. Help the agriculture sector move towards achieving net zero emissions by 2050 and support commercialisation of late-stage experimental development projects that are close to market.

Projects must address a significant industry challenge or opportunity in at least one of the industry subsectors:

  • livestock
  • plants
  • novel food production systems
  • bioeconomy and agroforestry

Eligibility Criteria

To be eligible for this competition, your project must have total costs of between £750,000 and £3 million with projects not starting before 1st April 2027 and lasting up to 18 months. All project work must be carried out in the UK with results exploited from or in the UK. You must be able to demonstrate how your project will benefit farmers, growers or foresters in England.

Lead organisation: To lead a project, organisations must be a UK registered micro, small or medium sized enterprise seeking private financing of at least twice the amount of grant funding. Organisations must be prepared to negotiate heads of terms for an aligned private investment.

Subcontractors: Subcontractors are allowed in this competition. Subcontractors can be from anywhere in the UK. Overseas subcontractors can be used, but you must state why UK subcontractors could not be used in your application.

Number of applications: As SME can only lead on one application

Previous applications: You can use previously submitted applications in this competition

Grant Exclusions

Innovate UK will not fund the following projects:

  • Projects that have not been carried out by a single micro, small or medium sized enterprise
  • Projects that are collaborative research and development projects or not part of a company’s growth plan.
  • Projects unable to prove there is potential for return on investment and growth
  • Projects that are equine specific, involve wild caught fisheries, aquaculture for fish production or human consumption, cellular expression of proteins or cultivated meat, cellular or acellular production systems, fermentations systems for bacteria, yeast or fungi for human consumption
  • Projects that are to produce crops or plants for medicinal or pharmaceutical use
  • Projects that do not benefit farmers, growers or foresters in England

Grant Funding

Defra has allocated up to £5 million to fund innovation projects in this competition. The competition is delivered by Innovate UK and funding will be in the form of a grant.

If your organisation’s work on the project is commercial or economic, your funding request must not exceed the limits below. These limits apply even if your organisation normally acts non-economically but for the purpose of this project will be undertaking commercial or economic activity.

The balance between your total eligible project costs and the amount of grant awarded must be funded by the organisation receiving the grant.

For experimental development projects which are nearer to market, you can get funding for your eligible project costs of:

  • up to 45% if you are a micro or small organisation
  • up to 35% if you are a medium sized organisation

Aligned private investment

You must agree the private investment through a lead investor and reach heads of terms by 2 December 2026.

The aligned private investment:

  • must provide you with suitable capital at least twice the amount of the grant requested to complete your project, support company growth and scale ambitions
  • can be directed for use in your company, whereas the grant is to support the project only
  • can be used to fund additional costs typically ineligible for support by Innovate UK
  • must be provided under commercial terms negotiated with the lead investor and not Innovate UK

The investment can be in the form of either direct equity investment or a convertible loan. It must come from a lead investor from the pool of investors associated with this programme. The lead investor may decide to syndicate with other investors from within or outside of the pool.

 

For further information on this competition, please see full details.

Interested in applying for this competition?

Book an appointment to speak to one of our advisors to discuss your eligibility to apply for this Grant Funding opportunity.