Rainwater Harvesting Agricultural Grants

All data and information is correct as of July 2025 

Harvesting the Rain for Resilient Farming

Water is fundamental to farming, yet British farmers are increasingly challenged by water scarcity and rising costs. Recent climate shifts have brought record dry spells – for instance, 2025 saw the driest spring since 1974 – and projections suggest extreme droughts could become more frequent. Even in the UK’s famously wet climate, summers can strain water supplies, impacting crops and livestock. Rainwater harvesting offers a smart solution: capturing and storing rainfall from roofs or yards for later use. Not only does this improve a farm’s water security, it can also cut costs on mains water and reduce environmental impacts. Recognising these benefits, governments in England, Scotland, and Wales are encouraging farmers to install rainwater harvesting systems – with grants and funding schemes available to help cover the costs.

Why Rainwater Harvesting Matters for UK Farms

Rainwater harvesting is more than just placing a barrel under a downpipe – modern farm systems can collect thousands of litres from barn roofs or glasshouses and store it for all kinds of agricultural uses. The benefits of doing so are compelling:

Resilience to Drought

Capturing rain helps farms endure dry periods by providing an independent water reserve. With climate models predicting that average summer rainfall in the UK could drop by around 25% by 2050, stored rainwater can be a lifeline when ponds dry up or hosepipe bans kick in. It offers a margin of safety in times of drought, ensuring animals have water to drink and crops can be irrigated when rainfall is scarce.

Cost Savings

Rainwater is free. By installing tanks and pumps to use rainwater, farms can significantly reduce their mains water bills. Treated mains water is expensive and its price is rising year-on-year. Every litre of rainwater used for cleaning yards, washing equipment or watering stock is a litre of paid-for water saved. Over time, these savings add up and help the farm’s bottom line.

Environmental and Compliance Benefits

Using rainwater eases pressure on rivers and aquifers, as less abstraction (pumping from natural sources) is needed. This is crucial in dry regions like eastern England where water resources are under stress. Moreover, keeping clean rainwater separate from contaminated run-off on farms is a key pollution prevention measure. Proper guttering and storage stop clean rain from flushing manure or slurry into watercourses. This improves water quality downstream and helps farmers meet environmental regulations. In fact, many grants specifically aim to reduce diffuse water pollution by funding rainwater infrastructure for yards and manure storage areas.

Multi-Purpose Farm Use

Harvested rainwater is surprisingly versatile. It’s naturally soft (free of limescale), making it ideal for washing machinery, spraying crops, and even mixing with agrochemicals (rainwater’s neutral pH can improve the efficacy of some pesticides compared to hard tap water). It’s perfectly suited for yard washdowns, irrigation, and even livestock drinking with appropriate filtration.

Simple and Sustainable

Installing a rainwater harvesting system is usually straightforward and low-maintenance. Gutters and downpipes channel rain into storage (tanks either above or below ground), which is then pumped to where it’s needed. Filters or first-flush diverters remove debris. As a bonus, rain harvesting promotes sustainability – it’s a visible step towards water self-sufficiency that today’s consumers and supply chain auditors appreciate.

In short, harvesting rainwater helps future-proof farms against a changing climate while delivering immediate economic and environmental rewards. It’s no wonder that governments and even water companies are keen to help farmers invest in these systems. So, what support is out there?

Grants and Funding Support in England

England’s agricultural policy has placed a strong emphasis on water efficiency and environmental improvements in recent years – and this is reflected in the grants available. Farmers in England can tap into several funding streams to subsidise rainwater harvesting projects:

Farming Equipment and Technology Fund (FETF)

This is a grant scheme under the Farming Investment Fund, aimed at helping farms invest in greener, more efficient kit. The FETF has dedicated funds for water management equipment – including rainwater harvesting tanks and related technology. For example, a recent FETF round offered fixed grants towards rainwater storage tanks (about £940 for a tank over 5,000 litres capacity, or £3,678 for a 50,000+ litre tank) and even contributed towards UV water treatment units. These grants (typically up to a 40% contribution or set item cost) can significantly offset the installation cost of large-volume collection systems. Importantly, rainwater harvesting has been included as an eligible investment in the FETF’s productivity theme, meaning virtually any livestock or arable farm could apply. Application windows for FETF are periodic; farmers need to be registered on the Rural Payments system and submit applications online. The process is competitive but relatively straightforward, with successful applicants getting a grant offer and then purchasing the equipment before claiming the funding.

Countryside Stewardship Capital Grants

Even as new schemes roll out, the existing Countryside Stewardship (CS) program in England continues to fund on-farm infrastructure that benefits the environment. Through CS (including the Mid-Tier and standalone capital grants), farmers can apply for fixed payments for specific rainwater harvesting items. These include installing roof guttering and downpipes on farm buildings (grant code RP16) to catch clean rain, building above-ground water storage tanks (RP18) or underground tanks (RP17) for collected rain and adding first-flush diverters or filters to keep leaves and debris out of your tank (RP19. For example, the CS grant will pay around £11-12 per metre of guttering and £350 per cubic metre of an underground tank installed. The aim is to separate clean and dirty water on farms – preventing clean rain from flooding dirty yards and capturing it for productive use. To access these grants, you typically need sign-off from a Catchment Sensitive Farming officer and to be in a target area for water quality improvement. It’s worth the paperwork: many farms have effectively received funding for new roofs, gutters, and tanks that solve yard runoff issues while providing a valuable water resource.

Water Management Grant (Large Projects)

For farms thinking really big – like constructing a reservoir or extensive irrigation system – England has also offered larger capital grants. Under DEFRA’s recent “Plan for Water”, £10 million was earmarked specifically to help fund farm water storage and efficient irrigation equipment. This has taken form in the Farming Transformation Fund: Water Management grants, which provide sizable co-funding (often ~40%) for building on-farm reservoirs, rainwater harvesting lagoons, pumping stations, and pipework. These schemes recognise that in the long run, more on-farm storage is critical to cope with droughts. While the application is more involved (business plans, planning permission, etc.), the grant can run into tens of thousands of pounds for ambitious water projects. If your farm could benefit from a winter-fill reservoir or a giant water tank, keep an eye on announcements for these transformation funds on the Gov.uk site.

Other English Funding Sources

Outside of government, some regional partnerships and water companies offer support. One example is Severn Trent Water’s Environmental Protection Scheme (STEPS), which has provided match-funding to farmers in the Severn Trent catchment for infrastructure that protects water quality. Through STEPS, farmers could get up to around £5,000 matched for items like rainwater harvesting tanks or yard covers, in order to reduce runoff and nutrient pollution. Other water companies (United Utilities, Anglian Water, etc.) and local catchment groups occasionally run similar grant programs or free advisory services, so it’s worth checking what’s available in your area. These tend to be smaller pots of money, but they can cover things like installing guttering, diverting clean water away from slurry stores, or even providing rainfall storage for livestock yards, all of which help both the farmer and the water environment.

England’s offerings are evolving as agricultural policy shifts to the new Environmental Land Management schemes. The good news is that water efficiency and quality remain top priorities, so funding for rainwater harvesting is likely to continue in some form – be it through equipment grants, stewardship options, or one-off initiatives. Farmers should regularly consult the DEFRA farming grants bulletin ruralpayments.org or speak with an adviser to catch new opportunities.

Support for Rainwater Harvesting in Scotland

Scotland may be famous for its rainfall, but Scottish farmers can still benefit enormously from harvesting rain – especially in eastern regions which can be surprisingly dry, or for hill farms where a reliable water supply is a challenge. The Scottish Government has provided grants through rural development programs to encourage these investments.

Under the previous Scottish Rural Development Programme (SRDP 2014–2020), there were capital grants to improve farm water management and resource efficiency. For instance, some farm improvement grants allowed funding for upgrading water supplies or installing rainwater collection systems as part of broader environmental and business sustainability goals. One specific avenue was the Small Farms Grant Scheme, which aimed to help smaller or start-up farms invest in essential infrastructure. This scheme explicitly listed improvements to water amenities, including water storage and possibly rainwater tanks, among the eligible works. Guidance was a bit limited, so applicants were advised to check details with local rural advisers. But the takeaway is that even historically, Scottish policy recognised the value of rainwater harvesting in supporting farm viability and environmental stewardship.

Looking ahead, Scotland has launched a new initiative called the Future Farm Investment Scheme (FFIS). This is part of the post-2020 rural support framework and is designed to help farmers and crofters invest in equipment or infrastructure that delivers environmental and climate benefits. Rainwater harvesting projects would squarely fit within its objectives – which include improving resource efficiency and adapting to climate change. Notably, FFIS grants can cover up to 100% of the cost of on-farm capital investments that meet the scheme’s criteria. In other words, if you propose a rainwater collection and storage system that clearly enhances your farm’s sustainability (e.g. by reducing mains water use and runoff), you could potentially have the entire installation paid for by the scheme. The FFIS is competitive and capped by available budget, but it represents a generous opportunity. The 2025 application window runs mid-July to late August, and farmers need to apply via the Rural Payments service with details of their project.

Beyond FFIS, Scottish farmers in certain areas might also access support from local council schemes or water authorities for water efficiency measures. Additionally, crofters in the Highlands and Islands can use the Crofting Agricultural Grant Scheme (CAGS) for small-scale capital improvements, which could include water storage for livestock on crofts. As always, it’s wise to consult Scotland’s Rural Payments website or local agricultural offices for the latest grant information, since the programs are periodically updated. The key point is that Scotland is actively supporting investments that build resilience (and rainwater harvesting certainly does), so do take advantage of these funds if you’re planning to upgrade your farm’s water setup.

Support for Rainwater Harvesting in Wales

Welsh farmers, too, have access to funding that can help bring rainwater harvesting projects to life. Water management is a big part of Wales’s sustainable farming strategy, especially given the heavy rainfall in parts of Wales that can cause runoff issues. The grants in Wales have been geared towards improving water quality on farms and efficient use of resources.

One important scheme was the Farm Business Grant (FBG), which ran under the 2014–2020 Rural Development Programme. Within FBG, the Welsh Government introduced a dedicated Yard Coverings grant – essentially targeting improvements that keep rainwater clean and separate from dirty yard effluent. Under the Yard Coverings scheme, farmers could get support to install things like roofing over yards or manure stores, as well as rainwater harvesting equipment. In fact, the scheme’s technical guidance explicitly included funding for above-ground rainwater harvesting tanks (up to 10,000 L capacity) and below-ground tanks (up to 20,000 L), complete with the necessary guttering and filtration. This meant a typical Welsh dairy or beef farm could, for example, put up guttering on sheds and install a 10,000-litre tank to collect that water, with a significant chunk of the cost covered by the grant. The FBG was a popular scheme (offering 40% funding with grants from £3,000 to £12,000) and ran in application rounds. While the 2014–20 program is now closed, many Welsh farms took the opportunity to invest in rainwater collection through this route.

Under the new rural programme, Wales has introduced the Small Grants – Environment scheme, which focuses on capital works for environmental benefit. A recent theme of this scheme was “Water” (in 2023), where farms could get standard rate payments for items that improve water quality. Among these were “Rainwater Goods – Guttering” at roughly £9 per metre, and “Rainwater Goods – Downpipes” at about £15 per metre. In practice, this helps farmers add or upgrade gutters and downpipes on buildings to channel rainfall properly into storage or soakaways instead of dirty yards. By funding these small but crucial pieces of kit, the grant helps keep clean rain from causing dirty runoff – benefitting both the farmer (who can store the water) and the environment. The Small Grants scheme in Wales is application-based and typically opens for short windows, with a list of eligible items and fixed payments (so no complex quotes needed – you know what you’ll get per item). It’s a straightforward way to get support for those rainwater harvesting basics like collection pipework and tanks.

Looking forward, Wales is transitioning to a new Sustainable Farming Scheme which is expected to carry on the ethos of Glastir and other agri-environment schemes. We anticipate that water management will remain a priority area for support. If you’re farming in Wales, keep an eye on announcements from the Welsh Government’s farming grants pages and consider engaging with Farming Connect (which offers advice and sometimes funding guidance). They can help identify opportunities such as the Yard Coverings grant or any upcoming water-focused grants so you won’t miss out on funding to improve your farm’s rainwater usage.

Other Incentives and Resources for Farmers

Aside from the major government grant programs, there are a few other incentives and resources that UK farmers should be aware of when considering rainwater harvesting.

Tax Relief on Equipment

Investing in rainwater harvesting infrastructure may qualify for tax advantages. Under the UK’s capital allowance rules, many businesses can claim the cost of equipment against taxable profits. Specifically, rainwater harvesting systems have been eligible under schemes for water-efficient technology. Until recently, there was even a 130% “super-deduction” allowance for plant and machinery investments – meaning you could deduct more than the full cost of a qualifying asset. From April 2023, this reverted to the normal 100% Annual Investment Allowance for most equipment, but that still effectively makes such investments tax-free (up to the available limits). In plain terms, if you spend £10,000 on a rainwater tank and plumbing, you may reduce your taxable income by that full amount in the first year – a useful saving. Always check with your accountant, but don’t forget that the government, through the tax system, is giving you a nod to invest in things like efficient water storage.

Free Advisory Services

Sometimes the first step is knowing what to install and how. Across the UK, farmers can tap into advisory programs – often funded by governments or water companies – that provide expert advice on water management. For example, England’s Catchment Sensitive Farming (CSF) initiative offers free visits and plans for farms in high-priority areas for water quality. A CSF officer can advise on the best way to set up a rainwater harvesting system for your specific yard layout and help in navigating grant applications. In Northern England, projects under EU-funded schemes have helped upland farms design water storage to mitigate drought. In Scotland and Wales, similar guidance can be sought via Farm Advisory Service or Farming Connect respectively. These experts won’t install a tank for you, but their input can ensure you get a system that meets any regulatory requirements (like avoiding backflow into mains water) and maximises the benefit to your farm.

Community and Catchment Projects

In some areas, groups of farmers are working together on water resilience. Initiatives like Water Resources East and local catchment partnerships sometimes facilitate group funding bids – for example, a cluster of farms sharing grant funding to each build a rainwater storage or a small reservoir that serves all. While this is more collaborative and less common than individual grants, it’s worth considering if you have neighbours with similar needs; collectively you might secure support from environmental charities or government innovation funds. Even some National Parks authorities (such as in Wales) have grant pots for improving water management on farms as part of larger conservation goals.

A newly constructed on-farm reservoir in East Anglia. Larger-scale water storage projects – like winter-fill reservoirs or lagoon systems – are being supported by grants as UK agriculture adapts to drier summers. While not every farm will build a £3 million reservoir, even modest rainwater harvesting tanks help secure a strategic water supply.

Lastly, if you find that you don’t currently qualify for a grant, it’s still worthwhile to evaluate rainwater harvesting for the long-term savings and resilience it provides. Grants come and go, but water bills and climate pressures are here to stay. Many suppliers offer scalable systems, so you could start with a single tank and some guttering on a barn, and expand later when more funding or resources become available. The technology is quite modular, which means even a small initial setup can start saving you money and reducing your farm’s mains water usage immediately.

Harvest the Benefits of Rain – with a Little Help

Rainwater harvesting is a win-win for farms: you get a more secure and affordable water supply, and the environment benefits from reduced demand and cleaner runoff. It’s an age-old idea (who hasn’t put out a barrel to catch rain?), now boosted by modern pumps, filters and storage solutions to meet agricultural needs at scale. Crucially, adopting this sustainable practice in the UK has been made easier thanks to a range of grants and funding options. Whether you’re in England looking at an FETF application for a new water tank, in Scotland planning to tap into the Future Farm Investment Scheme, or in Wales getting support for yard guttering, there are avenues to help turn plans into reality.

By taking advantage of these programs, UK farmers can significantly cut the upfront cost of rainwater harvesting systems. That means a quicker payback and a stronger business case for doing the right thing. If you’re unsure where to start, reach out for advice, be it to a government farm adviser or to specialist companies (like us) who have experience in designing rainwater harvesting systems for agriculture.

In the end, capturing the rain that falls on your land is just good common sense. It cushions you against water shortages, trims your bills, and demonstrates your farm’s commitment to sustainability. With friendly funding available and expert support at hand, now is the perfect time to explore rainwater harvesting for your farm. Don’t let that precious water wash away – harvest it, use it, and let it fuel a more sustainable farming future.

Ready to get started? Feel free to contact our team for more information on rainwater harvesting systems tailored to your farm, and guidance on making the most of current grant opportunities. We’re here to help farmers turn a rainy day into a resource for the days of sunshine ahead!