Paludiculture and Wetter Farming Fund
The Paludiculture & Wetter Farming Fund (PWFF) is a new grant scheme funded by Defra and delivered by Natural England (NE). The grant offers the potential to unlock barriers to the development of paludiculture markets and wetter farming practices, maintaining the profitable use of lowland peatland whilst significantly reducing soil erosion, land subsidence, biodiversity loss and the greenhouse gas emissions associated with the current drained state required by conventional agricultural use.
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Contents
Summary
Background
Defra are investing in Paludiculture and Wetter Farming because the systematic drainage of lowland peatlands to create drier soils for conventional agriculture has resulted in soil erosion, land subsidence, biodiversity loss, and the carbon once stored in the peat being lost to the atmosphere, primarily as carbon dioxide.
The independent Lowland Agricultural Peat Task Force report (2023) concluded that the best option to return drained lowland peat soils to a healthy condition is by rewetting - safely and sustainably raising and managing water tables within the peat soil. This approach has implications for land use on lowland peat.
The Environmental Improvement Plan (2025) and Land Use Framework (2026) confirm the Government’s commitment to improving the condition of lowland peat soils, including through funding trials and innovation to support paludiculture and farming with higher water tables, while maintaining productive land use.
Scope/Aim
The Paludiculture & Wetter Farming Fund (PWFF) forms part of this approach. It supports the development and testing of commercially viable paludiculture and wetter farming systems that enable peatland to remain in productive use (particularly for food production) while reducing greenhouse gas emissions and helping to secure the long‑term viability of farming on lowland peat soils.
The expectation is PWFF will fund a range of different projects, helping to develop the evidence base and create the conditions for viable paludiculture and wetter farming enterprises in England.
Eligibility
Applicants for the competitive process will be expected to demonstrate that they have the capacity, experience, capability and knowledge to deliver the outcomes of the Paludiculture and Wetter Farming Fund
The eligibility criteria for suitable organisations are:
Evidence of organisational status: applicants, whether applying individually or as part of a wider consortium, must be a registered public, charitable or private organisation.
Economic viability of wetter peat soils: proposals must be focussed on tackling the barriers to developing commercially viable paludiculture and / or wetter farming on lowland peat soils in England
Agronomic expertise: experience of growing crops on peatland soils, whether within an organisation or consortium, is mandatory
Financial solvency evidence: Proven long-term financial solvency, with a demonstrable net income surplus for the last three financial years and the ability to manage cash flows.
Objectives
The focus of the grant offered through PWFF falls into two themes:
Theme 1: Market Readiness of Paludiculture crops: restricted to Phragmites, Typha and Sphagnum – emphasis on machine development for harvesting and processing the crop; getting the crop to market efficiently, producing higher value products and developing product certification.
Theme 2: Wetter Farming: restricted to systems producing food for human consumption which should already have an existing market. Support focused on the start of the market value chain i.e. determining peat properties; hydrological design and control; agronomy support at higher water tables including changes to crop choice and rotation design if required.
Land-based projects (including machinery development) must take place on lowland peat soils in England. Lowland Peat is defined as soil below the moor line, with at least 20% organic matter content and a depth of at least 30cm. Product development projects must be based in England, but the paludiculture crops used to develop the product can be sourced from further afield if sufficient supplies cannot be sourced in England.
Delivery indicators for the scheme will focus on the extent to which funded projects improve the evidence base for paludiculture and wetter farming. By the end of the scheme, success will be indicated by:
clearer understanding of the practical, technical, commercial and environmental barriers affecting the two themes;
the stage of development of different parts of the value chain;
the remaining evidence gaps and priorities for further work; and
the next steps needed to support wider adoption or market readiness.
Dates
Invitation to Apply (ITA) Open - 26 June 2026
Deadline for clarification questions from Applicants - 10 August 2026 17:00 BST
Deadline for application submission - 21 August 2026 17:00 BST
Evaluation of Applications - 24 August 2026 to 19 October 2026
Notification Letters Issued - 16 November 2026
How to apply
Apply via Defra e-Sourcing platform: Welcome