From the Dragons’ den to Defra’s: new government funding to boost agri-tech

The Department for Environment, Food and Rural Affairs has launched a new £12.6 million funding package to support agri-tech innovation. It will be a ‘Dragons Den’-style process comprising two competitions. Forming part of the government’s Farming Innovation Programme, these competitions will reward the businesses that can offer the most innovative solutions to systemic challenges in the agricultural sector, such as rising costs and environmental pressures.

This initiative represents a progression of the government’s New Deal for Farmers and is a signal that agri-tech is a core component of its food security and rural growth strategy. Whilst the government has already pledged to allocate £11.8 billion to sustainable farming and food production over the next parliament, this additional funding arrives at a politically sensitive moment for the agricultural industry. The government’s relationship with the agricultural community has been tested during Labour’s first year in office, particularly following widespread backlash against the 2024 autumn budget’s proposed changes to inheritance tax. Against this backdrop, increased funding is not only an economic stimulus to encourage technological development, but also an attempt to reset the government’s political relationship with the agricultural sector. As a visible commitment to supporting innovation-led growth, it indicates that the government is listening to the sector’s demands for long-term solutions rather than short-term fixes.

The funding itself will be delivered through two competitions set to open from mid-September. The Small R&D Partnerships competition, launching on 15 September, will offer up to £7.8 million to support later-stage projects that are near commercial readiness. The strongest bids will be those that are able to demonstrate how their product or service will improve productivity, sustainability, progression, and resilience, as well as having a clear avenue to market upon. The second competition, allocating up to £4.8 million for early-stage ideas, will open on 13 October and is designed to assist developers in scaling up their project. Both competitions will be carried out in partnership with Innovate UK.

This is positive news for businesses in the agri-tech sector. The government is actively seeking to fund scalable, practical technologies that can solve the problems straining today’s agricultural sector. Rather than simply financing projects that are market-ready, the government is willing to fund the development of ideas. It solidifies the role that agri-tech plays in enhancing sustainability and boosting rural productivity via technological innovation.

Ultimately, this announcement acts as a timely reminder that agricultural innovation is  recognised by the government as a mechanism for economic growth and as a frontier industry in the UK’s industrial strategy. As the government seeks to establish a balance between regulation, business support, and long-term agricultural resilience, initiatives like these will play a central role in shaping the next generation of British farming.

If you wish to discuss the government’s agri-tech policy or how to access this funding, please reach out to thea@gkstrategy.com.