UK Government Tree Production Capital Grant

The Tree Production Capital Grant (TPCG) is a UK Government grant that is aimed at supporting tree nurseries and tree seed suppliers to improve the productivity and resilience of their operations and enabling a reliable supply of diverse, biosecure, and high-quality trees to England. It is a competitive grant, which provides funding to help tree nurseries and seed suppliers invest in projects that improve, expand, automate or mechanise their operations.

The funding of the Tree Production Capital Grant (TPCG) aims to increase the resilience and productivity of the UK’s tree production sector enabling a reliable supply of diverse, biosecure, and high-quality trees to England.

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The United Kingdom government has set legally binding targets to increase tree and woodland cover to 16.5% of total land area by 2050. Meeting these planting targets requires a reliable domestic supply of tree planting material. The TPCG is designed to support tree and tree seed suppliers to meet this demand by improving their productivity and resilience. It also aims to enhance the quality and diversity of trees produced. This will enable us to plant resilient and productive treescapes that support biodiversity and are resilient to stresses such as climate change and pests and diseases.

The Tree Production Capital Grant (TPCG) is open to forestry nurseries as well as those that produce amenity, fruit, or nut trees and tree rootstock. It is intended to support the production of trees available for planting, excluding Christmas trees. Forestry England and Forest Research are not eligible for funding under the TPCG.

Up to £2 million grant funding is available. The grant is open to tree and tree seed suppliers of all sizes, as well as new entrants looking to diversify into the sector.

Who can apply for the Tree Production Capital Grant (TPCG)

To be eligible for funding, applicant must be UK-based and will need to supply or plan to supply trees or tree seeds to England.

You can be any of the following:

1. Private sector nurseries and seed suppliers
2. public sector organisations such as local authorities
3. New entrants to tree production from horticulture or agriculture
4. Environmental NGOs
5. Community tree nurseries

Funding Available

The Tree Production Capital Grant provides 50% funding for projects up to a maximum grant value of £175,000. Projects must have a minimum total cost of £10,000 (£5,000 grant value) to be eligible. Funding is available for the 2025-2026 financial year only and agreements are likely to be issued in August 2025.

Note that you should consider the source of your match funding before applying and explain this in your application. You cannot source match funding from another Defra funded grant.

All items must be received and work completed between the start of your agreement and 27 March 2026. Before applying, make sure you are confident that you can complete all activities and receive all items between these dates as a

Project eligibility

Eligible projects for funding include:

1. Investments in machinery, such as transplanting systems and grading machines
2. olytunnels and associated infrastructure
3. Rainwater harvesting and irrigation systems
4. Buildings, such as packing sheds or coldstores
5. Biosecurity through improved water treatment and refrigeration equipment
6. Seed processing or storage equipment
7. Costs for purchasing or developing nursery management software
8. Long-life trays

Kindly note that you can only submit one bid during each funding round. However, your bid can include multiple different investments.

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What you can claim for

You can claim for these eligible costs :

1. Equipment and machinery
2. Delivery and shipping costs of items purchased
3. Personnel costs related to the construction or implementation of the items purchased at the applicant’s site of operation
4. One-off costs for purchasing or developing software

What you cannot claim for:

1. Retrospective funding for work already carried out or to be carried out before a grant agreement is signed
2. Maintenance costs of the items purchased
3. Training for staff to use items purchased
4. Trees or tree seed to be delivered as the outputs of the project proposal
5. Consumables, for example compost, fertiliser or single use trays/containers
6. Software licenses or subscription fees
7. Items bought on hire purchase or on lease

How to apply

Send email to tpcg@forestrycommission.gov.uk by 11.55pm on 25 June 2025. The email shall contain:

1. Application form
2. Finance spreadsheet
3. Evidence of financial viability (when applicable)
4. Business plan (when applicable)

Source: https://www.find-government-grants.service.gov.uk/grants/tree-production-capital-grant-1