Autumn 2026

What Defra has announced about the Water Management Grant 2026

Funding and purpose. Defra has announced up to £15 million in total for the Water Management Grant Round 3 to support the construction of on-farm reservoirs in England. The aim is to improve on-farm water storage for crop irrigation during dry periods, with a focus on arable and horticultural businesses.

Application timing. On 2 November, Defra told Parliament it still planned to open applications in autumn 2026. It said the exact opening date for the Water Management Grant would be confirmed when guidance was published. As of 10 November 2026, we could not verify an opening date or find published Round 3 application guidance.

Details to check at launch. The guidance will confirm Water Management Grant eligibility, how much each business can claim, which project costs qualify and what evidence is needed. In particular check whether reservoir liner supply and installation, reservoir upgrades and any associated irrigation equipment are eligible.

Funding demand. The NFU reports that the £15 million budget is under review and could increase if demand is high. The announced figure is the total scheme budget for farm reservoir funding, not the amount available to each applicant.

Defra’s drought support announcement · November parliamentary update · Farmers Weekly · NFU Round 3 update

What the previous Water Management Grant round covered

Round 2 offered £35,000 to £500,000 per applicant business, covering up to 40% of eligible costs. At the full 40% rate, £87,500 in eligible costs would have qualified for the minimum grant, subject to approval. The grant was paid in arrears, so applicants needed to fund costs upfront before claiming.

Synthetic reservoir liners were explicitly eligible in Round 2, alongside items such as reservoir walls, fill pipework, pumps and spillways. Use these figures and examples for initial farm reservoir planning and budgeting. Round 3 grant limits, funding rates, eligible items, application stages and deadlines are still to be confirmed. Check the new guidance for any standalone irrigation equipment you plan to include.

GOV.UK Round 2 rules · NFU guide · The Farmer Network

How to prepare for farm reservoir funding

1. Estimate your irrigation demand. Note the crops, the area you plan to irrigate and the water storage capacity needed for crop irrigation in a dry season. Identify your proposed water source and when the reservoir could refill.
2. Check permissions early. Discuss your proposed on-farm irrigation reservoir site with the local planning authority and ask the Environment Agency whether abstraction licensing or reservoir safety requirements apply. If you rent the land, discuss the proposal with your landlord.
3. Build an itemised budget. Separate earthworks, reservoir liner supply and installation, and any pumps, pipework or other infrastructure. Include a cashflow estimate so you know how much you could fund upfront.
4. Keep quotes provisional. Round 2 required an accepted grant agreement and an agreed start date before applicants could place orders, pay deposits or start work. Check the Water Management Grant Round 3 rules before making any commitments.

Get a budget quote for your farm reservoir liner

If you’re planning an on-farm irrigation reservoir, contact Stephens Industries for an itemised reservoir liner budget quote covering liner supply and installation. Send your site location, approximate reservoir dimensions or capacity, and any drawings you have.

Check the GOV.UK funding guide for farmers for the official Water Management Grant Round 3 application window and eligibility rules.