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You must read and meet the requirements detailed in this section as these are mandatory for CS Capital Grants (SFI pilot) Agreement Holders.

For 2022, there are two separate CS Capital Grants offers:

• CS Capital Grants (SFI pilot) which is only available to Sustainable Farming Incentive (SFI) pilot participants on land being used for the SFI pilot

• 2022 CS Capital Grants which SFI pilot participants can also apply to on land which is not being used for the SFI pilot.

There are some differences between CS Capital Grants (SFI pilot) and 2022 CS Capital Grants. Where there is a difference, that is explained in this supplement. If there isnt a difference, you must read the relevant section in the 2022 CS Capital Grants manual as identified in this supplement.

CS Capital Grants (SFI pilot) are two-year standalone capital grants available under CS. There are 29 capital items available to help you undertake the actions for the standards in your SFI pilot standards agreement.

As an SFI pilot participant, you can only apply for CS Capital Grants (SFI pilot) on land parcels that are:

• included in your SFI pilot standards agreement; or

• arable land or improved grassland (between 0.1 ha and 0.5 ha) that is being used to support delivery of the Farm woodland standards optional action to Expand your woodland. This land will not be in your SFI pilot standards agreement but is adjacent to established woodland included in the Farm woodland standard. To find out what improved grassland is, read the Farm woodland standard guidance on GOV.UK.

These land parcels are only eligible for CS Capital Grants (SFI pilot). You must not include these land parcels in a 2022 CS Capital Grants application.

If you have other land that is not eligible for CS Capital Grants (SFI pilot), you can include it in a separate application to 2022 CS Capital Grants if it is eligible. Read Section 3 of the 2022 CS Capital Grants manual for more information.

The capital items you can apply for in CS Capital Grants (SFI pilot) will depend on which standard(s) are in your SFI pilot standards agreement. Each standard has specified capital items you can choose from. This is explained in section 2.1 of this supplement.

The available capital items are split into three groups:

• Boundaries, Trees and Orchards

• Water Quality

• Air Quality

The maximum grant available for any CS Capital Grants (SFI pilot) application is 60,000. However, there is a limit of 20,000 within each item grouping as shown below. These limits are applied separately if you also apply for 2022 CS Capital Grants on land that is not eligible for CS Capital Grants (SFI pilot).

For both CS Capital Grants (SFI pilot) and 2022 CS Capital Grants, you can submit an application for the eligible land parcels you manage under each Single Business Identifier (SBI). An SBI can have an agreement under CS Capital Grants (SFI pilot) and 2022 CS Capital Grants at the same time, as they are separate offers. You cannot apply for capital items on land parcels in an existing capital grants agreement until the capital works are completed and you have submitted your final claim.

You can submit a CS Capital Grants (SFI pilot) application from 8 February 2022. Applications will remain open until the funding is allocated. If we are oversubscribed and it is necessary to close applications, we will publicise this date, including on GOV.UK, giving you 6 weeks notice.

It is only possible for you to apply for CS Capital Grants (SFI pilot) online in the Rural Payments service. You can access the application via the Environmental Land Management area in the Rural Payments service. Read section 4 of this supplement for information on how to apply.

If your application is successful, we will offer you a 2-year, standalone CS Capital Grants (SFI pilot) agreement. This agreement is separate to your SFI pilot standards agreement, with its own terms and conditions. If you accept the agreement offer, you will enter into an agreement with RPA. The terms of your CS Capital Grants (SFI pilot) agreement will apply.

Your CS Capital Grants (SFI pilot) agreement will usually start from the first day of the following calendar month after you have accepted the agreement offer. The exact start date of the agreement will be set out in the Agreement Document.

Once your CS Capital Grants (SFI pilot) agreement starts, you can begin your capital items work, including ordering and paying for materials. Any capital items work you begin before your CS Capital Grants (SFI pilot) agreement starts will not be eligible for this capital items funding.

You may need to keep evidence and provide it when requested. Read section 6 of this supplement, the scheme Terms and Conditions and check the GOV.UK Countryside Stewardship grants (known as grants finder) for the evidence and record-keeping requirements of grants before you apply for them.