Guidance: Tree Production Capital Grant

Forestry Commission

December 5
08:00 2023

About the Tree Production Capital Grant

The Tree Production Capital Grant (TPCG) is now open for applications. The TPCG is a competitive grant, which provides funding to help tree nurseries and seed suppliers invest in projects which improve, expand, automate or mechanise their operations. This will help improve the quantity, quality, diversity, and biosecurity of domestic tree supply.

The government aims to at least treble tree planting rates in England by 2025, and has set legally binding targets to increase tree and woodland cover to 16.5% of total land area by 2050. Meeting these planting targets domestically will require a corresponding increase in UK production of tree planting material. The TPCG supports projects that will better equip nurseries to supply the trees required for new woodlands and tree planting projects. The grant forms part of the Governments Nature for Climate Fund.

As well as enhancing the quantity of trees produced, we need to enhance the quality and diversity of trees produced. This will enable us to plant resilient treescapes that support biodiversity and are resilient to stresses such as climate change and pests and diseases. This means facilitating the supply of diverse planting material from a range of species and provenances. Stocking material should be of the highest possible quality to reduce planting losses and ensure the delivery of healthy trees thriving in the landscape.

The fund aims to help suppliers increase their domestic production, efficiency, and resilience. It has been designed to complement the Tree Production Innovation Fund, which provides support for research projects that will enhance UK tree production methods.

The grant is open to tree and tree seed suppliers of all sizes, as well as new entrants looking to diversify into the sector.

Read ourcase studyto find out how Cutlers Wood Ltd upscaled tree production through mechanisation to meet customer demand with TPCG funding.

What is the deadline for applications?

The deadline for applications is 11.55pm on Tuesday 30 January 2024. Applications received after the deadline will not be considered.

Sign up to Tree Production Capital Grant webinar

We are hosting a Tree Production Capital Grant: how to apply webinar at 2pm on Wednesday 10 January 2024. During this session, applicants will have the opportunity to ask questions about the TPCG application and evaluation processes. If you would like to attend, please register: Tree Production Capital Grant: how to apply webinar.

What funding is available?

Up to 2.5 million of funding is available through the Tree Production Capital Grant, subject to sufficient high-quality bids being received.

TheTPCG provides 50% funding for projects up to a maximum grant value of 175,000.

You should consider the source of your match funding before applying and explain this in your application. You may not source match funding from another Nature for Climate Fund (NCF) funded grant.

Example projects suitable for funding could include:

  • investments in machinery such as transplanting systems and grading machines
  • improved polytunnel infrastructure and irrigation systems
  • biosecurity through improved water treatment and refrigeration equipment
  • seed processing or storage equipment

You may submit no more than one bid during each funding round.

Funding is available for the 2024-2025 financial year only. All items must be received and work completed between 1 April 2024 and 27 March 2025. Before applying, please make sure you are confident that you can complete all activities and receive all items before this date. Any spend after this date will not be eligible to claim for.

Funding will be split into 2 streams:

  • Stream A: projects valued between 10,000 and 100,000
  • Stream B: projects valued at greater than 100,000

Projects must have a minimum total cost of 10,000 to be eligible.

Funding Stream Project Value Funding Available (50%)
A 10,000 to 100,000 5,000 to 50,000
B >100,000 >50,000 to 175,000

Eligible costs that may be claimed for include:

  • costs of equipment and machinery purchased
  • delivery and shipping costs of items purchased
  • personnel costs related to the construction or implementation of the items purchased at the applicants site of operation

The following expenditure is ineligible:

  • retrospective funding for work already carried out or to be carried out before a grant agreement is signed
  • maintenance costs of the items purchased
  • any training required for staff to make use of the items purchased
  • trees of tree seed or to be delivered as the outputs of the project proposal
  • consumables, for example compost or fertiliser

Please be aware that the grant is paid in arrears. In order to claim for an item, you must have purchased and received it. Therefore, please make sure you are able to purchase items up front before applying.

Am I eligible?

To be eligible for funding, you must be UK-based and will need to demonstrate how the grant will be used to increase English tree seed or sapling supply.

Applicants to the TPCG could include:

  • private sector nurseries and seed suppliers
  • public sector organisations such as Local Authorities
  • new entrants to forestry from horticulture or agriculture
  • environmental NGOs
  • community tree nurseries

The grant is open to forestry nurseries as well as those which produce amenity, fruit, or nut trees.

Forestry England and Forest Research are not eligible for funding under theTPCG.

Consortium applications

You are welcome to apply for the TPCG in partnership with other organisations. In your application you should identify which organisation will be lead organisation.

If your application is successful, the lead organisation will become the sole agreement holder and will be the sole recipient of grant funding upon receipt of valid claims. They will be responsible for the undertakings and obligations detailed in any grant agreement, in line with Terms and Conditions of funding. The contractual arrangements held between the lead organisation and their collaborators are not the responsibility of the Forestry Commission. The lead organisation will have sole responsibility for onward disbursal of grant funding to collaborators, for example.

How do I apply?

To apply to the TPCG, you must submit a completed Application Form and Finance Spreadsheet to by 11.55pm on Tuesday 30 January 2024. A single stage application process will be followed. This is a competitive grant and so it is possible that not all eligible applications will be funded.

The application form, finance spreadsheet and detailed guidance on how to apply can be found in the Guidance to Applicants on theTree Production Capital Grant Application Form page.

In the application form, you will be asked to provide details about:

  • the project and the outputs expected
  • how the project aligns with the scope of the grant and meets the aim to increase the quality,quantity, diversity and/or biosecurity of tree or tree seed supply in England
  • your approach to delivering the project and any delivery risks
  • the cost of the project and how it represents value for money your organisation and for the taxpayer
  • the source of your match funding
  • whether you have received, have applied for, or intend to apply for any other government funds

In your Finance Spreadsheet, you should itemise project costs and funding applied for. Where possible, please base costs on quotes. All costs and financial details should be in Sterling and should be exclusive of any recoverable VAT.

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