The Paludiculture and Wetter Farming Fund: A New Chapter for England’s Lowland Peat

England’s lowland peat is entering a new era. With the launch of the Paludiculture and Wetter Farming Fund, Natural England and Defra are backing a shift toward productive, rewetted landscapes that cut emissions, slow peat loss, and open the door to new markets for crops like Phragmites, Typha and Sphagnum. The PWFF is more than a grant scheme, it’s an invitation to redesign farming systems for a wetter future while keeping land in use and livelihoods intact.

The recording from the PWFF webinar on 7^th July is available here

England’s lowland peat is at a crossroads. For decades, drainage‑based agriculture has delivered food security, but at a steep environmental cost. As the PWFF Webinar Presentation notes, “the drainage of lowland peat is responsible for 85% of England’s total GHG emissions from peat.” Rewetting these landscapes is no longer a niche idea, it is a national priority.

The newly launched Paludiculture and Wetter Farming Fund (PWFF) marks a major step forward. Building on the momentum of the Paludiculture Exploration Fund (PEF), PWFF aims to accelerate the transition toward productive, rewetted peat systems that deliver climate benefits, support biodiversity, and sustain farming livelihoods.

This blog unpacks the fund’s purpose, priorities, and opportunities for farmers, researchers, and innovators across England.

Why Wetter Farming Matters

Rewetting peatlands is one of the most effective ways to reduce greenhouse gas emissions, halt peat soil loss, and slow land subsidence. But crucially, wetter farming is not about abandoning production. As the presentation emphasises, rewetting “sustains livelihoods by keeping land in production.”

The PWFF supports two complementary pathways:

Theme 1: Market‑Ready Paludiculture Crops

Focusing on three high‑potential species:

• Phragmites (Common Reed)

• Typha (Bulrush)

• Sphagnum moss

These crops have diverse commercial applications—from construction materials to bioenergy, fodder, and high‑value growing media. According to the 2025 Defra report cited in the webinar, Typha and Phragmites are likely to be in greatest demand, while Sphagnum commands high market value.

The presentation highlights the scale of future opportunity: raw materials for industry alone could require 64,120 hectares, with growing media, fodder, bioenergy, and construction materials adding tens of thousands more.

PWFF aims to push these crops further along the value chain—toward certification, cost reduction, and commercial readiness.

Theme 2: Food Crops at Higher Water Tables

This theme supports conventional food production—direct human consumption or livestock systems—adapted to wetter soils. It focuses on:

• Hydrological investigation

• Agronomy support

• Field trials

• Machinery innovation

The goal is to redesign farm systems so that food production can continue with “minimum drainage requirement”, reducing emissions while maintaining output.

Building on the Paludiculture Exploration Fund (PEF)

The PWFF is not starting from scratch. The PEF (2023–2026) laid essential groundwork by:

• Developing specialist machinery

• Establishing crop trials and product pipelines

• Creating farm‑focused business cases

• Advancing research on GHG mitigation

The PWFF now scales this work, with tighter crop focus and clearer market pathways.

What the PWFF Funds

The fund supports R&D across the entire market value chain, including:

• Business model development

• Hydrological investigation

• Agronomy and field trials

• Machinery development

• Harvesting and processing

• Product and market development

Both themes share many of these steps, though Theme 2 places heavier emphasis on hydrology and agronomy, while Theme 1 leans toward processing and market readiness.

Who Can Apply?

Eligible applicants include:

• Farmers and landowners

• Businesses and commercial enterprises

• Charities and not‑for‑profits

• Academic institutions

• Local authorities and public bodies

Natural England, Defra, the Environment Agency, and the Forestry Commission cannot apply, but their land can be used, and they may collaborate.

All projects must take place on lowland peat soils in England, defined in the presentation as:

• Below the moorland line

• >20% organic matter

• ≥30 cm depth

Product development can occur anywhere in England, and paludiculture crops may be sourced internationally if domestic supply is insufficient.

Funding, Timelines, and Expectations

The PWFF provides £10 million over four years, with projects running until December 2029.

Key dates:

• Opens: 26 June 2026

• Deadline: 17:00, Friday 21 August 2026

• Likely start: November 2026

The fund can cover 100% of eligible costs, though match‑funding strengthens value‑for‑money assessments.

Grant holders must commit to:

• Quarterly progress calls

• Quarterly reports and finance claims

• Annual reporting

• Site visits

• Monitoring by external contractors

As the presentation explains, reporting ensures “risks are flagged up early and changes captured.”

What Makes a Strong Application?

Natural England emphasises several priorities:

1. Collaboration

While not mandatory, collaboration is strongly encouraged. The presentation notes: “Collaboration is key!” Applicants can use the consortium database at www.paludiculture.org.uk to find partners.

2. Evidence Building

Projects should meaningfully advance understanding of:

• Practical barriers

• Technical challenges

• Commercial viability

• Environmental impacts

3. Minimising Drainage

Proposals must demonstrate how they will reduce reliance on drainage systems.

4. Value for Money

Match‑funding, carbon reduction potential, and scalability all strengthen applications.

5. Theme Alignment

Applications will be rejected if:

• Theme 1 does not include Phragmites, Typha, or Sphagnum

• Theme 2 does not include a food crop or livestock‑related system

If applying for both themes, each is assessed independently.

What Success Looks Like

Natural England will evaluate projects based on how well they improve the evidence base, progress value‑chain development, and identify next steps for wider adoption. Successful projects will contribute to:

• Reduced GHG emissions

• Reduced peat loss and subsidence

• Increased biodiversity

• Continued productive use of rewetted peat

The long‑term vision is a mosaic of land uses, from regenerative vegetable farming to paludiculture biomass, wetland restoration, water storage, and even solar or indoor farming.

A Turning Point for Lowland Peat

The PWFF represents a major opportunity to reshape England’s lowland peat landscapes into systems that are productive, resilient, and climate‑positive. Whether you’re a farmer exploring wetter cropping systems, a researcher developing new machinery, or a business building markets for paludiculture products, this fund offers a pathway to meaningful impact.

Applications close 17:00, 21 August 2026.

For questions, Natural England directs applicants to Defra’s eSourcing portal (Atamis).

This is a pivotal moment for peatland innovation. Let’s make it count.