The government will set out reforms to the Sustainable Farming Incentive, including new application windows and a greater focus on smaller farms, as ministers seek to reset relations with the agricultural sector.
The proposals will be outlined by Defra Secretary Emma Reynolds at the Oxford Farming Conference on Thursday 8 January and include changes aimed at improving access to farm support schemes and providing greater clarity over future policy direction.
A central element of the announcement is reform of the Sustainable Farming Incentive (SFI), which the government says will be simplified to provide more predictable delivery.
Two application windows are planned for 2026, with the first opening in June and prioritising smaller farms and those without an existing agreement, followed by a wider second round in September. Officials said further details will be published before the first window opens.
Speaking ahead of the conference, Reynolds highlighted the importance of agriculture to the country, saying: “Farmers are at the heart of our national life – for what you produce, the communities you sustain, and the landscapes and heritage you protect.” She added that “British farming is also a key growth sector we’re backing for the long term”.
Alongside SFI reform, the Defra Secretary is expected to announce a new £30m Farmer Collaboration Fund, to be delivered over three years, aimed at supporting groups of farmers to work together, share best practice and explore new business opportunities.
Reynolds will also acknowledge longstanding criticism of farm schemes, saying that “too often, they've been held back by bureaucracy” and adding: “We're changing that to a system that backs our farmers.”
She will set out plans for closer engagement with the sector through structures such as the Farming and Food Partnership Board. “We will work with you – through our new Farming and Food Partnership Board, through peer-to-peer networks, through community-led change, and through engagement on the detailed changes to SFI,” she will say, adding that farmers will have “the certainty you need to plan – clear budgets, clear timelines, clear future roadmap”.
Industry bodies have broadly welcomed the clarity provided by the announcements, while stressing that access and delivery will be key. Country Land and Business Association president Gavin Lane said the update followed a prolonged period of uncertainty. “Finally we have some much-needed clarity on the short-term direction of Defra’s farming schemes after months of limbo,” he said.
He said it was vital that SFI works for all businesses. “It is essential that all farmers can access the Sustainable Farming Incentive scheme as soon as possible, regardless of farm type or size, to deliver the greatest benefits to the environment,” he said.
Mr Lane also welcomed funding for collaboration and the extension of Farming in Protected Landscapes. “We welcome news of a collaboration fund and are pleased the Farming in Protected Landscapes programme has been extended, as CLA members have been using it to develop a wide range of projects that deliver for the environment and their businesses,” he said.
Looking ahead, he added: “The long-term vision for farming is key and we look forward to working with Defra in developing the recommendations in the farming profitability review and the upcoming farming roadmap.”
The Nature Friendly Farming Network said the announcements were a step forward but warned that smaller farms face different pressures from larger, growth-focused businesses. Chief executive Martin Lines said: “It’s good to finally have some clarity, even if June still feels a long way off. We particularly welcome the commitment to prioritise smaller farms.”
He said previous agri-environment schemes had often disadvantaged smaller businesses. “Too often in the past, England’s agri-environment schemes have been a race to be first over the line, favouring those with the time and money to navigate complex applications,” he said, adding that many smaller farms “simply don’t have the capacity to play that game”.
Mr Lines said recognising the wider contribution of small farms was important. “It’s encouraging to see government recognising the role of small farms in supporting social cohesion, keeping people on the land, and ensuring public money for public goods genuinely rewards those systems,” he said.
However, he cautioned that policy must reflect day-to-day realities. “For many smaller farms, the real priorities are managing a changing climate, staying viable as costs rise, and competing in markets increasingly undermined by imports produced to lower standards,” he said, adding that if policy is to work, “it must be shaped around their real pressures and priorities”.
Beyond mainstream farm support, the government will also set out proposals to explore new approaches in England’s uplands, where rural communities face challenges including limited services and difficult farming conditions.
Work is planned over the next two years in areas including Dartmoor and Cumbria to test new funding models, develop farming clusters and explore additional income streams such as nature-based enterprises and regenerative tourism.
Farmers in protected landscapes will also see continued support, with the Farming in Protected Landscapes programme extended for three years and £30m allocated for next year.
Since its launch, the scheme has supported more than 11,000 farmers across 44 protected landscapes, including projects focused on nature recovery, climate action and cultural heritage.
The announcements build on the launch of the Farming and Food Partnership Board and will feed into a new 25-year Farming Roadmap, expected later this year, which the government says will set out its long-term approach to food production.
