Defra opens first SFI26 window for eligible farmers

Small farms and businesses without existing Environmental Land Management revenue agreements can now apply for SFI26, as Defra opens the first £60 million application window.

Defra said the new Sustainable Farming Incentive is designed to be simpler, fairer and more accessible than previous versions.

Window 1 opened on Tuesday 30 June and is available to farms with between three and 50 hectares of agricultural land.

It is also open to farms larger than three hectares that do not already have an Environmental Land Management revenue agreement.

The window is expected to remain open for around two months, but could close sooner if the £60m budget is fully allocated.

Any funding not used in Window 1 will be carried forward to Window 2, which is due to open in September 2026 for all farmers and land managers in England.

SFI pays farmers for practical on-farm actions that support sustainable food production and environmental improvement.

These include actions to improve soil health, keep waterways clean, create space for wildlife and reduce reliance on synthetic fertilisers.

Environment Secretary Emma Reynolds said she had heard concerns from farmers that previous SFI funding had not been fairly distributed.

She said: “I have heard directly from farmers across the country that the previous SFI funding was not fairly distributed – with a quarter going to just 4% of farms.”

Ms Reynolds said the revised scheme was intended to reduce complexity and direct more money towards actions supporting sustainable food production.

She added: “Farming is the backbone of our countryside and food security and I am proud that today we are delivering on our promise to open the first window for small farms and those without an agreement.”

Rural Payments Agency chief executive Oliver Munn said the application process had been made as straightforward as possible.

He said: “Window 1 gives small farms and those new to ELM schemes an early opportunity to apply. I’d encourage anyone who is eligible to apply.”

The scheme is based on a standard three-year agreement and allows farmers to choose from 71 actions to suit their land and business.

The new version includes a £100,000 annual agreement cap, one agreement per farm business and the removal of the SFI management payment.

Defra said the changes are designed to make funding go further and spread support more fairly across the sector.

A new limit on adding land to rotational actions after Year 1 has also been introduced to give greater budget certainty.

However, Defra said some small farms with soon-to-expire ELM agreements may wish to wait until Window 2 before applying.

From September, new functionality will allow farmers with expiring agreements, including SFI23 and Countryside Stewardship Mid Tier, to apply for land in those agreements before they end.

Defra said this may be relevant because farm businesses will only be allowed one SFI26 agreement.

SFI26 is backed by £240m for new agreements in the current financial year, building on more than £560m already committed.

At least £50m is also available this year for new Countryside Stewardship Higher Tier agreements.

Defra said the wider farming budget forms part of the government’s £11.8bn investment in sustainable farming and food production over this parliament.

Most SFI26 agreements will run for three years, meaning the full £240m annual allocation could support agreements worth around £720m over their lifetime if fully spent.

Farmers are being urged to check eligibility carefully before applying, particularly if they have an ELM agreement due to expire before Window 2 opens.