Defra faces calls to provide long-term funding certainty for farmers delivering environmental improvements
More than 48,000 farmers could be seeking environmental funding in 2027, prompting the NFU to call for a ÂŁ1 billion-plus budget for the next Sustainable Farming Incentive (SFI).
The union wants Defra to reinvest funding associated with expiring agri-environment agreements and unmet demand from SFI26, which it estimates has an annual value of more than ÂŁ960 million.
It argues that the money should be directed into SFI27 to meet expected demand and prevent disruption to environmental work already being carried out on farms.
The warning follows concerns over funding for SFI26, for which the NFU estimated ÂŁ520 million was needed to meet demand, compared with the ÂŁ310 million allocated by Defra.
NFU Vice-president Robyn Munt said: “Farmers have shown in their droves that they want to take part in agri-environment schemes. The experience of SFI26 left no doubt about the strength of that demand.”
The union is pressing for SFI27 to open in early 2027, with agreements starting from 1 April and priority given to farmers whose existing agreements are coming to an end.
It also wants funding allocated on a per-hectare basis to allow more farmers to participate, provided payment rates remain financially viable and adequately reward the environmental work involved.
Other demands include urgently improving access to SFI and Countryside Stewardship Higher Tier for common land, alongside publishing a long-term Environmental Land Management schemes (ELMs) strategy.
The NFU wants the strategy to set out future scheme opening dates and transparent budget information for the remainder of this Parliament, giving farmers greater certainty when making business decisions.
Munt said: “As existing agri-environment schemes come to an end and funding is freed up, Defra must honour its side of the partnership with farmers by reinvesting that money in SFI27 and ensuring its budget matches demand.”
The proposals have been shaped by two NFU member surveys examining experiences of SFI26 and views on future application windows.
The funding demands also come as new figures from the Organisation for Economic Co-operation and Development (OECD) reveal that UK agricultural support amounted to just 0.2% of GDP between 2023 and 2025, approximately half the OECD average.
UK spending on general agricultural services, including knowledge, innovation and inspection, was equivalent to 2.4% of agricultural production, compared with an OECD average of 3.6%.
The OECD has called for greater stability in agricultural support, highlighting uncertainty over future environmental payments and difficulties with the rollout of schemes in England.
It said predictable, multi-year funding would help farmers make informed decisions about land management and investment.
The NFU argues that long-term certainty is essential for maintaining environmental improvements, strengthening domestic food production and supporting rural communities.
Munt said: “A stable and predictable agricultural policy would give farm businesses the confidence to plan for the long term, withstand global shocks, produce the nation’s food and continue delivering for the environment.”
She added: “British farmers are ready to play their part. Defra must now give them the tools and confidence to do so.”