Farmers rushed to secure SFI26 funding as demand exhausted the £233m pot on opening day
SFI26 Window 2 has closed after its entire £233 million budget was allocated within hours of applications opening on 22 September.
The second Sustainable Farming Incentive application window opened on Tuesday morning, but rapid demand exhausted the available funding before the end of the day.
By 3pm, Defra had confirmed that 75% of the Window 2 budget had already been allocated, with the remaining funding subsequently committed.
Farmers who started but did not submit an application before the window closed will not be able to complete it under Window 2.
The Rural Payments Agency (RPA) will now continue processing applications submitted before the closure.
RPA chief executive Oliver Munn had said as the window opened that demand for the scheme was already clear from the first application round.
“The response to the first window shows strong demand, and our teams have been working at pace to turn applications into agreements and payments.
“As the second window opens, our focus is on giving applicants clear guidance, predictable processes and the confidence to apply when they are ready.”
The closure has prompted a strong response from farming organisations, with the NFU saying the speed of uptake demonstrated the level of demand for environmental funding and farm resilience measures.
NFU vice-president Robyn Munt said: “The rapid uptake of the scheme comes as no surprise. Its closure in less than six hours shows the scale of demand there is from farmers to deliver for the environment and to invest in farm resilience.”
She said pressure on farm cashflows had added to demand for the scheme and criticised the level of funding available.
“We have warned Defra for months that the available budget would not meet demand of those farmers wanting to deliver for the environment and sustainable farming,” she said.
“The additional funding announced by the Prime Minister in August was welcome, but with thousands of agreements ending this year, it was clear that it wasn’t enough to plug the gap in the budget needed and it fails many who have been committed to such schemes for many years.”
The NFU is now calling for urgent clarity over what support will be available to businesses that failed to secure an agreement.
Munt added: “For food producing businesses already questioning whether they can survive the year ahead, this clarity is critical.”
The Country Land and Business Association (CLA) also raised concerns as applications surged during the day.
CLA deputy president Joe Evans said: “Today has been a scramble for thousands of farmers desperately trying not to be left behind.”
The organisation called for clear guidance for farmers who were unable to secure an SFI26 agreement despite attempting to apply.
The National Sheep Association (NSA) had also urged farmers to move quickly as the available funding was being allocated.
NSA chief executive Phil Stocker said: “If your digital maps are correct and you know which actions suit your land, the advice from NSA is to apply this week.”
The £233 million Window 2 budget comprised £180 million initially allocated to the round, an additional £50 million announced as part of government support following drought and rising costs, and £3 million left unallocated from Window 1.
Attention will now turn to the processing of submitted applications and what further support will be available to farmers who missed out.
Defra has previously said it plans to offer SFI again in 2027, although further details and timing have yet to be announced.