More than 100 MPs demand action after SFI26 funding runs out in hours

More than 100 Conservative MPs have demanded urgent action over the handling of SFI26 after its £253 million Window 2 budget was exhausted in less than six hours.

The MPs have written to Defra Secretary Dame Angela Eagle criticising the design and management of the Sustainable Farming Incentive and calling for changes before the next scheme opens.

SFI26 Window 2 opened on 22 September with an initial £233 million budget and closed at 3.48pm after demand exhausted the available funding.

Around 12,200 applications were submitted before the window closed, according to Defra.

For many farmers, it was their first opportunity to access SFI since the previous scheme closed in March 2025.

The Conservative MPs said the latest process had caused anger among farmers and advisers.

“Following the shambolic management of SFI26, we are writing to express our deep concern and anger at the way the scheme has been designed, managed and communicated over the past 18 months,” the letter said.

The MPs said farmers had described the process to them as “demeaning”, “farcical” and “disastrous”.

They reported receiving accounts of farmers missing the submission deadline by seconds, encountering system problems and cutting back applications because they feared funding would run out.

The letter also said some advisers had been forced to decide which clients’ applications to prioritise as the budget was rapidly allocated.

More than 21,000 existing agreement holders had been looking for an opportunity to secure continued funding for environmental work already being carried out on their farms, according to the Conservative letter.

It claims 12,500 existing agreement holders failed to secure a new agreement through Window 2.

The group is calling for an urgent review of applications that were started but could not be submitted because of technical or administrative problems.

MPs also want ministers to set out the timetable and budget for SFI27 and ensure the first-come, first-served model is not repeated in future schemes.

They argue that environmental funding should not depend on how quickly farmers can complete and submit applications.

Defra had made clear before Window 2 opened that the scheme would close when the available budget had been allocated.

It also warned that applications started but not submitted before closure would not normally be accepted.

The department has since acknowledged that some farmers who wanted to join SFI26 were unable to secure funding.

It says another SFI offer is planned for 2027 and that officials will work with farming organisations and the wider sector on changes ahead of the next scheme.

The Liberal Democrats have separately criticised the way Window 2 operated and called for additional support for farmers who missed out.

Their environment spokesman Tim Farron has argued that the first-come, first-served approach risked disadvantaging smaller farms with fewer administrative resources.

The Conservatives are also seeking greater clarity over support for farmers whose existing Countryside Stewardship and other environmental agreements are coming to an end.

The dispute comes after intense demand for Window 2, which Defra had expected could close early if its budget was fully allocated.

Attention will now turn to the design of SFI27, with pressure building on ministers to explain how future funding will be allocated and whether farmers who missed out this year will receive additional opportunities to apply.