Speaking at today's Oxford Farming Conference, Environment Secretary Emma Reynolds announced reforms to the Sustainable Farming Incentive (SFI) for 2026.
There will be two application windows in 2026, with the first being in June for smaller farms and those without an existing SFI agreement and the second being in September for all farmers.
The scheme will also be adapted to be more focused, with changes expected to include:
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limiting how much land can be put into SFI actions that take land out of production - something that placed signficant pressure on Defra budgets in 2024 -25 where large scale environmental schemes were taken up on some farms.
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reviewing payment rates for actions that take land out of production where uptake has been particularly high.
Greater certainty, clear budgets and clear timelines have been pledged, along with a new Farming and Food Partnership Board to drive growth across the sector.
Katie Hilton, Director in Cheffins Rural Professionals department comments: “We welcome the certainty that SFI will be making a comeback in 2026 in the way that has been rumoured. This is a good start to the government’s reset for environmental schemes, but we also need a longer-term vision which demonstrates that SFI is going to be reliably available to all farmers year-on-year.”
“Under this first application window in June 2026 we need priority to be given to farms that have so far been without an SFI agreement, regardless of farm type or size.”
Defra has confirmed that the definition of farms eligible to apply will be published ahead of the first application window opening in June.
Our expert team of rural surveyors and farm consultants is ready to help navigate the future funding options, with further information available from the Cheffins Rural Professionals department on 01223 213777 (Cambridge) or 01353 662405 (Ely).
Please contact Katie Hilton for more information.