Farmers in England will soon be able to apply for the new Sustainable Farming Incentive (SFI26), a simpler and fairer scheme designed to support family farms and meet the challenges of modern farming.
Developed with farmers and industry, SFI26 is backed by £240 million for new agreements, building on more than £560 million already committed. The scheme cuts red tape and pays farmers for taking practical steps that benefit their land – such as improving soil health, keeping waterways clean, and creating space for wildlife.
Applications are expected to open from 30 June 2026 for two groups small farms and farms without an existing Environmental Land Management (ELM) revenue agreement. A second application window will open in September 2026, giving all farmers and land managers the opportunity to apply.
Among the new offer are several actions that encourage the reduced use of synthetic fertilisers in favour of more sustainable and environmentally friendly options, cutting input costs and boosting resilience to global market shocks.
At least £50 million will also be available for new Countryside Stewardship Higher Tier (CSHT) agreements this year, supporting targeted environmental improvements where they will have the greatest impact.
Together, these schemes will help boost food production, strengthen farm resilience, support nature recovery, and underpin the UK’s long-term food security.
Environment Secretary Emma Reynolds said
Farmers are fundamental to food security. They produce the food we rely on, support rural communities, and play a vital role in our economy.
Under the previous Sustainable Farming Incentive, a quarter of funding went to just four percent of farms, so we have redesigned it to be simpler and fairer, helping more farms grow, boost productivity and protect the natural environment they depend on.
Building on the Environment Secretary’s commitment at the Oxford and NFU conferences to reform the Sustainable Farming Incentive in partnership with farmers, this new offer delivers greater certainty, fairer access to funding and a simpler, more accessible scheme for farmers.
Notes to editors
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The Sustainable Farming Incentive (SFI) is a government scheme that pays farmers in England to manage their land in ways that improve nature, soil health, and the environment while producing food.
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Of this total budget for SFI26, £60 million has been allocated to Window 1 for small farms and farms without an existing Environmental Land Management (ELM) revenue agreement. If we don’t allocate the full £60m in Window 1, that unspent budget would be available for Window 2.
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SFI26 will include a series of changes to make the scheme fairer, simpler, and more accessible
- A new £100,000 annual agreement cap will help ensure funding reaches more farm businesses.
- Each farm business will be able to have one SFI26 agreement, helping spread available funding more fairly across the sector.
- The SFI management payment will end for new agreements, allowing more funding to be directed towards on-farm actions.
- A new cap on adding land to rotational actions after Year 1 will provide greater budget certainty and help support more agreements.
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Nearly all SFI26 actions will move to a standard three-year agreement length, simplifying the scheme and improving access for tenant farmers.
- SFI26 scheme information (scheme rules and guidance, terms and conditions, and the 71 actions farmers can choose from) can be found HERE.
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We expect CSHT to continue supporting important habitats such as species-rich grassland through new targeted agreements, with further details to be announced shortly.
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The government is also progressing the next group of Landscape Recovery projects expected to move into implementation this year, supporting large-scale action to restore rivers, habitats, and landscapes across England.
- On 28 May, we published the Capital Grants offer guidance for this year which will open for applications in July. This new round will make £225 million, 50% more than in 2025, available to farmers to improve farm infrastructure and carry out works that help them make environmental improvements across England.
Environmental Land Management agreements
- If farmers have an ELM agreement that’s coming to an end soon, the government wants to make sure they can access the full SFI26 offer.
- The government is building new functionality into the SFI26 application service that will let these farmers apply for land currently in these expiring agreements before they end. The government expects this to be available from the start of Window 2 in September 2026.
- Some small farms eligible for Window 1 also have land in soon to expire agreements. They may want to consider waiting and applying during Window 2 instead, so they benefit from this new feature and make the most of their SFI26 agreement.
- The government aims to confirm whether this approach will be possible before Window 1 applications open, so affected small farms can decide which application window is right for them.
