Eligible farmers across England can today (30 June) apply for the new Sustainable Farming Incentive (SFI), as the government opens the first application window of a scheme designed to be simpler, fairer, and more accessible than ever before.
SFI pays farmers for practical, on-farm actions that support sustainable food production while improving the environment, from improving soil health and keeping waterways clean to creating space for wildlife and reducing reliance on synthetic fertilisers.
Window 1 opens today for two groups small farms with between three and 50 hectares of agricultural land and farms larger than three hectares without an existing Environmental Land Management (ELM) revenue agreement.
A budget of £60 million has been set aside for this window, with any unspent funding carried forward to Window 2, which will open in September 2026 for all farmers and land managers in England.
Environment Secretary Emma Reynolds said
I have heard directly from farmers across the country that the previous SFI funding was not fairly distributed – with a quarter going to just 4% of farms.
I am delivering a simpler, fairer scheme. Having fewer actions means less complexity and more funding for those that support sustainable food production.
Farming is the backbone of our countryside and food security and I am proud that today we are delivering on our promise to open the first window for small farms and those without an agreement.
Rural Payments Agency Chief Executive Oliver Munn said
We’ve worked hard to make the SFI application process as straightforward as possible.
Window 1 gives small farms and those new to ELM schemes an early opportunity to apply. I’d encourage anyone who is eligible to apply.
The scheme is built around a standard three-year agreement and allows farmers to choose from 71 actions to fit their land and business.
It introduces significant reforms to make funding go further and reach more farm businesses. These include a £100,000 annual agreement cap, a single agreement per farm business, and the removal of the SFI management payment, all designed to spread funding more fairly across the sector. A new cap on adding land to rotational actions after Year 1 also provides greater budget certainty.
SFI26 is backed by £240 million for new agreements, building on more than £560 million already committed, and forms part of the government’s record £11.8 billion investment in sustainable farming and food production over this parliament.
The window is demand-led and will remain open for around two months, though may close sooner if the £60 million budget is fully allocated. The government will provide regular updates on the allocation of the Window 1 budget, giving farmers clear visibility of how quickly funding is being taken up.
New functionality available from Window 2 in September means farmers with soon-to-expire ELM agreements such as SFI23 or Countryside Stewardship Mid Tier will be able to apply for land in those expiring agreements before their existing agreement expires. Some small farms may wish to consider waiting to take advantage of this feature given they will only be allowed one SFI26 agreement.
ENDS
Notes to editors
-
Window 1 is open to small farms (three–50 hectares of agricultural land) and farms of more than three hectares without an existing ELM revenue agreement.
-
Window 2 opens in September 2026 for all farmers and land managers. Any unallocated Window 1 budget will be added to the Window 2 budget.
-
At least £50 million is also available this year for new Countryside Stewardship Higher Tier agreements.
-
The £240m is an annual figure – in other words, we have £240m to spend on new SFI26 agreements in application Windows 1 and 2 in this financial year (up to March 2027).
-
Nearly all SFI26 agreements will last for three years, so the total value of the new SFI26 agreements we enter into this year (assuming the full budget is spent) would be around £720m.
-
For SFI26, the new functionality will only be available to farmers with agreements expiring by the end of February 2027 under the following schemes SFI23, Countryside Stewardship Mid Tier (CSMT), Legacy CS Higher Tier (CSHT), and Environmental Stewardship Higher Level Stewardship (HLS)