Defra sets out two-window SFI return in 2026

English farmers have been given long-awaited clarity on the future of the Sustainable Farming Incentive (SFI), after Defra confirmed the scheme will reopen in 2026 through two application windows, with smaller farms and new entrants taking priority.

Defra secretary Emma Reynolds will unveil further details in a speech to the Oxford Farming Conference today (January 8), pledging what she has called a “new era of partnership” between government and farmers, with SFI reform at its heart.

She is expected to tell delegates: “You will have the certainty you need to plan – clear budgets, clear timelines, clear future roadmap, and growth built on strong foundations.”

See also: Farmers advised ‘be ready to act fast’ on SFI 2026 support

The SFI scheme, long criticised for complexity and stop-start delivery, will open in June for smaller farms and those without an existing agreement, followed by a wider application window from September.

The second round will not be size-limited, but Defra is expected to set out clearly how much budget will be available.

Defra is also due to engage with stakeholders on how a “small farm” should be defined, after ministers widened the scope to include farmers new to the scheme, not only smaller holdings.

Industry reaction

Country Land and Business Association (CLA) president Gavin Lane welcomed the announcement, but warned confidence would only return if access was swift and inclusive.

“Finally, we have some much-needed clarity on the short-term direction of Defra’s farming schemes after months of limbo,” he said.

“It is essential that all farmers can access the SFI as soon as possible, regardless of farm type or size, to deliver the greatest benefits to the environment.”

The Nature Friendly Farming Network (NFFN) praised the renewed focus on smaller farms, but warned policy must reflect the realities they face.

NFFN chief executive Martin Lines cautioned that for many small farms “the real priorities are managing a changing climate, staying viable as costs rise, and competing in markets increasingly undermined by imports produced to lower standards”.

The Tenant Farmers Association (TFA) said it would work closely with Defra on defining “small farmers”, stressing this must reflect differences between sectors and prioritise active, working farmers.

TFA chief executive George Dunn warned against an overly narrow SFI, but said limits on land use and payments could help prevent the “senseless removal” of land from production.

Meanwhile, green groups including the Soil Association and RSPB said the SFI reopening must include support for organic farming, urging a 10% land target and Organic Action Plan.

New funding

Alongside SFI reform, the government is set to announce £30m over three years for a new Farmer Collaboration Fund – one of the key recommendations in Baroness Batters’ Farming Profitability Review – alongside a further £30m next year through a three-year extension of the Farming in Protected Landscapes (FiPL) programme.