SFI 2026 launch date confirmed as new details emerge

Defra has confirmed that applications for the 2026 Sustainable Farming Incentive (SFI) are expected to open from 30 June, with a limited test phase starting around 18 June.

In a blog published on 2 June, the department said a small number of eligible farmers will be invited to apply early in order to “test and refine the application service in a controlled way” ahead of full rollout.

Near-final versions of key scheme documents – including rules, guidance and action requirements – have also been published, giving farmers their clearest indication yet of how the scheme will operate.

See also: Why SFI26 doesn’t stack up for Herefordshire farmer

Defra said the offer “supports sustainable food production alongside practical actions that improve soil health, protect water quality, support nature recovery and strengthen farm resilience”, adding that it is an “iterated version” of the 2024 scheme with a simplified structure.

However, ministers have yet to confirm the overall SFI26 budget or how funding will be split between application windows.

Lynette Steel, farm policy adviser at the Tenant Farmers Association, said: “We welcome the publication of the guidance, but Defra must now maintain momentum by addressing remaining concerns.

“These include fair access for commons, greater clarity on future budgets and timelines, and a route for farmers in Higher Level Stewardship agreements to enter SFI26.”

Two application windows

SFI26 will be delivered through two application windows.

The first is expected to open from 30 June and will be limited to:

• Small farms (up to 50ha of agricultural land registered on 1 January 2026)
• Farms without an existing Environmental Land Management revenue agreement.

Defra says the window will remain open for around two months, but may close sooner if the budget is fully allocated.

A second window will open in September for all eligible farmers, with no fixed closing date.

Each business will be limited to a single agreement worth up to £100,000/year.

Reducing input costs

Defra has highlighted a range of SFI actions designed to reduce reliance on artificial fertilisers and help farmers manage rising input costs due to tensions in the Middle East.

These include variable-rate nutrient application, alongside measures such as cover crops and legumes to improve soil health and nutrient efficiency.

Mid Tier uncertainty

Uncertainty remains around how SFI26 will interact with existing Countryside Stewardship agreements.

Tom Cooper, chartered surveyor at Cooper Rural, said farmers who signed one-year CS Mid Tier extensions to 31 December 2026 were unsure how this would affect access to SFI.

“SFI applications for these people open in September. Have they inadvertently signed up to a scheme which means they will be forced to take a year out of the SFI? No one seems to know,” he said.

“We are getting inundated with questions – am I going to miss out?”

He added that the lack of clarity on the overall budget was also a concern.

“Many clients are worried Defra could close the window – particularly in September – if funding is exhausted.”

Defra has acknowledged transition concerns and said it is exploring ways to avoid gaps in support as farmers move from Countryside Stewardship into SFI26.

Final scheme documents are expected to be published in mid-June, ahead of applications opening.