SFI26 Window 2 expected to open on 22 September

Farmers in England will be able to apply for the second window of the Sustainable Farming Incentive 2026 from 22 September, with an additional £50m available to support businesses hit by drought.

The government expects SFI26 Window Two to launch on Tuesday 22 September, when the scheme will be open to all eligible farmers and land managers in England – a move welcomed by farming organisations.

Tenant Farmers Association chief executive George Dunn said the announcement gave farmers “clarity” and welcomed the chance for those who started but did not submit an application in the first window to complete it when the main scheme window opens.

See also: Advice on preparing for September’s SFI26 application window

He added that SFI funding was a “vital part of the toolkit” for building resilience in a farming industry facing high input costs, drought and animal disease.  

The £50m drought funding takes the total SFI26 budget for the current financial year to £290m.

Window 1 closed

The announcement follows about 6,500 applications submitted during the first window, which closed on 28 August after two months and was restricted to smaller farms and businesses without an existing Environmental Land Management (ELM) agreement.

Some 69% of applicants farmed 50ha or less, while 87% had no existing ELM revenue agreement. More than half met both criteria.

About 3,615 SFI26 agreement offers have so far been issued, with applicants receiving an offer on average within 24 days. The average annual value of agreements in the first window was just under £10,000.

Defra has not disclosed how much of the £60m Window 1 budget remains unspent.

While about 75% (£45m) had been allocated by mid-July, applications are still being processed and the final value of agreements has yet to be confirmed. Defra has said that any unallocated Window 1 funding will roll over into Window 2.

Defra farming minister Stephen Morgan said the first window had shown “hugely encouraging” demand and said farmers who had been unable to apply would now have their opportunity.

Farmers who started but did not submit a first-window application will generally be able to complete it when Window 2 opens, although some will have to submit a new application because of mapping changes or expiring ELM agreements.

Defra said the most popular actions in the first window included low-input grassland, hedgerow management, haymaking, herbal leys and pond management.

‘Prepare now’

The government is encouraging farmers planning to apply in September to check their digital maps and land-use information in advance, warning that incorrect land details could prevent an application being submitted.

With the second window open to all eligible farmers, demand is expected to be significantly higher than in the first round.

Meanwhile, Defra has confirmed it plans to offer an SFI27 scheme in 2027, with ministers committing to stabilise the main design of the SFI for the duration of the current Parliament.