NFU demands more clarity on SFI 2026 reopening

The NFU has warned that farmers urgently need more detail on Defra’s plans to reopen the Sustainable Farming Scheme (SFI), despite confirmation that two application windows will open in 2026.

Speaking at a press briefing at the Oxford Farming Conference (OFC) today (8 December), NFU deputy president David Exwood said the announcement was welcome, but left major unanswered questions about funding, eligibility and relevance for farm businesses.

“Until we know the scope of the budget and the options that are available to our farmers, it’s very difficult for our members to know the relevance of the SFI scheme to their farming business,” he said.

See also: Defra sets outs two-window SFI return in 2026

Mr Exwood said that while Defra’s commitment to reform was a step forward, the lack of detail was continuing to undermine farmer confidence.

“We’ve long called for clarity. This is a first step. But actually, we need much more clarity and we look forward to working with Defra to flesh out what that detail means as soon as possible,” he added.

Defra secretary Emma Reynolds used her speech at OFC 2026 to outline significant changes to the SFI scheme, after what she acknowledged had been a damaging period for trust following the scheme’s unexpected closure in March last year.

Two application windows

She confirmed two application windows in 2026: an initial window from June for small farms and those without existing Environmental Land Management (ELM) agreements, followed by a second window from September open to all farms.

Ms Reynolds later told reporters that Defra was considering how to define a small farm, confirming it would be based on acreage rather than revenue. “The proxy has generally been 50ha, but we will come back and engage with the sector on that,” she said.

A central plank of the reforms is a move to spread funding more widely across the industry.

Ms Reynolds confirmed Defra was considering an agreement value cap, after acknowledging that “a quarter of the money goes to just 4% of farms”. She said this was necessary to ensure environmental benefits were delivered more evenly and alongside food production.

Mr Exwood said the NFU recognised the pressures on the budget, but warned the scheme must remain accessible to all farm types.

“We recognise that the farming budget is finite and that SFI has to be spread more evenly across the industry,” he said.

“But for farming and growing businesses to deliver the public goods the scheme originally set out to achieve, it is vital that it is accessible and relevant to all food producing businesses, no matter the size.”

He added that if a cap is introduced, the NFU supports “a cap per hectare for SFI agreements on farm”.

Schemes expiring

The NFU also highlighted the urgency created by expiring agreements, with 27,800 farmers currently in agri-environment schemes due to end by the close of the 2026/27 financial year.

With that deadline approaching, Mr Exwood said clarity on SFI budgets for both windows was essential to ensure continuity of environmental delivery and give farmers the confidence to plan and invest.