SFI to reopen with focus on small farms and newcomers

Farmers in England will be able to apply for the Sustainable Farming Incentive (SFI) once again from Tuesday (30 June), as the government relaunches the scheme with a renewed focus on smaller farms and new applicants.

The revamped SFI26 scheme will open its first application window with up to £60m available from a total £240m budget confirmed by Defra.

The initial round is aimed at farms between 3ha and 50ha and those not currently in an Environmental Land Management (ELM) revenue agreement, including existing SFI or Countryside Stewardship schemes.

See also: £240m for new SFI scheme ‘insufficient’ says NFU

A second application window is expected in September, when the scheme will be opened to all eligible farmers and land managers.

NFU vice-president Robyn Munt said: “Farmers and growers who are eligible for the first window of SFI26 will be relieved to be able to access the funding they need to support sustainable practices on farm.

“For thousands more farm businesses, it will also give the confidence to start preparing an application to submit once the second window opens later this year.”

Build resilience

Martin Lines, chief executive of the Nature Friendly Farming Network UK, also welcomed the opening of the SFI scheme.

“I think it’s important that small farmers and those without existing ELM agreements get this opportunity,” he said.

“We will monitor the scheme Defra are using to see how smooth the application process is and to support farmers getting ready for the second application window in September.

“It’s a priority that farmers get access to the SFI to deliver public goods and unlock funding to build resilience into their farming businesses.”

The updated offer includes a simplified menu of 71 actions, designed to support environmental improvements while maintaining food production and boosting farm productivity.

Agreements will generally run for three years, with payments issued quarterly.

£100,000 cap

Each farm business will be limited to one agreement, capped at £100,000 a year.

Any funding not allocated in the first round will roll into the second window.

The scheme’s reopening follows an abrupt pause in applications in March 2025, which created uncertainty across the sector.

Defra says the revised structure aims to provide clearer rules and greater budget control with regular updates.

Farmers are being urged to prepare early by checking eligibility, updating Rural Payments Service details and reviewing available actions.

With strong demand expected, the first window could close early if funding is fully allocated.