Half of first SFI26 funding pot allocated in days

Around half of the £60m budget for the first application window of the redesigned Sustainable Farming Incentive (SFI26) has already been allocated, according to Defra.

An update published on Friday 3 July said about 50% of the Window 1 funding had been committed based on applications received so far, with strong demand from farmers since the scheme opened on 30 June.

See also: Quarter of first SFI funding pot snapped up within hours

Defra said the level of uptake was within the range it had expected, with initial demand peaking on the first day before settling into a steadier pace.

A Defra spokesman said the early demand demonstrated farmers were “ready to seize the opportunities” offered by the revamped scheme.

“The early demand for the redesigned Sustainable Farming Incentive shows farmers are ready to seize the opportunities it offers,” the spokesman added.

“We’re backing more farmers to invest in their businesses while delivering for food production, nature and the long-term resilience of our countryside.

“By prioritising smaller farms and those new to Environmental Land Management schemes, we’re making sure funding reaches those who have too often missed out.”

More regular updates

Defra said it would continue publishing regular updates on demand to help farmers monitor progress before the second application window opens in September.

Only small farms (3-50ha) and those without an existing ELM agreement are eligible to apply for SFI26 funding in Window 1, with agreements capped at £100,000 maximum per business.

Eligible farmers who have yet to submit a Window 1 application are being urged to do so as soon as possible, ensuring their digital maps are up to date and that they have at least 3ha of eligible agricultural land registered before applying.

The department said it would issue a further update once around 75% of the Window 1 budget has been allocated.

However, the speed at which funding is being committed has renewed concerns over whether enough money will be available to meet demand.

‘No surprise’ – NFU 

NFU vice-president Robyn Munt said it was unsurprising that the budget was being allocated so quickly, reflecting strong appetite among farmers to take part in environmental schemes while continuing to produce food.

“It comes as no surprise that the budget for this window is going so quickly,” she said. “There’s a real appetite in the sector to do more for the environment while producing our country’s food and the scheme is clearly popular.

“If the government is serious about delivering its environmental targets, it must match farmers’ ambition with a sufficient budget.

“This is about enabling the continued delivery of public goods, such as planting hedgerows and developing wildflower margins, but there’s a real risk that many farmers simply won’t be able to access these schemes.”

Window 2 of SFI26 is expected to open in September, allowing eligible applicants who either miss or do not match the criteria of the first application window another opportunity to apply.