Quarter of first SFI funding pot snapped up within hours

A quarter of the first funding pot for the new Sustainable Farming Incentive (SFI) has already been allocated within hours of the scheme opening for applications.

In a blog released on 1 July, Defra confirmed about 25% of the £60m Window 1 budget had been committed following a surge of applications after the scheme launched on 30 June.

Geoff Sansome, a farmer based in Worcestershire and former head of agriculture at Natural England, said he was “not surprised” by the strong demand and urged eligible farmers yet to apply: “Don’t delay.”

See also: SFI to reopen with focus on small farms and newcomers

He added: “I guess it’s positive news that farmers and land agents have been prepared. It’s a shame the SFI scheme has reopened at a time of year when farmers are flat out and harvest has started.  

“The fact that the budget is being allocated rapidly is not surprising. We saw the same trend with last year’s Capital Grants scheme.

“The Capital Grants scheme window is set to reopen at the end of July. We will have the same mad scramble.”

Defra said the strong early demand for the SFI was expected and that application volumes have since begun to level off, with submissions now arriving at a steadier pace.

Window 1 is aimed at smaller farm businesses (less than 50ha) and farmers who do not currently have an Environmental Land Management (ELM) scheme agreement, as the government looks to widen access to environmental funding.

Defra said the rapid uptake reflects “the value farmers see in the scheme” and the opportunities it offers to support sustainable food production while delivering benefits for nature and the environment.

‘Check eligibility’

Eligible farmers in England who have not yet applied for an SFI26 agreement are being urged to ensure their applications are complete before submitting them, including checking that digital maps are up to date and that they have at least 3ha of eligible agricultural land.

The SFI 2026 scheme has a total budget of £240m, on top of about £560m already committed to existing agreements, bringing total SFI funding commitments to approximately £800m.

Farmers who miss the first application window will be able to apply when Window 2 is expected to open in September. If the full £60m is allocated in Window 1, about £180m would remain available for Window 2.

Defra has pledged to publish further updates when approximately 50% and 75% of the Window 1 budget has been allocated.