SFI26 Window 2 opens amid £233m funding scramble

SFI26 Window 2 has opened to applications from farmers and land managers across England, with a £233m budget available but no fixed closing date as concerns grow over how quickly the money could be allocated.

The second application window opened at 10am on Tuesday 22 September and will remain open only until the available funding has been committed. 

Defra says it expects strong demand and will publish updates when 25%, 50% and 75% of the budget has been allocated.

See also: SFI26 Window 2: Two-thirds of eligible farms could miss out

By 12pm today, less than two hours after the scheme opened, Defra announced in a blog update that 25% of the Window 2 budget had already been allocated based on applications received.

Just over an hour later, shortly after 1pm, Defra confirmed in a second blog update that 50% of the budget had been alloacted.

The £233m pot comprises the £180m originally earmarked for Window 2, an additional £50m announced by the prime minister as part of drought support measures, and £3m left unallocated from Window 1.

Many farmers expressed frustration ahead of the launch after Defra declined to give a precise opening time, prompting some applicants to repeatedly check the online system overnight amid fears funding could disappear quickly.

Farmer frustration

George Brown, chairman of the British Farming Union, said: “Defra has known for months that the SFI26 Window 2 will be oversubscribed, that the system won’t cope, that it is underfunded and many will miss out.

“I’m sure I’m not alone in having checked every 30 minutes since the early hours in fear the land agents will clog the system in minutes with thousands of applications.”

Mr Brown, an arable and sheep farmer from Newbury, Berkshire, said Defra’s failure to provide a firm opening time left farmers unable to plan their day.

“The government created a funding race and then left us all wondering when the starting gun would actually fire,” he said.

Another farmer in Devon accused Defra of “treating farmers with contempt” over the handling of the scheme.

“I’ve written to my MP because Defra must stop treating farmers this way. There should have been enough funding in the scheme from the start, not a lottery for those who need it.

“Many farmers are struggling with cashflow. My neighbour has just spent £5,000 vaccinating his sheep against bluetongue. It’s a really difficult time for the industry.”

Funding updates promised

Defra has promised greater transparency over budget allocation than under previous schemes, with regular updates to be published as funding is committed.

In a blog, the department acknowledged that the length of time Window 2 remains open will depend entirely on demand, while warning that applications which are started but not submitted before the window closes will not be accepted once the budget has been exhausted.

Window 2 is open to farmers and land managers registered with the Rural Payments Agency who have at least 3ha of eligible agricultural land.

Unlike Window 1, which was primarily targeted at smaller farm businesses and those without an existing Environmental Land Management (ELM) revenue agreement, the latest round is open to a much wider range of businesses, including many with existing ELM agreements.

Help for expiring agreements

Defra has also introduced a new “apply early” function for farmers whose SFI23, Countryside Stewardship Mid Tier, Countryside Stewardship Higher Tier or Higher Level Stewardship agreements expire on or before 28 February 2027.

The change allows eligible agreement holders – about 21,000 farms – to apply for SFI26 before their existing scheme ends, giving businesses greater certainty over future funding and land management plans.

Farmers who started but did not submit an application during Window 1 will generally be able to continue and submit it in Window 2.

However, some will need to begin a new application if mapping updates have been made or if they are using the new early-application functionality for expiring agreements.

Looking ahead

Defra also used the launch to signal that a further SFI scheme is planned for 2027, with ministers pledging to maintain a stable overall design for the remainder of the Parliament.

The announcement is likely to intensify competition for Window 2 funding, however, after about 7,000 applications were submitted during the far more restricted first round.