Defra SFI overhaul a blow for species-rich grasslands

The UK government’s overhaul of the Sustainable Farming Incentive (SFI) will leave most farmers without funding to manage or restore species-rich grasslands, raising concerns among environmental groups and the farming sector.

At the recent NFU Conference, Defra secretary Emma Reynolds confirmed the SFI will reopen in June 2026, after its sudden closure in March 2025.

The revised scheme will include 71 actions, down from 102, with a £100,000 annual cap per farm.

See also: Analysis: What SFI26 offer means for farm businesses

However, the GRH6 action for managing species-rich grassland, previously paying £646/ha to manage, restore or create priority habitats has been removed from SFI26.

Farmers must now apply through the Countryside Stewardship Higher Tier (CSHT) scheme, which is harder to access through Natural England and generally only available via invitation.

Unclear rationale

The removal of GRH6 leaves a funding gap for species-rich grassland. While a comparable CSHT action exists, it is only available to farmers by invitation, leaving many without support for 17 months.

Fifth-generation farmer James Robinson, who runs Strickley Farm near Kendal, Cumbria, manages a 120ha organic dairy enterprise with his family.

Mr Robinson, who is also chairman of the Nature Friendly Farming Network (NFFN) England steering group, said he was disappointed that Defra has decided to remove the GRH6 option from SFI26.

“It was really valuable in terms of ground nesting birds, the diversity of the plants and soil health. These are key to the survival of many species,” he said.

“In upland areas, they are some of the best paying options on the farm. I personally think it was just too expensive for [Defra] to get this endorsed action through.

“However, farmers who manage these meadows are very proud of them and I think they should be paid for the many benefits they deliver.”

Jo Riggall, grassland advocacy officer at Plantlife, said: “Many farmers were desperately clinging on to be able to manage their meadows and species-rich pastures for nature, while producing food.

“They may now feel they have no choice but to intensify or give up, which directly undermines the UK government’s own climate and nature targets.”

The Wildlife Trusts land use policy manager Gemma Lane added: “This action had supported restoration of our beautiful meadows, botanically diverse habitats home to our native flowers, critical pollinators and rare species which covers less than 1% of the UK. 

“It is a jarring, worrying development from the positive reopening of the SFI.”  

Removed actions

Other actions removed from the 2026 SFI scheme include herbal leys, winter bird food, legume fallow, and planning-support actions such as soil testing, nutrient management, and integrated pest management plans.

Defra says the updates aim to broaden support for environmental practices, but critics argue high-value habitat measures have been overlooked, leaving farmers with difficult decisions about land management.

Farmers Weekly has approached Defra for comment.