What's New in the Sustainable Farming Incentive for 2026?

Streamlined and Simplified Actions

The new SFI26 offer includes 71 actions, down from 102 previously, meaning the scheme has been streamlined with a focus on actions that deliver better value for money and clearer environmental outcomes.

This reduction reflects DEFRA’s aim to remove low‑uptake options and those that may have been less effective in balancing food production with environmental benefits.

Two Application Windows in 2026

• Window 1 – June 2026: Open to smaller farms (up to 50 ha) and farms that do not currently hold an existing ELM revenue agreement.
• Window 2 – September 2026: Open to all farms.

Eligibility requires at least 3 hectares of agricultural land.

Caps on Payments and Agreements

• Each farm business can only hold one SFI26 agreement.
• No SFI26 agreement can be worth more than £100,000 per year.

These caps are designed to spread funding more evenly across the sector and support smaller and medium‑sized farms.

Changes to Action Structure

• Three‑year durations for all actions - rather than the previous five years - giving more flexibility, especially for tenant farmers.
• Removal of the SFI management payment - funds previously used to support scheme entry have been redirected to action payments.
• Rotational actions must stay at the same area or value as in the first year of the agreement.

Payment rates on some actions have been updated too - with increases for several moorland and shepherding actions, and reductions on others like herbal leys and winter bird food, based on uptake data and environmental priorities.

The revised SFI26 scheme still supports sustainable land use and environmental outcomes, but the focus is now narrower, clearer and more directly aligned with on‑farm delivery. Farmers and land managers can expect:

• A more navigable set of options that are easier to understand and apply for.
• Greater certainty around budgets and application timing so you can plan cropping, grazing or restoration work.
• More equitable access - especially for smaller farms - thanks to the payment and agreement caps.

That said, it’s more important than ever to review which actions fit your business and land goals, as well as to prepare evidence and planning ahead of opening windows, especially if you’re thinking of applying in June.

• Assess your land and business scale to confirm which application window you’ll be eligible for.
• Start planning which SFI actions suit your operation, considering both environmental outcomes and financial benefits.
• Gather any necessary evidence or baseline data to support your action choices.
• Bookmark GOV.UK guidance and DEFRA blog updates, as full scheme details and payment rates will be published before the first window opens.