Agriculture & Farming UK-wide

Environmental Land Management (ELM) schemes are England's replacement for EU agricultural subsidies. With three schemes offering different approaches, agreement lengths, and payment structures, choosing the right one depends on your farm type, environmental features, and business goals.

This guide provides a detailed comparison to help you make an informed decision about which scheme - or combination of schemes - suits your situation.

The Sustainable Farming Incentive (SFI) closed to new applications on 11 March 2025. It will reopen in two windows: June 2026 (prioritising small farms and those without existing ELM agreements) and September 2026 (open to all farmers).

Current scheme status at a glance

Before comparing schemes in detail, understand what is currently available:

Sustainable Farming Incentive (SFI)
CLOSED until June/September 2026. Existing agreements continue normally.
Countryside Stewardship Higher Tier (CSHT)
OPEN - rolling applications by invitation from September 2025
Countryside Stewardship Capital Grants
Periodic rounds - 2025 round closed August 2025, new round expected 2026
Landscape Recovery
OPEN for competitive rounds - Round 1 and Round 2 projects in development/delivery
2025/26 ELM budget
£1.8 billion total across all schemes

Three-scheme comparison

Each ELM scheme serves a different purpose and suits different farm situations:

Detailed scheme breakdown

Sustainable Farming Incentive (SFI)

SFI is designed as the 'entry-level' environmental scheme, accessible to all farmers with minimal bureaucracy. When it reopens in 2026, it will offer:

Agreement length
3 years
Minimum land area
No minimum - can apply with any amount of eligible land
Number of actions
102 actions in 2024 offer (may change for 2026 reformed scheme)
Payment range
£5.80/ha (soil assessment) to £853/ha (winter bird food)
Management payment
£40/ha first year, £20/ha years 2-3 (up to first 50 hectares)
Payment frequency
Quarterly payments starting approximately 4 months after agreement starts
Application process
Online via Rural Payments portal - will have specific application windows in 2026
Flexibility
Can add actions annually during upgrade window

SFI action categories and example payments

SFI actions are grouped into themes. Here are examples from each category with 2024/25 payment rates:

Soils and moorland

  • CSAM1 - Assess soil, test organic matter, produce plan: £5.80/ha
  • CNUM1 - Legumes on improved grassland: £102/ha
  • CIGL1 - Improved grassland soils: £58/ha
  • MOR1 - Assess and record moorland condition: £10.30/ha

Hedgerows and boundaries

  • CHRW1 - Assess and record hedgerow condition: £3/100m
  • CHRW2 - Manage hedgerows: £10/100m
  • CHRW3 - Maintain or establish hedgerow trees: £10/100m

Arable and horticultural

  • CAHL1 - Pollen and nectar flower mix: £711/ha
  • CAHL2 - Winter bird food: £853/ha
  • CAHL3 - Grassy field corners or blocks: £590/ha
  • AHW1 - Winter cover crops: £129/ha

Integrated Pest Management

  • IPM1 - Assess IPM and produce plan: £1,129 per agreement
  • IPM2 - Flower-rich grass margins: £798/ha
  • IPM3 - Companion crop on arable: £55/ha
  • IPM4 - No insecticide on arable with IPM: £45/ha

Farmland wildlife

  • AHW6 - Nesting plots for lapwing: £474/ha
  • AHW7 - Unharvested cereal headland: £640/ha
  • AHW8 - Supplementary feeding for farmland birds: £827/ha

Countryside Stewardship (CS)

Countryside Stewardship offers longer-term agreements for environmental management. It has two main tiers:

Higher Tier status
OPEN - rolling applications by invitation from September 2025
Higher Tier agreement length
5 or 10 years
Higher Tier best for
SSSIs, commons, priority habitats, complex environmental features
Higher Tier application
By invitation only - requires pre-application advice from Natural England
Mid Tier status
Being integrated into new CSHT from 2025
Capital Grants
Standalone agreements for infrastructure - periodic funding rounds

Countryside Stewardship Higher Tier (CSHT) from 2025

The new CSHT scheme opened for applications in September 2025. Key features:

Eligibility requirements:

  • Must be invited to receive pre-application advice before applying
  • Priority given to expiring CS Higher Tier or HLS agreements
  • Farms with SSSIs, commons, or priority habitats
  • Approved woodland management plans

Who is being invited:

  • Farmers with existing CS Higher Tier or HLS agreements expiring in 2024/2025
  • Those with approved woodland management plans
  • Land managers with SSSIs or other designated sites requiring specialist management

Rolling applications: Unlike the old annual window, CSHT operates on a rolling basis with monthly start dates. Once invited, you work through pre-application advice, prepare your application, and submit when ready.

CSHT action categories and example payments (2025/26)

CSHT offers 99 base actions and 33 supplemental actions. Examples include:

Grassland management

  • CGS2 - Permanent grassland with low inputs: £151/ha
  • CGS4 - Manage grassland for target features: £323/ha
  • CGS25 - Legumes on improved grassland: £102/ha

Arable and horticulture

  • CAB1 - Nectar flower mix: £711/ha
  • CAB8 - Flower-rich margins: £798/ha
  • CSW6 - Winter bird food: £853/ha

Boundaries and trees

  • CBE3 - Management of hedgerows: £22/100m
  • CBE4 - Manage traditional orchards: £264/ha
  • CBE5 - Create traditional orchards: £471/ha

Water and peat

  • CSW1 - 4-6m buffer strip on cultivated land: £557/ha
  • CSW17 - Raise water levels in arable peat: £1,409/ha
  • CSW18 - Raise water levels in grassland peat: £1,381/ha

Landscape Recovery

Landscape Recovery is fundamentally different from SFI and CS. It supports large-scale, long-term, transformational change to land use.

Minimum project size
500 hectares (typically 500-5,000 hectares)
Agreement length
Up to 20+ years
Payment structure
Bespoke project-based agreements (not fixed rates)
Application process
Competitive funding rounds with two phases - development then implementation
Development funding
Up to £500,000 per project for planning phase
Implementation funding
Project-specific - negotiated based on outcomes delivered
Current status
Round 1 (22 projects) and Round 2 (34 projects) in development/delivery
Government commitment
£500 million over 20 years for Landscape Recovery

What Landscape Recovery funds

Landscape Recovery projects focus on:

  • Large-scale habitat restoration (peatland, wetland, woodland)
  • River and catchment-scale improvements
  • Nature recovery networks connecting fragmented habitats
  • Species recovery for priority species
  • Carbon sequestration at landscape scale
  • Net zero contributions through land use change

Who can apply

Landscape Recovery is open to:

  • Groups of landowners collaborating on a shared project
  • Individual landowners with 500+ hectares available
  • Partnerships between farmers, estates, conservation organisations
  • Public bodies where they are part of a wider collaborative project

This scheme is not suitable for most individual farms. Unless you have substantial land to commit to transformational change or are part of a collaborative project, SFI or Countryside Stewardship will be more appropriate.

Decision framework: Which scheme is right for you?

Work through these questions to identify your best starting point:

  1. Question 1: Do you need funding immediately?

    If YES: Countryside Stewardship Higher Tier is your main option (by invitation), or wait for 2026 Capital Grants round. If NO: You can wait for SFI to reopen (June 2026 for small farms/those without ELM agreements, September 2026 for all).

  2. Question 2: Do you have designated sites (SSSIs, commons, priority habitats)?

    If YES: Countryside Stewardship Higher Tier is likely required. Contact Natural England for pre-application advice. SFI actions are generally not appropriate for designated sites. If NO: You have more flexibility - consider both SFI (when it reopens) and CS Higher Tier.

  3. Question 3: How much flexibility do you need?

    High flexibility needed: SFI offers 3-year agreements with annual upgrade windows to add actions. Can commit long-term: CS Higher Tier offers 5-10 year agreements with higher payments for some options.

  4. Question 4: Do you need capital funding for infrastructure?

    If YES: CS Capital Grants fund fencing, water infrastructure, hedgerow planting, pond creation. If NO: SFI revenue payments may be sufficient for your needs.

  5. Question 5: What is your farm size?

    Under 50 hectares: SFI is designed for all farm sizes including small holdings. The June 2026 window prioritises small farms. 50-500 hectares: Consider SFI for baseline actions plus CS Higher Tier for specific environmental features. Over 500 hectares: May benefit from combining schemes, and Landscape Recovery may be relevant if you have land suitable for transformational change.

  6. Question 6: Are you part of a collaborative landscape project?

    If YES (500+ hectares collectively): Investigate Landscape Recovery funding rounds. If NO: Focus on SFI and/or Countryside Stewardship for individual farm agreements.

Combining schemes

You can hold agreements in multiple ELM schemes simultaneously. This allows you to maximise income from different types of environmental management.

What you CAN do

  • Hold SFI and CS agreements at the same time
  • Apply different schemes to different land parcels
  • Claim standalone Capital Grants alongside revenue agreements
  • Add compatible actions from different schemes to your farm

What you CANNOT do

  • Receive duplicate payments for the same action on the same land parcel
  • Stack incompatible actions (e.g., two different grassland prescriptions on the same field)
  • Claim for actions that conflict with each other's management requirements

Common combination strategies

Baseline + targeted approach: Use SFI for whole-farm actions (soil assessment, hedgerow management) while using CS Higher Tier for specific high-value environmental features (SSSIs, wetlands, priority habitats).

Revenue + capital approach: Claim revenue payments through SFI or CS options, while separately claiming Capital Grants for infrastructure improvements.

Transition approach: If your existing agreement is expiring, you may be able to apply for a new scheme on the same land once the old agreement ends.

What to do if you were affected by the SFI closure

The sudden SFI closure on 11 March 2025 affected many farmers who were planning to apply or had started applications. Here is guidance for different situations:

Application started but not submitted
Your incomplete application is no longer valid. You must wait for the 2026 reformed SFI scheme.
Was planning to apply in 2025
Consider Countryside Stewardship as an alternative. If not suitable, prepare for June or September 2026 SFI windows.
Received an agreement offer but had not accepted
Accept within 10 working days of the offer letter or it may be withdrawn. Check your Rural Payments portal.
Have an existing SFI agreement
No change - your agreement continues as normal. Payments continue quarterly as scheduled.
Expiring HLS or CS Higher Tier agreement
May have been eligible for limited July-August 2025 reopening. If missed, consider new CSHT from September 2025.

The reformed SFI 2026 scheme

When SFI reopens in 2026, it will operate differently from the 2024 offer:

Two application windows (not rolling applications):

  • June 2026: First window - prioritises small farms and those without existing ELM agreements
  • September 2026: Second window - open to all farmers including those who did not apply in June

Other announced changes:

  • Clear budget allocations published for each window
  • Advance warning before windows close (no sudden closures)
  • Possible agreement value cap to spread funding more widely
  • More targeted scheme design based on lessons learned

Full scheme details will be published before the June 2026 window opens. Monitor the Defra Farming Blog for updates.

Preparing your application

Regardless of which scheme you choose, good preparation improves your chances of success.

For Countryside Stewardship Higher Tier

  1. Check if you are a priority category: Expiring HLS/CSHT agreements, approved woodland plans, SSSI land
  2. Wait for invitation: RPA contacts eligible applicants on a rolling monthly basis
  3. Prepare for pre-application advice: Natural England or Forestry Commission will work with you
  4. Identify actions: Review the 99 base actions and 33 supplemental actions for your land type
  5. Allow time: The process from invitation to agreement takes several months

For SFI when it reopens (2026)

  1. Check your eligibility for the first window: Small farm definition and existing ELM status
  2. Update your Rural Payments data now: Ensure land parcels and business details are accurate
  3. Research available actions: Identify which actions suit your farm type and goals
  4. Consider starting points: Soil assessment actions are low-risk entry points
  5. Check compatibility: If you have other agreements, verify which SFI actions you can add

For Landscape Recovery

  1. Form or join a collaborative group: Most projects involve multiple landowners
  2. Develop a project concept: 500+ hectares with clear environmental outcomes
  3. Monitor funding rounds: Applications open periodically with specific themes
  4. Prepare robust proposals: Include environmental benefits, deliverability, value for money
THRESHOLD 50

Small farms - prioritised in June 2026 SFI window

land area threshold: 50

If your farm qualifies as 'small' under the forthcoming definition, you will be prioritised for the first SFI application window opening June 2026. This window is also for farmers without existing ELM agreements.

This is a significant advantage - less competition than the September window open to all farmers. Monitor the Defra Farming Blog for the precise definition to be published before June 2026.

Getting help and advice

Making the right scheme choice can significantly impact your farm business. Sources of support include:

Government and agency support:

  • Rural Payments Agency helpline: 03000 200 301 (Monday-Friday 8:30am-5pm)
  • Natural England: For Higher Tier queries and designated site management
  • Forestry Commission: For woodland-related actions
  • Catchment Sensitive Farming advisers: Free environmental advice in priority catchments

Industry and professional support:

  • NFU (National Farmers' Union): Member advice services including scheme planning
  • Tenant Farmers Association: Advice for tenant farmers on scheme implications
  • CLA (Country Land and Business Association): Advice for landowners
  • Independent agronomists: Many offer environmental scheme advice
  • Farm accountants: Can model financial impact of different scheme options
  • RICS (Royal Institution of Chartered Surveyors) rural surveyors: Farm Environment Plans and scheme applications