Guide
SFI closure and transition to future farming schemes
What the SFI closure means for farmers and how to plan for the transition. Covers what happens to existing agreements, options during the closure period, the reformed SFI 2026 offer, and alternative funding including Countryside Stewardship Higher Tier and Capital Grants. Essential guidance for farmers affected by the March 2025 SFI closure.
The Sustainable Farming Incentive (SFI) closed to new applications at 11:59pm on 11 March 2025. This was an unannounced closure that affected thousands of farmers who were planning to apply or had started applications.
If you are affected by the SFI closure, this guide explains what it means for you, what options you have now, and how to prepare for the reformed SFI scheme opening in 2026.
Key facts:
- SFI closed to new applications on 11 March 2025
- All existing SFI agreements continue unchanged
- A limited reopening for specific groups occurred July-August 2025
- Reformed SFI 2026 opens in two windows: June 2026 (small farms, those without ELM agreements) and September 2026 (all farmers)
- Countryside Stewardship and Capital Grants remain available now
What the closure means for you
The impact of the SFI closure depends on your situation. Use this table to understand what happens next:
- If you have an existing SFI agreement
- Nothing changes. You continue receiving payments under your agreement terms for the full 3 years. Agreements entered in 2024/25 run until 2027/28.
- If you were offered an agreement but had not accepted
- You must accept within 10 working days of the offer letter or the offer may be withdrawn. Check your Rural Payments portal immediately.
- If you started an application but did not submit before closure
- Your incomplete application is no longer valid. You could not submit after 11:59pm on 11 March 2025.
- If you had not yet started an application
- You cannot apply for SFI until the reformed scheme opens in 2026. Consider Countryside Stewardship or Capital Grants in the meantime.
- If you are in the SFI Pilot
- Pilot agreements continue to their scheduled end. You may be eligible for the 2026 reformed offer when your pilot agreement ends.
Limited 2025 reopening for specific groups
The government reopened SFI briefly in July-August 2025 for three specific groups who were disadvantaged by the sudden closure. If you were contacted by the RPA as an eligible applicant, you could apply during this window.
The three exception groups were:
- Farmers with expiring Environmental Stewardship Higher Level Stewardship (HLS) agreements in 2024 or 2025
- Farmers with expiring Countryside Stewardship Higher Tier (CSHT) agreements in 2024
- Farmers who needed assisted digital support to apply and were unable to complete in time
This reopening is now closed. The deadline was 11:59pm on 18 August 2025 (or 1 September 2025 for those granted extensions). If you missed this window, you must wait for the 2026 reformed offer.
The new SFI offer for 2026
The government announced a reformed SFI scheme at the Oxford Farming Conference in January 2026. The reformed scheme is designed to be simpler, fairer, and more targeted.
Key changes from the previous SFI:
- Two application windows: Not rolling applications - specific windows to manage budget
- Prioritised access: First window prioritises small farms and those without existing ELM agreements
- Clear budgets: Budget allocations for each window will be published in advance
- No sudden closures: Regular updates on budget allocation and warning before windows close
- Possible agreement value cap: The government is considering a cap to spread funding more widely
- First application window
- Opens June 2026 - for small farms and those without existing ELM agreements
- Second application window
- Opens September 2026 - for all farmers including those who did not apply in the first window
- Definition of 'small farm'
- To be confirmed before June 2026 - the government is consulting with stakeholders
- Definition of 'no existing ELM agreement'
- Covers SFI, Countryside Stewardship, and Higher Level Stewardship administered by RPA. Does not include private schemes or Landscape Recovery
- Scheme details publication
- Full scheme details to be published before the first window opens in June 2026
What existing SFI agreement holders should know
If you already have an SFI agreement, the closure does not affect you directly. Your agreement continues as normal with no changes required.
Payments continue as scheduled
You will continue to receive payments according to your agreement terms:
- First payment approximately 4 months after agreement start
- Subsequent payments every 3 months
- SFI management payment (up to £40 per hectare on the first 50 hectares)
Agreement modifications
You can still request changes to your existing agreement during your annual upgrade window. This allows you to:
- Add more land to existing actions
- Add new compatible actions
- Increase ambition levels where available
When your agreement expires
SFI agreements run for 3 years. When your agreement expires:
- Agreements started in October 2023 expire October 2026 - you may be eligible for the September 2026 reformed SFI window
- Agreements started in 2024 expire in 2027
- Agreements started early 2025 expire in 2028
The government will provide more details on transition arrangements for expiring agreements later in 2026.
Alternatives during the SFI closure
With SFI closed until June 2026, other funding remains available. Your main options are Countryside Stewardship and Capital Grants.
Countryside Stewardship Higher Tier (CSHT)
Countryside Stewardship Higher Tier is now the primary route for complex environmental agreements. It opened for applications in September 2025.
Is CSHT right for you?
- Best suited for farms with designated sites (SSSIs, commons), priority habitats, or landscape-scale environmental features
- Requires a Farm Environment Plan from a qualified adviser
- Agreements last 5 or 10 years (longer commitment than SFI's 3 years)
- Pre-application support available from Natural England and Forestry Commission
Capital Grants
Capital Grants provide one-off funding for infrastructure and equipment that delivers environmental benefits. These can complement existing agreements or be standalone.
What Capital Grants cover:
- Fencing, gates, and livestock handling
- Water infrastructure (troughs, tanks, pipework)
- Hedgerow planting and tree planting
- Pond creation and restoration
- Bird boxes, bat boxes, and other wildlife features
Capital Grants have periodic application rounds. Check GOV.UK for current availability - the 2025 round fully allocated in August 2025, with a new round expected in 2026.
Higher Tier Capital Grants
These standalone capital grants support items that deliver additional environmental benefits without requiring a full Countryside Stewardship agreement. They offer 3-year agreements for capital items.
You can apply for Higher Tier Capital Grants on land that is:
- Not in an existing agreement
- In an existing SFI, CS, or HLS agreement (if compatible and not duplicating funding)
- In a Landscape Recovery project (if compatible)
Other available funding
Beyond environmental agreements, consider:
Animal Health and Welfare Pathway
- Annual Health and Welfare Review: up to £557 per species
- Endemic Disease Follow-up: additional funded support
- Minimum animal numbers apply (11+ cattle, 21+ sheep, 51+ pigs)
Farming in Protected Landscapes (FiPL)
- For farms in National Parks, National Landscapes (AONBs), or the Broads
- Projects supporting nature recovery, climate, and landscape character
- Extended to March 2029
Farming Equipment and Technology Fund (FETF)
- Grants of £1,000-£25,000 covering 50% of equipment costs
- Periodic funding rounds - check GOV.UK for current availability
How to prepare for the 2026 SFI reopening
Even though you cannot apply until June 2026 (or September 2026 for most farmers), you can prepare now to be ready when applications open.
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Check and update your Rural Payments data
Ensure your land parcels, business details, and contact information are accurate in the Rural Payments portal. Mapping changes take approximately 2 weeks to process, so do this well before you plan to apply.
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Review your land and identify opportunities
Walk your farm and identify what environmental actions would work on which land parcels. Consider soil health, hedgerows, buffer strips, wildlife habitats, and water quality improvements.
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Monitor the Defra Farming Blog
Subscribe to defrafarming.blog.gov.uk for updates on the reformed SFI scheme. Full scheme details will be published before the first window opens. You will get notification when guidance is available.
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Understand what 'small farm' means for you
The government will publish a definition before June 2026. If you qualify as a small farm, you can apply in the first window and may face less competition.
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Check if you have an existing ELM agreement
The first window excludes those with current SFI, Countryside Stewardship, or HLS agreements. If your agreement is expiring in 2026, you may be able to apply for the new SFI when it ends.
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Consider Countryside Stewardship now
If you need income before June 2026 and CSHT suits your farm type, applying now may be better than waiting for SFI. You can hold both CS and SFI agreements on different land parcels.
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Document your current environmental actions
If you are already managing habitats, hedgerows, or other environmental features without payment, document what you are doing. This evidence supports future applications.
Financial planning during the gap
The period between March 2025 (SFI closure) and June/September 2026 (SFI reopening) creates a funding gap for farmers who were planning to enter environmental schemes.
Assess your situation
- Current income sources: Delinked payments (ending 2027), existing agreements, farming income
- Planned SFI income: What you expected to receive from SFI had you been able to apply
- Gap to bridge: The difference between your plan and reality
Options to consider
- Apply for what's available now: Capital Grants, Animal Health and Welfare Pathway, FiPL (if in a protected landscape)
- Consider CSHT: If you have qualifying land, a 5-year CS agreement may be more valuable than waiting for SFI
- Review farm costs: Identify efficiency savings to offset delayed scheme income
- Diversification: Farm shops, tourism, renewable energy can provide income while you wait
Small farms - first window priority
If your farm is classified as 'small' under the forthcoming definition, you will be prioritised for the June 2026 first application window alongside those without existing ELM agreements.
This is a significant advantage - the first window will have 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.
Contacting the RPA for support
If you have questions about your specific situation, contact the Rural Payments Agency.
- ruralpayments@defra.gov.uk
- Telephone
- 03000 200 301 (Monday to Friday, 8:30am to 5pm except bank holidays)
- Post
- Rural Payments Agency (CS), PO Box 324, Worksop, S95 1DF
- When calling
- Have your Single Business Identifier (SBI) and any agreement numbers ready
Key dates and timeline
Keep these dates in mind for planning:
- 11 March 2025: SFI closed to new applications
- July-August 2025: Limited reopening for exception groups (now closed)
- September 2025: Countryside Stewardship Higher Tier opened
- 8 January 2026: Reformed SFI 2026 scheme announced at Oxford Farming Conference
- Before June 2026: Full scheme details and 'small farm' definition published
- June 2026: First SFI 2026 application window opens (small farms, those without ELM agreements)
- September 2026: Second SFI 2026 application window opens (all farmers)
- 2027: Delinked payments end completely