Agriculture & Farming

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.

UK-wide
Guide summary

The SFI scheme closed on 11 March 2025. If you have an existing agreement, it continues unchanged. If not, consider Countryside Stewardship or wait for the reformed SFI in 2026. Check if you qualify for the limited 2025 reopening.

  • Existing SFI agreements continue until their end date
  • Check your Rural Payments portal if you had an offer
  • Incomplete applications cannot be submitted after 11 March 2025
  • Limited reopening July-August 2025 for specific groups
  • Reformed SFI opens June 2026 for small farms
  • Countryside Stewardship and Capital Grants available now
  • SFI agreements last 3 years with quarterly payments
On this page
UK-wide

Related guides in Grants & Funding

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 (announced 8 January 2026) opens in two windows: 30 June 2026 (small farms of 50 hectares or less and/or those without an existing ELM revenue agreement) and September 2026 (all farmers)
  • The reformed scheme offers 71 actions with a £100,000 cap per agreement year
  • 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's application windows open (30 June 2026 for small farms and those without ELM agreements, September 2026 for all). 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:

  1. Farmers with expiring Environmental Stewardship Higher Level Stewardship (HLS) agreements in 2024 or 2025
  2. Farmers with expiring Countryside Stewardship Higher Tier (CSHT) agreements in 2024
  3. 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 the reformed SFI 2026 scheme at the Oxford Farming Conference on 8 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: The first window is for small farms (50 hectares or less) and/or those without an existing ELM revenue agreement
  • 71 actions: A streamlined set of actions compared with the 2024 offer
  • Clear budgets: Budget allocations for each window published in advance
  • No sudden closures: Regular updates on budget allocation and warning before windows close
  • Agreement value cap: £100,000 per agreement year, with one agreement per business, to spread funding more widely
First application window
Opens 30 June 2026 - for small farms (50 hectares or less) and/or those without an existing ELM revenue agreement. Minimum 3 hectares. An invited pilot starts around 18 June 2026
Second application window
Opens September 2026 - for all farmers including those who did not apply in the first window
Definition of 'small farm'
50 hectares or less, with a minimum of 3 hectares of eligible land
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 size and cap
71 actions; £100,000 cap per agreement year; one agreement per business

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 the first 2026 window opens on 30 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. The scheme reopened on 3 July 2025 with group caps (£25,000 each for water quality, air quality, and natural flood management items; £35,000 for boundaries), and £150 million was allocated by 1 August 2025. Guidance for the £225 million Capital Grants 2026 round was published on 28 May 2026, with applications opening in July 2026. Check GOV.UK for current availability.

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 rates from 22 January 2026: £447 dairy cattle, £647 beef cattle, £574 sheep, £648 pigs (visits claimable to 19 June 2027)
  • 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 up to £25,000 per theme (up to £75,000 across the three themes) covering 50% of equipment costs
  • Periodic funding rounds - the £50 million FETF 2026 round ran 17 March to 12 May 2026 and is now closed; check GOV.UK for future rounds

How to prepare for the 2026 SFI reopening

Even though you cannot apply until 30 June 2026 (or September 2026 for most farmers), you can prepare now to be ready when applications open.

  1. 1

    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.

  2. 2

    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.

  3. 3

    Monitor the Defra Farming Blog

    Subscribe to defrafarming.blog.gov.uk for updates on the reformed SFI scheme. You will get notification when new guidance is available.

  4. 4

    Check whether you qualify for the first window

    The first window is for small farms (50 hectares or less) and/or farmers without an existing ELM revenue agreement, with a minimum of 3 hectares of eligible land. If you qualify, you can apply from 30 June 2026 and may face less competition.

  5. 5

    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.

  6. 6

    Consider Countryside Stewardship now

    If you need income before the SFI windows open 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.

  7. 7

    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
LAND AREA 50

Small farms - first window priority

If your farm is 50 hectares or less (with a minimum of 3 hectares of eligible land), you qualify as a small farm for the first application window opening 30 June 2026, alongside those without an existing ELM revenue agreement.

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 latest scheme guidance.

SFI 2026 announcement (opens in a new tab)

Contacting the RPA for support

If you have questions about your specific situation, contact the Rural Payments Agency.

Email
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 (71 actions, £100,000 cap per agreement year)
  • Around 18 June 2026: Invited SFI 2026 pilot begins
  • 30 June 2026: First SFI 2026 application window opens (small farms of 50 hectares or less and/or those without an ELM revenue agreement)
  • September 2026: Second SFI 2026 application window opens (all farmers)
  • 2027: Delinked payments end completely