Environmental Land Management (ELM) schemes replaced EU agricultural subsidies in England. Delinked payments end after the 2027 scheme year, so ELM schemes become the main source of government support for farmers.

1. Understand the BPS to ELM transition

Start here to understand how Basic Payment Scheme payments are ending and what replaces them. Delinked payments drop to just £600 maximum by 2026-2027.

Scheme status: Replaced BPS in England in 2024
Application: Not needed; RPA pays automatically
Land or entitlements needed: None
2024 reductions: 50% to 70%, in four bands
2025 reductions: 76% up to £30,000; 100% above
2026 and 2027 reductions: 98% up to £30,000; 100% above
Payment timing, 2026 and 2027: Single payment from 1 August (planned)
Final year: 2027

The Rural Payments Agency (RPA) replaced the Basic Payment Scheme (BPS) in England with delinked payments in 2024. You do not need to apply, and you do not need any land or entitlements to receive them. RPA pays delinked payments each year from 2024 to 2027, and the amount falls each year because progressive reductions are applied to your reference amount.

Reductions by year

Year	Reduction on each band of the payment	Highest payment
2024	50% up to £30,000; 55% from £30,000 to £50,000; 65% from £50,000 to £150,000; 70% above £150,000	No cap
2025	76% up to £30,000; 100% above	£7,200
2026	98% up to £30,000; 100% above	£600
2027	98% up to £30,000; 100% above	£600
2028	Payments end

The 2026 and 2027 percentages are set by regulations made on 8 June 2026. The highest payments are what remains of the first £30,000 after the reduction.

Delinked payments: replacing the Basic Payment Scheme (opens in a new tab)

BPS delinked payments transition

Full details on payment reductions 2024-2027 and how to plan for when payments end completely.

2. Learn about SFI closure and reopening

The Sustainable Farming Incentive closed in March 2025. Learn what this means for you and what happened in the 2026 windows.

The Sustainable Farming Incentive (SFI) in England stopped accepting new applications on 11 March 2025. The SFI 2026 offer (SFI26) was then opened through two application windows: Window 1 from 30 June 2026 and Window 2 on 22 September 2026.

Your position

If you hold an SFI agreement, it continues on its terms.
If you receive an SFI26 agreement offer, accept it within 30 calendar days or the offer is withdrawn.
If you applied in Window 2, applications are processed in the order they were submitted, and offers are made only if budget remains.
If you did not apply, Defra has said eligible farmers will have another opportunity to apply in 2027.

SFI closed to new applications: 11 March 2025
Existing agreements: Unchanged: payments continue under their terms
SFI26 Window 1: Opened 30 June 2026 for two months; farms of 3 to 50 hectares, and farms over 3 hectares with no existing ELM revenue agreement
SFI26 Window 2: Opened and closed on 22 September 2026; all farmers and land managers with an SBI and at least 3 hectares of eligible land
SFI26 agreement: Three years; 71 actions
SFI26 limits: £100,000 a year per agreement; one agreement per farm business; no management payment
SFI26 offer acceptance: 30 calendar days
Next application opportunity: 2027, details to be published by Defra

Progressing SFI26 applications from Windows 1 and 2 (opens in a new tab)

Sustainable Farming Incentive 2026 (SFI26): scheme information (opens in a new tab)

SFI closure and transition guide

What the closure means for different situations - existing agreements, affected applicants, and how to prepare for the next SFI offer.

3. Explore Countryside Stewardship Higher Tier

With SFI closed, Countryside Stewardship is the main route for new environmental agreements. Best for designated sites and priority habitats.

Higher Tier (CSHT) opened: September 2025
Higher Tier length: 5, 10, 15 or 20 years, set by the action with the longest duration
Higher Tier actions: 99 base actions and 33 supplemental actions; supplemental actions need an eligible base action in the same application
Expression of interest: Woodland improvement, agroforestry, and single-focus agreements for species-rich grassland or scheduled monument management; no invitation needed for pre-application advice on these
Multi-action agreements: You cannot express an interest; wait for an invitation from Natural England for pre-application advice
Capital items in a CSHT agreement: Complete the works within 3 years of the agreement start and claim within 3 months of the end of that period
Capital Grants 2026: Closed for applications; 3-year agreements

Higher Tier (CSHT)

CSHT pays farmers and land managers to manage land in ways that protect, restore or enhance the environment and mitigate the effects of climate change. It can be used on woodland, farmed land, land managed for nature or a combination, including sites of special scientific interest (SSSIs), commons, woodlands and scheduled monuments.

You can submit an expression of interest for woodland improvement, agroforestry, and single-focus agreements for species-rich grassland or scheduled monument management. Submitting one does not guarantee an agreement. For an agreement with several actions you cannot express an interest: Natural England invites farmers and land managers, for example those with certain agreements coming to an end who want to continue the same actions, or who have completed preparatory work. You then get pre-application advice before you apply.

Capital Grants

Capital Grants 2026 offered 3-year agreements for capital items in six groups: boundaries, trees and orchards; improved water quality; improved air quality; improved natural flood management; assessments; and improvements. It is closed for applications.

Management control: You need management control of the land for the whole agreement period
Application route (CSHT): Expression of interest or invitation, pre-application advice, then an online application
Agreement offer: If successful, your agreement document sets out your actions and capital items

Countryside Stewardship Higher Tier (CSHT) (opens in a new tab)

Apply for Countryside Stewardship Higher Tier

For farms with SSSIs, priority habitats, or expiring HLS/CSHT agreements. Covers the 99 base actions, pre-application advice, and rolling applications.

4. Understand Landscape Recovery (closed to new entrants)

For large-scale, transformational projects (500+ hectares, up to 20-year commitments). Landscape Recovery is closed to new entrants - no third round has opened - while Round 1 and Round 2 projects continue, backed by a £500 million commitment over 20 years made in December 2025.

Landscape Recovery pays groups of farmers and land managers to carry out long-term, large-scale projects together. It is competitive and designed for collaborative projects or very large individual estates, not typical individual farms. The scheme is closed.

Minimum project size: At least 500 broadly connected hectares in England
Agreement length: Implementation expected to last 20 years or longer
Round 2 development funding: Up to £750,000 per project (round 2 guidance)
Implementation funding: Agreed during the project development phase
Status: Closed; Round 1 funded 22 projects

What Landscape Recovery supports

Net zero carbon emissions
Protected sites
Wildlife-rich habitat

Who could apply when rounds were open

Groups of farmers and land managers with management control of the land, or the consent of those who have it
A lead applicant who is not a land manager, such as a non-government organisation, private company or agent, acting for the land managers

Project areas that cross a national border qualify only for the land in England, and that land must be at least 500 hectares.

Landscape Recovery (opens in a new tab)

Landscape Recovery overview

Large-scale habitat restoration for collaborative partnerships. Closed to new entrants - understand how existing projects work and what would change if a new round opens.

5. Compare all three ELM schemes

Now that you understand each scheme, compare them side-by-side to decide which suits your farm's situation and goals.

Environmental Land Management (ELM) schemes replaced the EU Basic Payment Scheme (BPS) in England. There are three ELM schemes, with supporting capital items. They differ in purpose, agreement length and how you enter.

Sustainable Farming Incentive (SFI) - Purpose: Sustainable farming and land management actions that protect the environment, support food production and improve productivity
SFI - Agreement length: Usually 3 years
SFI - Entry: Application windows; both SFI26 windows have closed
Countryside Stewardship Higher Tier (CSHT) - Purpose: Complex environmental management, including SSSIs, commons, woodlands and scheduled monuments
CSHT - Agreement length: 5, 10, 15 or 20 years
CSHT - Entry: Expression of interest (woodland improvement, agroforestry, species-rich grassland, scheduled monuments) or Natural England invitation (multi-action agreements)
Landscape Recovery - Purpose: Large-scale, long-term projects by groups of farmers and land managers
Landscape Recovery - Agreement length: Implementation expected to last 20 years or longer
Landscape Recovery - Entry: Closed; land must be in England and at least 500 connected hectares

Choosing between schemes

With both SFI26 windows closed, Countryside Stewardship Higher Tier is the open route for new environmental agreements, and it needs either an expression of interest or an invitation, followed by pre-application advice from Natural England or the Forestry Commission. Landscape Recovery is closed.

You can hold agreements in SFI, Countryside Stewardship and capital grants at the same time, provided you are not paid twice for the same action on the same land.

If you hold an existing SFI agreement, it continues under the scheme information for its offer.

Funding for farmers, growers and land managers (opens in a new tab)

Compare ELM schemes

Detailed comparison of SFI, Countryside Stewardship, and Landscape Recovery - including payment rates, eligibility, and decision framework by farm type.

6. Bridge the funding gap while waiting for SFI

With the SFI 2026 offer closed, explore alternative funding: Countryside Stewardship Higher Tier, the animal health and welfare review, and Farming in Protected Landscapes. Capital Grants 2026 is closed.

While SFI is closed to new applications, other funding routes for farmers and land managers in England include Countryside Stewardship Higher Tier, capital grants, animal health and welfare funding and Farming in Protected Landscapes. The status below is as listed on GOV.UK's funding for farmers page on 1 October 2026.

Countryside Stewardship Higher Tier: Open from September 2025; expressions of interest for woodland improvement, agroforestry and single-focus agreements; invitation for other agreements
Capital Grants 2026: Closed for applications
Landscape Recovery: Closed; for groups of farmers and land managers on at least 500 connected hectares
Animal health and welfare review (cattle, sheep, pigs): Open all year; £258 to £1,844 per review or follow-up, depending on livestock type
Farming in Protected Landscapes: Open all year; for farmers and land managers in an area of outstanding natural beauty or national park; projects must end by March 2029
Farming Equipment and Technology Fund: Closed; grants of £1,000 to £25,000 for each grant theme

Countryside Stewardship Higher Tier is the main route for complex environmental agreements, such as land with designated sites or priority habitats.

Funding for farmers, growers and land managers (opens in a new tab)

Funding to improve animal health and welfare (opens in a new tab)

Farming Investment Fund (including the FETF) (opens in a new tab)

SFI alternatives during closure

Practical options while SFI is closed - what other funding is open and how to prepare for the next SFI offer.

gov.uk

Start your application (opens in a new tab)

Access the Rural Payments service to check your land data, verify eligibility, and apply for schemes.

Understand Environmental Land Management schemes

BPS delinked payments transition

SFI closure and transition guide

Apply for Countryside Stewardship Higher Tier

Landscape Recovery overview

Compare ELM schemes

SFI alternatives during closure

Start your application (opens in a new tab)

Official guidance

Understand Environmental Land Management schemes

BPS delinked payments transition

SFI closure and transition guide

Apply for Countryside Stewardship Higher Tier

Landscape Recovery overview

Compare ELM schemes

SFI alternatives during closure

Start your application (opens in a new tab)

Official guidance

Next steps

Open a second premises

Start importing goods to the UK

Transfer ownership of your business

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Plan the 2026 farm income and tax transition

Starting farming: complete compliance journey

Farmer compliance checklist

Regulations that apply to your farm