Environmental Land Management (ELM) schemes replaced EU agricultural subsidies in England. With delinked payments phasing out by 2027, ELM schemes are now 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: Delinked payments (replaced BPS from 2024, after BPS ended on 31 December 2023)
Application required: No - payments automatic based on historical BPS reference amount
2025 payment reductions: 76% cut on first £30,000; 100% cut on amounts above £30,000 (max payment £7,200)
2026/2027 payment reductions: 98% cut on first £30,000; 100% cut on amounts above £30,000 (max payment £600)
Payment schedule (from 2025): Single instalment from 1 August each year
Final payments: 2027 (scheme ends completely - no payments from 2028)

Delinked payments replaced the Basic Payment Scheme (BPS) from 2024, after BPS ended on 31 December 2023. These payments are being phased out progressively until 2027, with reductions increasing each year.

No action required - if you received BPS payments historically, delinked payments are calculated and paid automatically. You do not need to apply or maintain land in agricultural condition to receive them.

Progressive reduction rates

Year	First £30,000	Above £30,000	Maximum payment
2024	50% reduction	55-70% banded reduction	No cap (banded reductions)
2025	76% reduction	100% reduction	£7,200
2026	98% reduction	100% reduction	£600
2027	98% reduction	100% reduction	£600
2028	Payments end

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 when it reopens in 2026.

Current status: CLOSED to new applications (closed 11:59pm on 11 March 2025)
Closure type: Unannounced closure affecting farmers planning to apply or with incomplete applications
Existing agreements: Continue unchanged - payments and terms are not affected
Limited reopening (2025): July-August 2025 for exception groups only (now closed)
First reopening window: 30 June to 28 August 2026 - for small farms (50 hectares or less) and/or those without an existing ELM revenue agreement; minimum 3 hectares. Invited pilot from around 18 June 2026. Window 1 closed at 11:59pm on 28 August 2026
Second reopening window: Not yet open - Defra expects Window 2, for all eligible farmers and land managers, from 22 September 2026
SFI 2026 offer: 71 actions; £100,000 cap per agreement year; one agreement per business
Key change from old SFI: Two application windows per year (not rolling), clear budgets published in advance

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.

Your situation:

Existing agreement: Continues as normal - no action required
Offer received but not accepted: Must accept within 10 working days or offer may be withdrawn
Incomplete application: No longer valid - cannot be submitted
Had not yet applied: Must wait until the SFI 2026 windows (30 June 2026 or September 2026) or apply for Countryside Stewardship now

SFI26 details, definitions and what to expect (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 reformed SFI 2026.

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) status: OPEN - rolling applications by invitation since September 2025, with monthly agreement start dates
Higher Tier length: 5 or 10 years
Higher Tier application route: Invitation from the RPA, followed by mandatory pre-application advice from Natural England or the Forestry Commission
Mid Tier status: CLOSED - the last Mid Tier application round was 2023. Existing agreements continue
Capital Grants status: Periodic rounds - reopened 3 July 2025 with group caps (£25,000 each for water quality, air quality and natural flood management items; £35,000 for boundaries); the £225 million 2026 round ran from July 2026 and closed on 1 September 2026
Example capital item rates: Hedgerow planting BN11 (£22.97/m), hedgerow laying BN5 (£13.52/m), post and wire fencing FG1 (£6.34/m)

Countryside Stewardship pays for environmental land management in England, funded under powers in section 1 of the Agriculture Act 2020.

Countryside Stewardship today

Higher Tier (CSHT): The main route for complex environmental management, often on designated sites (SSSIs, commons) or priority habitats. Details were published in December 2024 and applications opened in September 2025 on a rolling basis. It is invitation-only: the RPA invites priority applicants, and you must receive pre-application advice from Natural England or the Forestry Commission before applying.

Capital Grants: One-off payments for items like fencing, gates, water troughs, hedgerow planting and bird boxes. Can be standalone or alongside revenue agreements. The scheme closed abruptly in November 2024, reopened on 3 July 2025 with group caps (£25,000 each for water quality, air quality and natural flood management; £35,000 for boundaries), and allocated £150 million by 1 August 2025. The Capital Grants 2026 round (£225 million) opened in July 2026 and closed to applications on 1 September 2026, its budget fully allocated.

Mid Tier: Closed - the last application round was 2023 and there is no annual February-August window. Existing Mid Tier agreements run to their end dates.

Example capital item rates

Hedgerow planting (BN11): £22.97/m
Hedgerow laying (BN5): £13.52/m
Post and wire fencing (FG1): £6.34/m

Land eligibility criteria: Land must be in England and suitable for environmental management. Some options require specific habitat types
Application route (CSHT): Wait for RPA invitation, receive mandatory pre-application advice from Natural England or the Forestry Commission, then apply through the Rural Payments portal at any time (rolling)
Agreement offer: If successful, receive agreement with options, payment rates, and management requirements
Annual claim process: Submit annual claims confirming delivery of options to receive payments

Countryside Stewardship (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 is a competitive, long-term environmental scheme supporting large-scale, transformational land use change. It is designed for collaborative projects between multiple landowners or very large individual estates, not typical individual farms. The scheme is currently closed to new entrants - no third round has opened - while Round 1 and Round 2 projects continue.

Minimum project size: 500 hectares (typically 500-5,000 hectares)
Agreement length: Up to 20+ years
Development funding: Up to £500,000 per project for planning phase
Implementation funding: Project-specific - negotiated based on outcomes
Government commitment: £500 million over 20 years (committed December 2025)
Current status: CLOSED to new entrants - Round 1 (22 projects) and Round 2 (34 projects) continue, with the first projects in delivery since August 2025

What Landscape Recovery funds

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

Who could apply (when rounds were open)

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

No further rounds have been announced - monitor GOV.UK and the Defra Farming Blog.

Landscape Recovery (opens in a new tab)

Landscape Recovery overview

Large-scale habitat restoration for collaborative partnerships. Currently 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. Three schemes operate with different purposes, lengths, and entry requirements.

Key updates for 2026/27:

SFI closed to new applications on 11 March 2025; the reformed SFI 2026 opens in two windows - 30 June to 28 August 2026 (small farms of 50 hectares or less and/or those without an ELM revenue agreement) and, expected from 22 September 2026, Window 2 (all eligible farmers and land managers) - with 71 actions and a £100,000 cap per agreement year
Countryside Stewardship Higher Tier is currently the main option for new environmental agreements (rolling, by invitation)
Schemes can be combined - you can hold agreements in multiple schemes simultaneously
ELM budget: £1,950 million in 2026/27 and 2027/28, rising to £2,000 million in 2028/29

Sustainable Farming Incentive (SFI) - Status: Window 1 (30 June to 28 August 2026, small farms and farms without an existing ELM agreement) has closed; Window 2 for all eligible farmers is expected from 22 September 2026
SFI - Agreement length: 3 years
SFI - Typical payment range: £58-£853 per hectare (SFI 2024 rates)
SFI - Best for: All farms, flexible entry; 71 actions in the SFI 2026 offer, £100,000 cap per agreement year
Countryside Stewardship (CS) - Status: Higher Tier (CSHT) OPEN - rolling applications by invitation since September 2025. Mid Tier closed (last round 2023). Capital Grants 2026 round opens July 2026
CS - Agreement length: Higher Tier 5 or 10 years
CS - Typical payment range: £151-£1,409 per hectare (CSHT)
CS - Best for: Environmental focus, designated sites, habitat management
Landscape Recovery - Status: CLOSED to new entrants - Round 1 and Round 2 projects continue
Landscape Recovery - Agreement length: Up to 20 years
Landscape Recovery - Payment: Project-based (bespoke agreements)
Landscape Recovery - Best for: Large-scale habitat restoration, collaboration between landowners
ELM budget: £1,950 million in 2026/27, £1,950 million in 2027/28, £2,000 million in 2028/29

Choosing between schemes

For new applicants: Until the SFI 2026 windows open (30 June 2026 and September 2026), Countryside Stewardship Higher Tier is the main route for new environmental agreements - rolling applications by invitation, with mandatory pre-application advice from Natural England or the Forestry Commission.

Combining schemes: You can hold agreements in SFI, Countryside Stewardship, and capital grants simultaneously, provided you do not receive duplicate payments for the same actions on the same land.

Existing SFI agreement holders: Your agreement continues as normal. You can add Countryside Stewardship options on different land parcels.

Environmental Land Management schemes overview (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 SFI closed until the 2026 application windows (30 June 2026 for small farms; September 2026 for all), explore alternative funding: Capital Grants, Animal Health and Welfare Pathway, and Farming in Protected Landscapes.

Gap period: March 2025 to June/September 2026 (15-18 months)
Countryside Stewardship Higher Tier: OPEN - 5-10 year agreements, rolling applications by invitation with mandatory Natural England or Forestry Commission pre-application advice
Capital Grants: Periodic rounds - reopened 3 July 2025 with group caps (£25,000 each for water quality, air quality and natural flood management; £35,000 for boundaries); the £225 million 2026 round ran from July 2026 and closed to applications on 1 September 2026 with its budget fully allocated
Animal Health and Welfare Pathway: OPEN - Annual Health and Welfare Review rates from 22 January 2026 are £447 dairy cattle, £647 beef cattle, £574 sheep, £648 pigs
Farming in Protected Landscapes (FiPL): OPEN until March 2029 - for farms in National Parks, AONBs, or the Broads
Farming Equipment and Technology Fund: Periodic rounds - up to £25,000 per theme at 50% of equipment costs; the £50 million 2026 round closed 12 May 2026

Best alternatives during SFI closure

Countryside Stewardship Higher Tier is the main route for complex environmental agreements. Best suited for farms with designated sites (SSSIs, commons), priority habitats, or landscape-scale features.

Capital Grants provide one-off funding without long agreements: fencing FG1 (£6.34/m), water troughs (£200-£500), hedgerow planting BN11 (£22.97/m), pond creation (£750-£2,000).

Consider applying now rather than waiting - CS and SFI agreements can be held simultaneously on different land parcels.

Funding for farmers 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 during the 15-18 month gap - what funding is available now and how to prepare for 2026.

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)

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