Sustainable Farming Incentive reopens in 2026: key dates and how to prepare

What is happening

Defra has confirmed the Sustainable Farming Incentive (SFI) will reopen in 2026 after closing to new applications in March 2025. The reformed scheme will open through two application windows, with changes to the available actions, payment rates, and eligibility rules.

The SFI sits within the Agriculture Act 2020 framework, replacing the EU Common Agricultural Policy Basic Payment Scheme with payments for delivering environmental public goods. Around 85,000 agreements were held under previous SFI rounds, making this one of the largest farming support schemes in England.

What is changing in the reformed scheme

The 2026 SFI offer differs from the version that closed in March 2025 in several important ways:

• Streamlined actions: The number of available SFI actions is being reduced. Defra will publish the revised list before the June window opens.
• Limits on land taken out of production: New restrictions on how much farmland can enter options that remove it from food production, responding to concerns about food security.
• Revised payment rates: Payment rates are being reviewed where uptake was previously high. Some rates may be lower than in the previous round.
• Phased eligibility: The June window is restricted to smaller farms and those without an existing environmental land management agreement. All eligible farmers can apply from September.

Who can apply and when

June 2026 window: This first window is restricted to two groups:

• Smaller farms (size thresholds to be confirmed by Defra)
• Farmers who do not currently hold an SFI, Countryside Stewardship, or other ELM agreement

This prioritises farmers who missed out when SFI closed unexpectedly in March 2025 and those who have not yet entered any environmental scheme.

September 2026 window: Open to all eligible farmers in England, including those with existing agreements who wish to add further SFI actions.

What to do while you wait

While waiting for the SFI to reopen, you can take several steps to prepare and access other funding:

• Countryside Stewardship: Higher Tier and Mid Tier Countryside Stewardship agreements remain open. These can be combined with SFI actions on different land parcels.
• Capital grants: The Farming Equipment and Technology Fund and other capital grant rounds continue to open periodically. These fund equipment and infrastructure improvements independently of environmental schemes.
• Map your land: Review your land parcels on the Rural Payments service. Ensure your digital maps are accurate and up to date, as errors can delay applications.
• Review your soil and habitat data: Identify which SFI actions are most likely to suit your land. Having a soil management plan and habitat baseline will speed up your application.