Brown&Co
Reformed Sustainable Farming Incentive (SFI) 2026
The new Reformed SFI will open in June 2026. The key changes announced so far are:
- Set budget allocations – making applications a competitive process
- A cap of £100,000 per year for each SBI number
- A reduction in the number of actions from 102 to 71
- Two application windows
- 1st Anticipated June 2026
- 2nd Anticipated September 2026
Defra are implementing an agreement value cap of £100,000, per agreement, per year, which claims to deliver funding more evenly to the industry.
June 2026 – First Application window
This will be open to farmers who do not currently hold an existing Environmental Land Management Agreement
Defra have published that the first window will be open to ‘Small Farms’ – from 3 to 50 hectares in size.
September 2026 – Second Application window
Defra also published that a second window will roll out wider to all farmers, including those eligible in the first window who did not apply.
The second window will include farms larger than 50 hectares.
Brown&Co have a significant team of industry experts to provide independent advice on how you can benefit the most from SFI whilst complementing existing farming practices, as well as advising those considering change.
Set Budgets and Importance of Preparation
Whilst the value of the budget for the reformed SFI remains unconfirmed, the implementation of a financial limit to government spending is a big change compared to previous rounds of SFI funding. Once the budget has been allocated, the SFI will close for applications. As such, it will be more important than ever to ensure that your application is prepared before the window opens, with clearly thought-through actions that comply with scheme rules to avoid disappointment.
Reduced Number of Actions
Defra have reduced the number of actions from 102 to 71, with the lower uptake and less beneficial actions removed. The 31 actions removed are:
|
Arable |
Grassland |
Boundaries & Other Management |
|---|---|---|
|
AHW1 - Bumblebird mix |
GRH6 - Manage priority habitat species-rich grassland (endorsed) |
CSAM1 - Assess soil, test organic matter & produce a plan |
|
SOH4 - Winter cover following maize crops |
WBD5 - Manage intensive grassland adjacent to a watercourse |
CIPM 1 - Assess Integrated Pest Management and produce a plan |
|
SOH2 - Multi-species spring-sown cover crop |
WBD8 - Manage grassland to reduce nutrient levels in groundwater |
CNUM1 - Assess nutrient management and produce a review report |
|
OFA1 - Overwinter stubble (organic land) |
WBD9 - Nil fertiliser supplement |
CHRW1 - Assess and record hedgerow condition |
|
OFA3 - Supplementary winter bird food (organic land) |
BSF3 - Buffer in-field ponds on improved grassland |
CHRW3 - Maintain or establish hedgerow trees |
|
OFA6 - Undersown cereal crop (organic land) |
BSF5 - Protect in-field trees on intensive grassland |
GRH11 - Cattle grazing supplement (non-moorland) |
|
BSF2 - Buffer in-field ponds on arable land |
HEF5 - Control scrub on historic and archaeological features |
HEF2 - Maintain weatherproof traditional farm or forestry buildings in remote areas |
|
BSF4 - Protect in-field trees on arable land |
SPM2 - Keep native breeds on grazed habitats supplement (50-80%) |
HEF8 - Maintain designed or engineered waterbodies |
|
AHW12 - Manage woodland edges on arable land |
UPL9 - Shepherding livestock on moorland (remove stock for at least 6 months) |
|
|
PRF3 - Non-mechanical robotic weeding |
CMOR1 - Assess moorland and produce a written record |
|
|
|
UPL4 - Keep cattle and ponies on moorland supplement (minimum 30% GLU) |
|
|
|
UPL7 - Shepherding livestock on moorland (no required stock removal period) |
|
|
|
SPM4 - Keep native breeds on extensively managed habitats supplement (50-80%) |
Further amendments to some payment rates compared to the previous offer have been made:
| Action | 2024 Payment | 2026 Payment | Difference (£/ha) |
|---|---|---|---|
| UPL1: Moderate livestock grazing on moorland | £20/ha | £35/ha | +£15/ha |
| UPL2: Low livestock grazing on moorland | £53/ha | £89/ha | +£36/ha |
| UPL3: Limited livestock grazing on moorland | £66/ha | £111/ha | +£45/ha |
| UPL8: Shepherding livestock on moorland (remove stock for at least 4 months) | £43/ha | £74/ha | +£31/ha |
| UPL10: Shepherding livestock on moorland (remove stock for at least 8 months) | £48/ha | £102/ha | +£54/ha |
| NUM3: Legume fallow | £593/ha | £532/ha | -£61/ha |
| SAM3: Herbal leys | £382/ha | £224/ha | -£158/ha |
| AHL1: Pollen and nectar flower mix | £739/ha | £739/ha | |
| AHL2: Winter bird food on arable and horticultural land | £853/ha | £648/ha | -£205/ha |
To begin your SFI planning in time for the opening of applications, register your interest below to arrange a consultation
To find out more about future support schemes and how Brown&Co can maximise the value to your business, contact your local Brown&Co office to arrange a meeting.
Frequently Asked Questions
What is the Sustainable Farming Incentive (SFI)?
The SFI is part of Defra’s agricultural transition plan to move away from a direct payment support system, to a more environmentally friendly one, where farmers are paid based on environmental actions taken.
What is different about the new Reformed SFI?
The key difference is there is now a set budget for each round of applications, meaning the application process is now a competitive one. A timely application (when eligible) will be key.
In addition, there is now a cap of £100,000 for each year of agreements.
Why isn’t the scheme opening continuously like before?
Defra have changed this in an attempt to deliver funding in a more controlled way, which they believe will be fairer to all farmers. The amount of funding from the treasury for both rounds of the reformed SFI (2026) is yet to be confirmed.
Who will be able to apply for the Reformed SFI offer?
The first round will be open to ‘Small Farms’ from 3-50 hectares and farmers who do not currently hold an environmental land management agreement. The second round will be open to all farmers.
When can I apply?
The SFI application for this round starts from June for ‘Small Farms’ and then in September for all other farms.
What happens if I already have an SFI agreement?
You will be able to apply in the second round of funding, which is expected in September 2026.
How is SFI paid?
Quarterly – The first payment is made in the fourth month of the agreement, and every three months thereafter. The 4th quarters payment is received upon the submission of the annual declaration. To understand more about annual declarations, read more here about how we can help you maximise any existing agreements you have.
How long does an SFI agreement last?
An SFI agreement lasts 3 years. Actions with a 5-year duration will become 3-year actions in SFI26. This change is designed to simplify the scheme and make these actions more accessible for short-term tenant farmers.
What actions have been removed?
For specific actions that have been removed, click here.
What happened to the Single Farm Payment?
Farm Subsidies, such as the Single Farm Payment (SFP), Single Payment Scheme (SPS) and Basic Payment Scheme (BPS), were part of the European Union's (EU) Common Agricultural Policy (CAP). When the UK left the EU, the Agricultural Act (2020) set in motion the transition away from a direct farm subsidy support payment, known as Delinking. The Delinked Payments are currently being phased out, with the last payment being made to claimants in 2027.
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