Brown&Co
Reformed Sustainable Farming Incentive (SFI) 2026
The new Reformed SFI is set to open in 2026. The key changes announced so far are:
- Set budget allocations – making applications a competitive process
- A reduced number of actions compared to the previous SFI Expanded offer
- Two application windows
- 1st Anticipated June 2026
- 2nd Anticipated September 2026
Defra are currently considering implementing an agreement value cap to deliver funding more evenly to the industry, however it is currently unclear how this will work.
June 2026 – First Application window
We are currently anticipating 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’ – we currently await the definition of a small farm.
The budget for this round of funding has not yet been announced.
September 2026 – Second Application window
Defra also published that a second window will rollout wider to all farmers, including those eligible in the first window that did not apply.
The budget for this round of funding has not yet been confirmed.
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
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 intend for the reformed SFI to be more focused on supporting sustainable food production. As such, payment rates for actions that take land out of production are being reviewed, as well as limiting the area that these actions can be entered into.
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.
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’ and farmers who do not currently hold an environmental land management agreement. It is currently unclear what the definition of a small farm is. The second round will be open to all farmers.
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?
At least 3 years. Some agreements can last up to 5-years depending on what actions you choose to take.
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