Minister for Food Security and Rural Affairs (Dame ): I am today updating the
House on the Sustainable Farming Incentive (SFI), one of this
Government's Environmental Land Management Schemes (ELMs) that
pay farmers to manage their land in ways that improve nature,
soil health, and the environment, alongside supporting
sustainable food production.
Farmers in England will soon be able to apply for the improved
SFI. Building on previous announcements, the revised scheme is
designed to be simpler to access and better suited to modern farm
businesses.
The new SFI cuts unnecessary complexity while continuing to
reward the practical actions that underpin productive, resilient
farm businesses, from healthier soils and cleaner water to better
habitats for bees, birds and other wildlife.
We have worked with farmers and industry to shape the new scheme,
backed by £240 million for new SFI agreements and building on
around £560 million already committed to farmers delivering over
39,000 live SFI agreements.
Applications are scheduled to open from 30 June 2026 for two
groups: small farms and farms without an existing ELM revenue
agreement. A second application window will open in September
2026, giving all farmers and land managers the opportunity to
apply.
The first application window opens with up to £60 million
available, followed by a second window opening in September to
all farms with the remainder of the £240 million budget
available.
The SFI offer in 2026 is an iterated version of the 2024 scheme.
For continuity, the large majority of scheme features will remain
as they were the look and feel of SFI should be familiar to
farmers who have applied previously. However, we have made some
improvements to produce a simpler and more streamlined offer.
In the previous version of SFI, a quarter of funding went to just
4% of farms. For SFI in 2026, we have introduced a new £100,000
annual agreement cap to help ensure funding reaches more farm
businesses. Each farm business will be able to hold one SFI26
agreement, helping spread available funding more fairly across
the sector.
The new offer also contains several actions which encourage the
reduced use of synthetic fertilisers in favour of more
sustainable options, cutting input costs and boosting resilience
to global market shocks such as the closure of the Strait of
Hormuz.
The Government has listened to farmers who said they need time to
understand the offer before applications open. We published Get
ready to apply guidance on GOV.UK on 6 May and near-final
versions of the scheme guidance, terms and conditions, and
actions last week on 2 June, allowing farmers to review the offer
available and consider which actions may work best for their farm
business. Final scheme guidance, developed with industry input,
will be published next week.
Alongside the new SFI offer, the Government is making at least
£50 million available for new Countryside Stewardship Higher Tier
agreements this year, helping farmers and land managers deliver
targeted environmental improvements where they can have the
greatest impact.
The Government is also progressing the next group of Landscape
Recovery projects expected to move into implementation this year,
supporting large-scale action to restore rivers and habitats
across England.
Together, these schemes form a comprehensive package of support
for farmers, helping to boost food production, strengthen farm
resilience and drive nature recovery, while underpinning the UK's
long-term food security.
