After months of uncertainty, the Sustainable Farming Incentive (SFI) has reopened to new applications in England this week.
The scheme, which supports farmers who adopt environmentally sustainable farming practices alongside food production, was unexpectedly closed to new applicants in 2025 after its budget was fully allocated. The relaunch is welcome news for many farm businesses that had been waiting for another opportunity to apply. Further information about the SFI can be found here:
The new SFI26 offer has been streamlined, with 71 actions available compared with 102 under the previous scheme.
HEAD LINES
There is now a £100,000 annual cap on each agreement, and the first application window, which opened on 30 June 2026, is initially aimed at smaller farms (less than 124 acres) and businesses without an existing Environmental Land Management (ELM) revenue agreement. A second application window is expected to open later in the year for all other eligible farmers.
For many farmers, SFI payments could provide a valuable additional income stream while supporting soil health, biodiversity and long-term farm resilience.
However, before entering into any agreement, it is important to understand how it may affect your wider farming business. Environmental agreements can have implications for land sales, agricultural tenancies, succession planning, diversification projects and future development opportunities
TIME SCALES
Just 48 hours after the window opened – 25% of SFI budget was already allocated.
Applicants will need to be quick!
IS IT WORTH IT?
The AHDB have prepared a Cost Benefit Calculator, which is a useful tool to assess whether the scheme and its actions are right for you and your farm. Unlike a simple payment calculator, it estimates the net financial benefit of SFI actions by considering both the income received and the likely costs of carrying out the work. The tool can be accessed here: https://tools.ahdb.org.uk/SfiCalculator
If you are interested please contact the office on 01829423183.