After much delay, the new Sustainable Farming Incentive (SFI) will launch again later this year. The scheme is going to be redesigned with a ‘simpler and more targeted offer’, this will mean less actions to choose from and they will probably only inlude actions that they see as better value for money. Full details will be published before the first application window opens.
The first application window will open in June 2026 and will be specifically targeted at:
- Smaller Farms: Defra is consulting on a precise definition, though a 50-hectare threshold is currently being considered as the benchmark
- New Entrants: Farmers who are not currently enrolled in any existing Environmental Land Management (ELM) agreements (such as previous SFI versions or Countryside Stewardship)
The second application window will opn in September 2026 and will be open to all eligible farmers who don’t meet the criteria for the June application. Each application window will have its own budget, with regular updates on uptake to ensure no sudden closures without warning.
The revised scheme will also have new measure to prevent a few large farms from absorbing the majority of the budget. The government will introduce caps on the amount individual businesses can claim and limiting the area of land that can be taken out of production.
Full guidance, including final payment rates and specific eligibility definitions, will be released by Defra shortly before the June window opens.
