Defra has published new guidance for the Sustainable Farming Incentive 2026 (SFI26), providing further detail on how this year’s offer is expected to operate. The guidance outlines eligibility requirements, application windows and key changes, giving farmers and land managers an opportunity to prepare ahead of applications opening later this month.
Final scheme documents are expected later in June, ahead of the first application window opening on 30 June 2026.
Key points from the new guidance
SFI26 is expected to open in two stages:
Window 1 is due to open on 30 June 2026 and is aimed at two groups: smaller farm businesses with 3 hectares or more, but no more than 50 hectares, of agricultural land; and businesses that do not currently have an Environmental Land Management (ELM) revenue agreement. There is no upper land area limit for businesses applying under the latter category. To qualify, businesses must also have had a Single Business Identifier (SBI) linked to agricultural land and been registered with the Rural Payments Agency (RPA) before 1 January 2026.
Window 2 is expected to open in September 2026 and will be available to all eligible farmers and land managers.
Ahead of the first application window, a limited number of eligible businesses may be invited to test the application service from 18 June.
Changes from the previous SFI offer
The guidance confirms several important changes compared with the previous SFI offer:
• The number of available options has been reduced from 102 to 71.
• Farm businesses will be limited to one SFI26 agreement.
• Agreement values will be capped at £100,000 per year.
• Agreements are expected to run for three years.
• Payments are expected to be made quarterly.
While several options have been removed from the scheme, including species-rich grassland, the cattle grazing supplement, winter cover following maize crops, nutrient management assessments and integrated pest management assessments, a number of popular options remain available. These include herbal leys, which will not be subject to a land area cap.
Preparing for the application window
For many farm businesses, the immediate priority will be to review the available options, consider how they fit within existing farming systems, and ensure that Rural Payments information, mapping and any necessary permissions are up to date ahead of the application window opening.
Early preparation will be particularly important if demand for the first application window exceeds available funding.
Outstanding questions
Some uncertainty remains over how SFI26 will interact with existing Countryside Stewardship agreements, particularly those due to end on 31 December 2026. It is not yet clear whether those agreement holders will be able to move directly into SFI26 through the September application window, or whether there may be a gap before they can enter the new scheme.
While Defra has confirmed that separate budgets will apply to both application windows, it has not yet published the overall SFI26 budget or the funding allocated to each window. However, it has acknowledged the wider transition challenges and indicated that it is exploring ways to minimise any gaps in support.
We will continue to review the details as further information and final scheme guidance are published. A link to the information currently available can be found here.
If you have any questions about SFI26 or would like assistance preparing an application, please contact our office.
