SFI 2026 Outlined

Purpose and direction

• The Sustainable Farming Incentive remains focused on paying farmers to deliver environmental outcomes alongside food production.

• The 2026 offer is designed to be simpler, broader-access and more evenly funded across farms.

• Developed through stakeholder workshops and consultation across 2025–26.

• Intended to provide a stable framework for the rest of the Parliament, with refinements possible.

Scale and structure

• 71 actions in SFI26 (down from 102 in SFI24; 31 removed).

• Actions with low uptake or weaker value for food production/environment removed.

• Five-year actions reduced to 3-year agreements to improve accessibility, especially for tenants.

• Supplemental actions must be taken alongside their base action within the same agreement.

Application windows

• Eligibility: minimum 3 ha agricultural land.

• Window 1: opens June 2026 for ~2 months (may close early if budget filled).

• Open to small farms (≤50 ha) and farms without an existing RPA ELM revenue agreement.

• Window 2: opens September 2026 for all farms; duration depends on uptake.

Funding caps and limits

• Maximum agreement value: £100,000/year.

• One SFI26 agreement per farm business.

• Rotational actions: cannot exceed Year-1 area/value in later years.

• Enhanced overwinter stubble (AHW7): subject to a 25% whole-farm area cap (shared with nine other actions).

• SFI management payment removed (funds reallocated to widen access).

Payment rate changes

• Increases (uplands):

• UPL1 moderate grazing: £35/ha (from £20)

• UPL2 low grazing: £89/ha (from £53)

• UPL3 limited grazing: £111/ha (from £66)

• UPL8 shepherding remove stock ≥4 months: £74/ha (from £43)

• UPL10 shepherding remove stock ≥8 months: £102/ha (from £48)

• Uplifts apply to existing agreements too.

• Reductions (SFI26 only):

• Herbal leys: £224/ha (from £382)

• Winter bird food: £648/ha (from £853)

• Legume fallow: £532/ha (from £593)

• Adjusted to better reflect margins and keep productive land in food use.

Policy intent

• Spread funding across more farms and improve fairness.

• Avoid excessive land being removed from production.

• Support Environmental Improvement Plan goals, including doubling farms delivering wildlife resources by 2030.

• Full guidance and budget details to be published ahead of application windows, with updates as funding is allocated.