£290 Million Boost for Farming Schemes – What SFI26 Means for Farmers

The Government has announced a new £290 million funding package to make farming support schemes simpler, fairer and more accessible for farmers across England. The announcement includes £240 million for the new Sustainable Farming Incentive (SFI26) and at least £50 million for new Countryside Stewardship Higher Tier agreements.

The revised scheme has been designed to support family farms, improve access to funding and provide greater certainty following concerns that previous schemes disproportionately benefited a small number of larger businesses. According to Defra, around a quarter of previous SFI funding was received by just 4% of farms.

Key Changes Under SFI26

The new Sustainable Farming Incentive will continue to reward farmers for actions that improve soil health, water quality, biodiversity and environmental resilience whilst maintaining food production.

Some of the headline changes include:

• A new annual agreement cap of £100,000 per farm business.
• One SFI26 agreement per farm business.
• Most actions moving to a standard three-year agreement.
• Removal of the SFI management payment for new agreements.
• New limits on adding land into rotational actions after the first year.
• A continued focus on practical, deliverable actions that support both farming and the environment.

The scheme will offer 71 actions for farmers to choose from, with a greater emphasis on sustainable food production alongside environmental outcomes.

Application Dates

The first application window is expected to open on 30 June 2026 and will be available to:

• Small farms.
• Farms without an existing Environmental Land Management (ELM) revenue agreement.

A second application window is planned for September 2026, when all farmers and land managers will be able to apply.

Additional Funding Available

Alongside SFI26, the Government has confirmed that at least £50 million will be available for new Countryside Stewardship Higher Tier agreements during 2026. These agreements are expected to support targeted environmental improvements where they can deliver the greatest impact.

The announcement follows the recent publication of the Capital Grants 2026 guidance, which will make £225 million available to support environmental improvements and farm infrastructure projects when applications open in July.

What Should Farmers Do Now?

Although full details are still emerging, farmers should begin considering:

• Whether their business will qualify for the June application window.
• Which SFI actions may fit alongside existing farming operations.
• How environmental schemes can complement business resilience and profitability.
• Opportunities to combine SFI agreements with Capital Grants and Countryside Stewardship funding.

With budgets expected to be allocated through application windows, early planning will be important for those wishing to take advantage of the available funding.

How Shoulers Can Help

Our Rural Professional team is closely monitoring the rollout of SFI26 and related funding opportunities. We can assist with scheme applications, environmental land management planning, Countryside Stewardship agreements, Capital Grants and wider farm business advice.

If you would like to discuss how the new schemes may affect your business, please contact a member of our Rural team.