What is the SFI26 and what does it seek to achieve?
The Sustainable Farming Incentive 2026 scheme (SFI26) seeks to promote sustainable land management activities by providing funding to farms and land managers who undertake certain defined ‘SFI actions’ which are considered to promote food security and protect the environment.
When can I apply?
All farms and land managers can apply for SFI26 in the second window which is set to open in September 2026. The first window opened in June 2026 and should remain open until 28th August 2026 (subject to the allocation of available funds), but only for those who met certain eligibility requirements.
Are there any limits on what funding I can secure?
Yes, each farm business can secure only one funding agreement and this will be subject to a maximum agreement value of £100,000 per year of the agreement. These rules may be different for those with existing SFI24 or SFI23 agreements.
How do I know if I am eligible to apply for an SFI26 agreement?
In short, if you are a farmer or land manager, have management control of the land you want to secure funding for and have at least three hectares of agricultural land you may be eligible to apply. You will typically be considered to have management control of agricultural land if you are an owner-occupier or a tenant under a Farm Business Tenancy or an Agricultural Holdings Act tenancy.
Your land will also need to meet the specific eligibility requirements of the SFI action you want to secure funding for.
If you still wish to apply in the first window, in addition to the above, your farm business will need to have been registered with the Rural Payments Agency by 1 January 2026 and fall within the scheme’s definitions of a ‘small farm’ (or be a farm without an existing Environmental Land Management revenue agreement).
To be eligible to apply in the second window, your farm business will need to be registered with the Rural Payments Agency, but only by the date you wish to start the application.
How do I know if my land falls within the definition of ‘agricultural land’ for the purposes of the scheme?
The definition of agricultural land set out in the SFI26 rules encompasses arable land, permanent grassland and permanent crops.
I receive delinked payments- am I still eligible to apply?
Yes, although you will not receive double funding- so actions that receive delinked payment funding on a certain piece of land cannot also receive SFI26 funding.
What kinds of actions are eligible for SFI26 funding?
There are 71 actions eligible for funding. These cover diverse actions such as in-field grass strips, the growing of pollen and nectar flower mix, various types of organic land management and even beetle banks.
The government’s website has a tool which can be used to search for funded actions and where it is possible to filter for land type and areas of interest- SFI26 – Find funding for land or farms – GOV.UK.
If my land is eligible, will I automatically receive a SFI26 agreement offer?
No, you will only receive a SFI26 agreement offer if your land is eligible and there is still sufficient budget available in your application window. In previous years application windows have closed earlier due to entire budgets being allocated, so it is important to apply as soon as you are in a position to make an application.
What should I do and what might happen if I cannot comply with the terms of my SFI26 agreement once it is granted?
If you cannot comply with the terms of your SFI26 agreement you will need to notify the Rural Payments Agency of your situation and they advise you do this within 8 weeks of the situation arising. You will need to provide as much detail as possible about what in particular you cannot complete and why. The Rural Payments Agency may subsequently reduce or withdraw your SFI26 payments temporarily or permanently or even require you to repay some payments already received, although they do also retain the right to amend conditions you would normally have to meet to continue to receive payments. If the Rural Payments Agency makes a decision you do not agree with, you can make a complaint and ask for the decision to be reconsidered, if you do this within 60 days of being notified.
What may happen if the Rural Payments agency suspects that I have breached the terms of my SFI26 agreement?
If the Rural Payments Agency suspects a breach, they will carry out an investigation. They will consider the reasons for any suspected breach, such as ill health, adverse weather conditions and unforeseen financial circumstances such as bankruptcy. They will consider if you notified the Rural Payments Agency that you were not going to be able to comply with the agreement. If you do not agree with the outcome of the Rural Payments Agency investigation, you can ask for it be reconsidered within 60 days of you being notified of the decision.
The actions the Rural Payments Agency may take against you will depend on how serious they assess the breach to be. The Agency may allow you to rectify the breach, but they also have the power to amend or withdraw your SFI26 agreement, recover payments previously made and prohibit you from receiving payments under any environmental scheme for up to 2 years.
Hear more from our partners Letty Glaister and Alexander Waples on navigating complex legal changes and farming in an uncertain world: Farming in a volatile world: P…–The Cereals Podcast – Apple Podcasts.
