SFI Changes Announced for 2026

What’s new with the 2026 Sustainable Farming Incentive (SFI26)?

The Sustainable Farming Incentive (SFI) is being refreshed for 2026 to offer a simpler and fairer scheme that helps farmers support both food production and the environment. Here’s a clear overview of what’s changed, what to expect, and when you can apply.

A smarter, streamlined SFI offer

• This year’s offer includes 71 actions — down from 102 — designed to be less complicated and more useful for a wider range of farms.
• The focus is on actions that deliver good environmental outcomes while maintaining food production.
• This change responds to feedback from farmers, advisers and sector organisations.

When you can apply

There will be two application windows in 2026:

• Window 1 (June 2026): For smaller farms and farms without an existing Environmental Land Management (ELM) revenue agreement. A small farm is defined as up to 50 hectares of agricultural land.
• Window 2 (September 2026): Open to all farms.

To qualify for SFI26, your holding must have at least 3 hectares of agricultural land.

New rules on payments and limits

To make the scheme more equitable:

• No individual farm agreement can be worth more than £100,000 per year. This helps spread funding more widely.
• Each farm business can hold only one SFI26 agreement.
• There are limits on how much land can be used for certain actions so that too much land isn’t taken permanently out of food production.

Changes to actions and payments

• Some payment rates have been adjusted — both up and down — so the scheme better reflects real costs and encourages good land use. For example, Herbal Leys has decreased from £382/ha to £224/ha, and Winter Bird Food has reduced from £853/ha to £648/ha.
• The £1000 management payment that helped with transitioning into the scheme will no longer be offered under SFI26.
• Actions that used to require 5-year commitments are now 3-year commitments, making them more accessible, especially for tenant farmers.

What farmers can expect

SFI remains focused on supporting farmers to manage their land in ways that benefit the environment, wildlife and sustainable production — but in a way that’s clearer to understand and easier to work with.

Full details on all 71 actions and the payment rates are set out in the official guidance, which will be published before the first application window opens.

Roger Parry & Partners are well versed in the Sustainable Farming Incentive. In the last SFI window we submitted applications which totalled over £1 million annual income for our clients.

For help and advice please feel free to give your nearest office a call

Shrewsbury 01743 791336

Oswestry 01691 655334

Welshpool 01938 554499