The new approach will spread funding more fairly, target family farms and give farmers greater certainty.
Farmers in England will soon be able to apply for the new Sustainable Farming Incentive (SFI26), a simpler and fairer scheme designed to support family farms and meet the challenges of modern farming.
Developed with farmers and industry, SFI26 is backed by £240 million for new agreements, building on more than £560 million already committed. The scheme cuts red tape and pays farmers for taking practical steps that benefit their land - such as improving soil health, keeping waterways clean, and creating space for wildlife.
Applications are expected to open from 30 June 2026 for two groups: small farms and farms without an existing Environmental Land Management (ELM) revenue agreement. A second application window will open in September 2026, giving all farmers and land managers the opportunity to apply.
Among the new offer are several actions that encourage the reduced use of synthetic fertilisers in favour of more sustainable and environmentally friendly options, cutting input costs and boosting resilience to global market shocks.
At least £50 million will also be available for new Countryside Stewardship Higher Tier (CSHT) agreements this year, supporting targeted environmental improvements where they will have the greatest impact.
Together, these schemes will help boost food production, strengthen farm resilience, support nature recovery, and underpin the UK's long-term food security.
Environment Secretary Emma Reynolds said:
Farmers are fundamental to food security. They produce the food we rely on, support rural communities, and play a vital role in our economy.
Under the previous Sustainable Farming Incentive, a quarter of funding went to just four percent of farms, so we have redesigned it to be simpler and fairer, helping more farms grow, boost productivity and protect the natural environment they depend on.
Building on the Environment Secretary's commitment at the Oxford and NFU conferences to reform the Sustainable Farming Incentive in partnership with farmers, this new offer delivers greater certainty, fairer access to funding and a simpler, more accessible scheme for farmers.
Notes:
The Sustainable Farming Incentive (SFI) is a government scheme that pays farmers in England to manage their land in ways that improve nature, soil health, and the environment while producing food.
Of this total budget for SFI26, £60 million has been allocated to Window 1 for small farms and farms without an existing Environmental Land Management (ELM) revenue agreement. If we don't allocate the full £60m in Window 1, that unspent budget would be available for Window 2.
SFI26 will include a series of changes to make the scheme fairer, simpler, and more accessible:
- A new £100,000 annual agreement cap will help ensure funding reaches more farm businesses.
- Each farm business will be able to have one SFI26 agreement, helping spread available funding more fairly across the sector.
- The SFI management payment will end for new agreements, allowing more funding to be directed towards on-farm actions.
- A new cap on adding land to rotational actions after Year 1 will provide greater budget certainty and help support more agreements.
Nearly all SFI26 actions will move to a standard three-year agreement length, simplifying the scheme and improving access for tenant farmers.
- SFI26 scheme information (scheme rules and guidance, terms and conditions, and the 71 actions farmers can choose from) can be found HERE .
We expect CSHT to continue supporting important habitats such as species-rich grassland through new targeted agreements, with
