Farmers are being urged to prepare now for the launch of the revamped Sustainable Farming Incentive later this year.
It follows Defra confirmation that the SFI scheme will re-open for smaller farms and those without an existing agreement before the end of June. Other farms will be able to apply from September.
Funding outlook
Farmacy environmental services specialist Hannah Joy said SFI applications were likely to be high once scheme details are published this spring. The government has pledged £2.7bn a year for sustainable farming and nature recovery between 2026 and 2029.
The SFI closed promptly last March after running out of money. Defra secretary Emma Reynolds has confirmed it will reopen during the first half of 2026 – and hinted that it will be more focused with fewer options.
Application risk
Access to funding could be competitive and the application window could be short, said Ms Joy. Although details are scant, farmers should try to prepare now so they are ready when the scheme is relaunched.
“At the moment, we’re no clearer as to what shape SFI 2026 is going to take, but it’s likely that we could see some kind of capped funding to spread funds more equally, and potentially a short application window,” Ms Joy told an Agriculture & Water event, sponsored by Essex & Suffolk Water.
“Our advice is to prepare now, so that you’re ready to go as soon as more details become clear.”
Capital grants
Similar messages were delivered to farmers considering applications to Defra’s Capital Grants scheme, which supports environmental improvements such as water quality measures and natural flood management.
Farmers looking to apply for a capital grant in 2026 – particularly one of the higher value options, such as concrete for yards, sprayer fill areas, or farm tracks – should also ensure they are ready to apply in good time.
Some applications will require prior approval. This includes options needing the approval of a local Catchment Sensitive Farming (CSF) advisor. Where this is the case, farmers should speak to an adviser now so they are ready when the time comes.
Timing will be important to give the best chance of funding. Waiting until the grant application window opens could be too late. In 2024, the capital grant application was just one month long – too short for many farmers to meet the deadline.