Farming is at the heart of our food security, the rural economy and environment.
Through the Farming Roadmap we published earlier this month, this Government has set out a clear long-term vision for a more profitable, productive and resilient farming sector, backed by practical support to help farmers invest in their businesses and plan for the future. A fair and accessible Sustainable Farming Incentive is a key part of delivering that vision, rewarding farmers for sustainable food production and environmental improvement while supporting farm profitability.
Today, I am pleased to confirm that the first application window for the Sustainable Farming Incentive 2026 (SFI26) is now open.
Window 1 is open to 2 groups:
small farmsfarms without an existing Environmental Land Management (ELM) revenue agreementThese groups have been less likely to enter SFI in the past, so this government is giving them priority access to SFI26 with the aim of expanding coverage and spreading available funding across more farms.
SFI pays farmers for practical, on-farm actions that support sustainable food production while benefiting the environment, from improving soil health and keeping waterways clean to creating space for wildlife and reducing reliance on synthetic fertilisers.
Previously, a quarter of SFI money went to just 4% of farms. To address this, we have restructured the scheme so that it is simpler, and making sure the budget can be distributed fairly across more farms. For example, we have introduced an annual agreement value limit of £100,000 per farm, and a rule that each farm business will only be able to have one SFI26 agreement.
We’ve also streamlined the number of actions to reduce complexity while still leaving plenty of choice for farmers.
SFI26 is backed by £240 million for new SFI agreements, building on more than £560 million already committed, and forms part of the government's record £11.8 billion investment in sustainable farming and food production over this parliament.
A budget of £60 million has been set aside for Window 1, with any unspent funding carried forward to Window 2, which will open in September 2026 for all farmers and land managers in England.
Window 1 is demand-led and will remain open for around two months, though may close sooner if the £60 million budget is fully allocated. The government will provide regular updates on the allocation of the Window 1 budget, giving farmers clear visibility of how quickly funding is being taken up.
We have also taken action to help farmers with soon-to-expire Environmental Land Management (ELM) revenue agreements. Normally, they would not be able to access the full SFI26 offer until their existing agreement ended. To help them, we are developing functionality in the SFI26 application service to allow them to apply early for SFI26, before their existing agreements expire.
This new functionality will be available for Window 2 from September. It will apply to farmers with soon-to-expire ELM revenue agreements such as SFI23 or Countryside Stewardship Mid Tier due to expire by the end of February 2027.
Some small farms eligible for Window 1 may wish to consider waiting for Window 2 to take advantage of this feature, given they will only be allowed one SFI26 agreement.
More detail is set out in this morning’s post (https://defrafarming.blog.gov.uk/2026/06/30/sfi26-window-1-now-open/) on Defra’s Farming Blog.
Farming is the backbone of our countryside and food security, and we are proud that today we are delivering on our promise and opening the first window of SFI26 for small farms and those without an agreement
https://www.theyworkforyou.com/wms/?id=2026-06-30.hcws161.0
seen at 09:59, 1 July in Written Ministerial Statements.