SFI26: Full details confirmed and what you need to know

With SFI26 details now confirmed, Hugo Ellis explains what’s changed, what’s coming and how to make the most of the opportunity.

After a turbulent year for farm policy—including the abrupt and deeply frustrating closure of the SFI in March 2025—Defra has now published full details of the revised scheme for 2026, including actions, payment rates and application windows for farmers in England.

And it wasn’t the only funding announcement. Defra’s February update also confirmed significant additional funding through Capital Grants, the Farming Equipment and Technology Fund and the Farming Innovation Programme. It’s taken a while, but there’s finally a lot to get to grips with. Here’s what’s changed and what it means for your farm.

A simpler, tighter scheme

First, the action list has been cut from 102 to 71. Defra has removed options with low uptake or limited environmental and food production value, with a sharper focus on biodiversity and water quality. Whether you agree with every decision or not, the intention is a scheme that’s easier to navigate and that doesn’t run out of money without warning, as happened last time.

The other headline changes are:

• A cap of £100,000 per year per farm business, with one agreement per farm
• Agreement length reduced from five years to three — better news for tenant farmers
• Rotational actions are locked at their Year 1 level (though they can move between fields to reflect cropping rotations)
• The £1,000 SFI management payment is gone
• Payment rates for moorland grazing and shepherding have increased
• Rates for herbal leys, winter bird food and legume fallow have been cut — in the case of herbal leys, by around 40%
• Rate reductions only apply to new SFI26 agreements; existing SFI23 and SFI24 rates are unaffected

When can you apply?

You’ll need at least three hectares to be eligible. Applications open in two windows:

• Window 1 (June 2026): For farms of 3–50 hectares and those without an existing ELM revenue agreement. Expected to stay open for around two months — or less, if the budget fills up quickly.
• Window 2 (September 2026): Open to all farms, with no fixed end date. As Defra has made clear, once the funding is committed, it’s committed.

What to do before June

The good news is there’s still time to prepare, and with rotational actions locked at Year 1 levels, it really is worth thinking through your application carefully before you submit rather than rushing in. A few practical steps to take now:

• Check your RPA mapping data to make sure land covers and field boundaries are correct.
• Confirm your eligibility and any existing scheme commitments to establish which window you fall into.
• Work through the 71 actions against your farm’s priorities. including soil health, hedgerows, water, and rotations, and think about what’s realistic to deliver alongside your production, labour and machinery. (You’ll find a list of actions here.)

Beyond SFI: other funding to be aware of

SFI26 isn’t the only opportunity on the horizon. The same February announcement confirmed £225 million for Capital Grants (reopening in July 2026, up 50% on last year), £50 million for the Farming Equipment and Technology Fund (FETF26, with applications open from 17 March), and £70 million for the Farming Innovation Programme.

Demand for capital grants in particular is expected to be high, so it’s worth having your mapping and Catchment Sensitive Farming approvals in order well ahead of July.

We’re ready when you are

We’ve been helping farmers across England to navigate SFI since the beginning and we know how much is at stake when a scheme like this opens. Terrafarmer offers a full end-to-end service to any farmer—from initial consultation and scheme design through to application, ongoing compliance support, and identifying additional Capital Grant and FETF opportunities alongside your SFI.

So, whether you’re applying for the first time or rebuilding plans that were shelved last year, we’re here to help, from early planning through to application and evidence. If you’d like to talk through what SFI26 (and other funding) could mean for your farm, please arrange a no-obligation call back using our Contact Form. We’re expecting a lot of interest, so the sooner we hear from you, the better!