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Sustainable Farming Incentive 2026

Guidance has now been published for farmers applying to the Sustainable Farming Incentive in 2026 (SFI26). The scheme aims to help farmers manage land in a way that improves food production and is more environmentally sustainable. There are a number of changes to the scheme and farmers are being advised to plan carefully.

Some of the payment rates are being reduced this year but there are also some increases, including the rates for livestock grazing and shepherding on moorland. Another change is the amount of land that can be included in the ‘enhanced overwinter stubble’ option – this is now restricted to 25% of the farmed area. There is an overall cap so that no SFI26 agreement can be worth more than £100,000 per year.

The scheme opens at the end of June to farmers with less than 50ha, or for those without an existing ELM agreement; the scheme will open to all farms at the end of September.

Focus of fund/fund aims:

Guidance is now available to help farmers plan their application to the SFI26

Application deadline:

Window 1 (small farms and farms without an existing ELM agreement): opens in June 2026 and will remain open for about 2 months. Window 2 (all farms): opens in September 2026 and will close when the budget is allocated

Fund description:

https://www.gov.uk/government/publications/sustainable-farming-incentive-2026-sfi26