SFI 2026 update June 2026 1

Another edition of guidance for the Sustainable Farming Incentive 2026 offer has been published, giving eligible farmers an early opportunity to review the scheme and prepare ahead of the first application window opening later this month.

Defra has published further guidance on the scheme information for this year’s Sustainable Farming Incentive, providing further clarity for farmers and land managers ahead of applications opening for the redesigned SFI26 offer.

Window 1 is expected to open from 30 June 2026 for two groups: small farms and farms without an existing Environmental Land Management revenue agreement. Before the wider rollout begins, a small number of eligible farmers will be invited to apply from around 18 June as part of a controlled testing phase for the application service. The window is expected to remain open for only two months and may close earlier if the available budget is fully allocated, making early preparation critical.

The latest publication includes an updated version of the terms and conditions for SFI26 agreements, the scheme rules, action requirements and supporting guidance to help applicants prepare for and manage an agreement. Final versions are expected to be published in mid-June before applications officially open.

The SFI26 offer is intended to support sustainable food production while funding practical actions that improve soil health, protect water quality, support nature recovery and strengthen farm resilience. Much of the structure remains familiar to those who applied under the 2024 scheme, although Defra says improvements have been made to simplify and streamline the offer.

Additional information published alongside the scheme highlights the practical and financial appeal of SFI, including quarterly payments to support cashflow, greater flexibility in choosing actions that fit individual farming systems, and opportunities to improve resilience and reduce reliance on external inputs. Example actions highlighted for arable, mixed and livestock farms include hedgerow management, herbal leys, grass buffer strips, pollen and nectar mixes and lower-input grassland options.

Farmers considering an application are being encouraged to prepare early by checking their digital maps are accurate, ensuring business contact details are up to date and confirming the correct permissions are in place within the Rural Payments service.

David Kinnersley, Partner and Head of Agribusiness, said: “The publication of further guidance for SFI26 scheme is an important step in giving farmers more certainty and more time to prepare. While the scheme will look familiar in many respects, this is still a good opportunity for businesses to review the updated guidance carefully, consider which actions genuinely support their farming system and make sure the practical groundwork is in place before the application window opens. For many farm businesses, early preparation will be key to making the most of the opportunities available.”

A second application window is due to open in September 2026 for all farmers and land managers, giving a broader range of businesses access to the scheme later in the year.

More information about SFI 2026

Top