The CLA (Country Land and Business Association) has commented on Defra’s ‘improved’ Sustainable Farming Incentive, which opens on 30 June, with a small group of farmers able to apply from 18 June to test the system.
Please see below for the CLA’s comment on SFI – embargoed. Full Defra release below.
CLA Deputy President Joe Evans said:
“This SFI budget announcement is welcome, but the funding may not stretch far enough. A £240 million budget is unlikely to meet expected demand.
“It is particularly important that farmers with agreements ending later this year are able to transition seamlessly into new agreements. With funding capped and application windows limited, there is a risk that some businesses will miss out, creating uncertainty at a crucial time.
“Defra must now ensure the application process runs smoothly and provide regular, transparent updates on the budget. If demand proves stronger than anticipated, ministers should be prepared to review the budget to avoid leaving viable applicants without access to the scheme.”
£290m for simpler, fairer, more accessible farming schemes
- £240 million for new and improved Sustainable Farming Incentive 2026 will boost farm resilience and deliver environmental benefits
- New approach will spread funding more fairly, target family farms and give farmers greater certainty, with the first window for small farms expected to open on 30 June
- At least £50 million for new Countryside Stewardship Higher Tier agreements to deliver targeted environmental improvements where they will have the greatest impact
Farmers in England will soon be able to apply for the new Sustainable Farming Incentive (SFI26), a simpler and fairer scheme designed to support family farms and meet the challenges of modern farming.
Developed with farmers and industry, SFI26 is backed by £240 million for new agreements, building on more than £560 million already committed. The scheme cuts red tape and pays farmers for taking practical steps that benefit their land – such as improving soil health, keeping waterways clean, and creating space for wildlife.
Applications are expected to open from 30 June 2026 for two groups: small farms and farms without an existing Environmental Land Management (ELM) revenue agreement. A second application window will open in September 2026, giving all farmers and land managers the opportunity to apply.
Among the new offer are several actions that encourage the reduced use of synthetic fertilisers in favour of more sustainable and environmentally friendly options, cutting input costs and boosting resilience to global market shocks.
At least £50 million will also be available for new Countryside Stewardship Higher Tier (CSHT) agreements this year, supporting targeted environmental improvements where they will have the greatest impact.
Together, these schemes will help boost food production, strengthen farm resilience, support nature recovery, and underpin the UK’s long-term food security.
Environment Secretary Emma Reynolds said:
“Farmers are fundamental to food security. They produce the food we rely on, support rural communities, and play a vital role in our economy.
“Under the previous Sustainable Farming Incentive, a quarter of funding went to just four percent of farms, so we have redesigned it to be simpler and fairer, helping more farms grow, boost productivity and protect the natural environment they depend on.”
Building on the Environment Secretary’s commitment at the Oxford and NFU conferences to reform the Sustainable Farming Incentive in partnership with farmers, this new offer delivers greater certainty, fairer access to funding and a simpler, more accessible scheme for farmers.
