SFI 2026: Delivery, requirements and what happens in practice

For the final part of our Sustainable Farming Incentive (SFI) series for farmers, land managers and CLA members, we pivot from understanding and preparing for the scheme, to design and delivery once an agreement is in place.

This article provides further guidance for applications in the first window, expected to open at some point in June 2026. This window is specifically for eligible for farms under 50 hectares and applicants that were not registered in a live Environmental Land Management (ELM) scheme on 1 January 2026. It’s also beneficial for those planning for the September window.

Across our previous articles, the CLA has set out the context for ELMs, outlined practical readiness steps for members to consider and given some background to the mechanics for SFI actions and payments.

This final piece focuses on how to design and deliver your SFI 2026 agreement, including how SFI interacts with other schemes, what is expected during an agreement and how monitoring, inspections and enforcement will likely operate.

The information below is designed to support an informed view of the scheme, rather than advocating participation.

Those applying for the June window, if eligible through not being in an ELM scheme as of 1 January 2026, may not have complications of previous schemes, but they will still need to ensure that the actions selected are compatible with requirements for land designations such as Sites of Special Scientific Interest (SSSIs).

Those applying in the September window will need to consider how the new scheme can complement on-going SFI agreements or other ELM schemes such as countryside stewardship mid-tier (CSMT) and countryside stewardship higher-tier (CSHT). On this, clear rules apply to ensure compatibility and prevent ‘double funding’. In practice, this means an activity can only be funded once, even if the applicant is part of multiple schemes. Additional constraints may apply where land has specific designations or obligations.

Members with live or older agri-environment agreements (such as Environmental Stewardship) should pay particular attention to how actions overlap. Even where two options appear similar, subtle differences in requirements may affect whether they can be combined.

CLA members have, in the past, found that where compatibility issues were only picked up some time after the agreement commenced, repayments of monies have been demanded by the RPA. This reinforces the importance of reviewing scheme guidance carefully and, where needed, seeking advice before committing to an agreement.

More broadly, SFI should be viewed as one part of a spectrum of ELM offers. For some businesses it may act as a standalone entry point; for others it may sit alongside or act as a stepping stone towards more targeted schemes.

SFI 2026 is built around 71 actions that can be selected and applied to specific areas of a holding. Only some will be appropriate in any location and will depend on the farming system and equipment available.

Generally, for arable systems, rotational actions such as overwinter cover, field margins or fallow-based actions may be more readily integrated into existing cropping plans. For livestock and grassland systems, actions relating to grassland management, taking corner blocks out of management and grazing supplements will be more relevant. Mixed systems may have greater flexibility but also require careful coordination to ensure that actions align across enterprises.

Rotational SFI actions allow movement of the action each year of the agreement, and similarly, change the total area of the action each year. But there are some restrictions for SFI 2026:

• Rotational actions cannot be increased from year-to-year, but they can be reduced. In practice, the action area could be reduced in year two, and the increased in year three if this does not increase above the original year one area.
• Rotational actions must remain workable over a three-year agreement period

Decisions taken at application stage have implications throughout the agreement. Actions need to be realistic within the operational rhythm of the farm, including requirements for labour, machinery and seasonal pressures.

Once an SFI agreement is in place, there are several core requirements that apply throughout its lifetime.

These broadly include:

• Delivering actions as agreed - each selected action must be carried out in line with its specification for the full agreement period.
• Maintaining eligibility and control - the applicant must retain management control of the land and ensure it continues to meet eligibility requirements.
• Submitting required declarations - this includes annual declarations and, where relevant, rotational action declarations.
• Keeping records - evidence of delivery must be retained to demonstrate compliance with scheme requirements.
• Notifying changes where required - certain changes in circumstances (for example, land transfers or loss of control) may need to be reported.

During the term of the agreement, it is not typically possible to remove actions or land from the agreement or end the agreement early. However, for certain cases (such as severe weather or where management control is unexpectedly taken from the applicant), the RPA asks that agreement holders get in touch as soon as possible. Through the email address ruralpayments@defra.gov.uk, agreement holders can outline their position, and the RPA will consider each on a case-by-case basis. Members should consider, and be aware, that there has historically been limited flexibility to alter agreements once they have started.

This reinforces the importance of thorough planning prior to the start of the agreement. Where the RPA suspects a breach that it has not been alerted to, it will undertake various investigations and, in principle, should also discuss these with the agreement holder. If a breach is confirmed, there will then be a due process towards consideration of outcomes including repayment of monies and penalties or restorative action being taken. There a complaints procedure which can be followed by agreement holders should they not agree with the RPA’s verdict.

As with other agri-environment schemes, SFI agreements are expected to be subject to monitoring and compliance checks.

This is likely to include a combination of:

• Self-reporting by agreement holders - through annual and rotational declarations
• Administrative checks - using information already held by the RPA
• Remote monitoring - such as satellite imagery or mapping data
• On-site inspections - where necessary

Land managers should expect that they may need to demonstrate that actions have been delivered as required. This does not necessarily mean a high burden of paperwork, but it does require clear and consistent record-keeping.

Examples of evidence may include:

• Field records or cropping plans (including field operation logs where relevant)
• Photographs of actions delivered
• Input records or grazing logs
• Maps showing where actions are located

Where inspections take place, they are generally expected to be proportionate and risk based. However, failure to meet requirements may result in payment reductions or other enforcement action.

While many details of SFI 2026 monitoring are yet to be formally confirmed, the direction of travel outlined in the recent RPA annual report and accounts (2024-2025) suggests increased use of digital tools and remote verification to support better targeted use of the RPA Field Team.

Taking the above into account, there remain several practical steps which you can usefully focus on as the SFI 2026 window opens and agreements move into delivery.

Much of this preparation can be administrative and operational rather than focusing on strategic decision making. However, this plays a critical role in ensuring that an application and any resulting agreement run smoothly in practice.

You may wish to revisit the following areas:

• RPA records and mapping - ensure that land parcels are correctly registered and mapped, and that business details, permissions and contact information are up to date. Issues here remain one of the most common causes of delay.
• Agreement design and action selection - check that proposed actions are realistic within the farming system and can be delivered consistently over a three-year period. Particular care should be taken where rotational actions, or area limits, apply.
• Compatibility with other agreements - review any existing or legacy scheme commitments in detail to ensure there is no overlap or risk of double funding.
• Operational planning - consider how SFI actions fit into rotations, labour availability, machinery use and seasonal pressures. Agreements are more likely to succeed where they align with existing workflows.
• Record-keeping and evidence - put simple systems in place from the outset to capture the evidence likely to be required. This can reduce the burden later if monitoring or inspections take place.
• Understanding scheme requirements - once final guidance is published, you should review the detailed rules for each action included in your application, rather than relying on earlier versions of the scheme.

None of these steps commit you to applying. Rather, they place businesses in a position to make an informed and timely decision, and to deliver effectively if they do proceed. Get more detailed information on the steps for your application here.

SFI presents an option for farmers and land managers to engage with environmental land management in a structured way. However, participation is not automatic, and it is reasonable for businesses to conclude that it may not be the right fit. If you are thinking about an application this year, you are encouraged to consider how the scheme aligns with your own objectives, systems and capacity before making decisions.

Focussing principally on the June application window, his four-part series provides a practical introduction to SFI 2026, particularly for those less familiar with ELM schemes. Across the series, we have covered:

• The policy context and where SFI fits
• Practical readiness and RPA requirements
• Actions, payments and agreement design
• Delivery, compliance and how the scheme operates in practice

This series will feed into a CLA’s upcoming webinar recording in early June, where these issues will be explored in more detail and your questions will be answered.

For further information, or to raise specific queries for the discussion, please contact jack.chivers@cla.org.uk or your regional adviser.

RPA Complaints Procedure: visit the government website

RPA Annual Reports and Accounts: annual report and accounts 2024-25