SFI streamlined with fewer actions and cap on payments

Defra Secretary unveils "simpler" scheme plus £345 million to fund innovation
Written by Mike Sims. First published on 24 Feb 2026.
Butterfly on flower

The new Sustainable Farming Incentive (SFI) offer will include fewer actions and a cap on agreements, Defra has confirmed.

Secretary of State Emma Reynolds unveiled the "simpler" scheme, which is due to re-open in June to farms under 50 hectares and those without a live Environmental Land Management (ELM) agreement.

It will include 71 actions, down from 102, with agreements capped at £100,000 per year.

The Secretary of State also announced £345 million of funding to support innovation, new technology and infrastructure to boost farm productivity.

'Introducing a cap on payments has risks'

CLA President Gavin Lane said:

“We are pleased Defra has listened to the CLA and industry to adapt the SFI scheme, increasing some payment rates and maintaining 71 actions, with a good spread to allow choice and flexibility for businesses.

“But introducing a cap on payments has risks; limiting the ambitions of those that can do the most for nature. This is counterproductive when the government has legally binding environmental targets and some may have no choice but to intensify production.

“Many farm businesses are facing some of the bleakest profitability conditions in a generation. The Basic Payment Scheme is virtually gone and SFI is an essential income stream to build business resilience and support sustainable food production. We will continue to work closely with Defra to ensure the scheme is as accessible and flexible as possible.”

A second application window will open to all farmers in September, with further details to follow.

As well as the SFI announcement, Defra confirmed a package of measures including:

  • £70 million for the Farming Innovation Programme to move cutting-edge research into practical tools, allowing farmers to cultivate new crops that will help them to grow their businesses.
  • £50 million for the Farming Equipment and Technology Fund to help farmers invest in equipment to improve productivity and animal health and welfare.
  • A new round of capital grants opening in July 2026 with increased funding of up to £225 million available.
  • Consultation on making vet visits mandatory for cattle, sheep and pig farmers in England.

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