SFI26 Window 2: the figures, the impact and the next steps

Tuesday this week marked the opening, and rapid closure, of window 2 of the Sustainable Farming Incentive (SFI) 2026. Few could have escaped the headlines across farming press, national press and social media reporting the surge in applications from the window opening and its eventual closure in less than six hours, as the available budget was allocated.

This article provides a reflection on the events of the day, its impacts and some next steps for those affected. It also covers what the CLA has done in the aftermath and our next steps.

The second window for SFI26, available to all farmers and land managers, opened on Tuesday 22 September. The final window budget was £253m, following reallocations within the farming budget and underspend from SFI26 window 1. Frustratingly, no confirmed timings for when the window would open were released, and window 2 eventually opened for applications at just after 10am.

The CLA is aware that many people had been checking whether the window had opened from midnight. The Rural Payments Agency (RPA) committed to publishing progress updates on budget allocation throughout the day. The first allocation update of 25% was received just over two hours later, and (along with interim updates of 50% and 75%) the full budget was assigned by just before 4pm.

That equates to a quarter of a billion pounds allocated in just under six hours, or just under £725,000 per minute.

Since the closure of window 2, Defra has released figures giving a sense of the scale of applications. Initial figures were released shortly after the closure, and Defra has since given more detailed information on the variety of applications. Key data on applications and agreements include:

• 12,204 successful applications were received for SFI26 window 2 with an average agreement value (per year) of £20,700
• 8,812 applications were received where applicants have an agreement expiring before 28 February 2027 (e.g. CSMT, HLS or SFI23). This meant they could make use of the start an application early (SAE) mechanism
• 1,168 applications came from applicants without a previous Environmental Land Management (ELM) agreement
• 2,224 applications came from applicants with current live agreements, where none of these expired before March 2027
• The majority of applications for window 2 were submitted by applicants with more than 50 hectares and an existing ELM agreement (9,379). Around 21% of applications in window 2 were from farm businesses with between 3 and 50 hectares
• For window 2, the three most popular actions have been: CLIG3 – manage grassland with very low nutrient inputs (7,415 applications), CHRW2 – manage hedgerows (4,310 applications), and CSAM3 – herbal leys (3,370 applications)

Successful applications will be processed in order of when applications were submitted over the coming weeks.

Applications

What the early release of information doesn’t tell us is the number of applicants who planned to apply but didn’t start before the window closed, those who started but didn’t complete before the window closed and those who started but experienced mapping problems, technical or system errors. We also understand that a number of applicants will have been forced to submit sub-optimal applications due to last minute alterations on actions chosen to ensure submission.

We expect that the number of people who were unable to enter SFI26 will run into the thousands. This will be both for those who would have been able to make use of the start an application early mechanism as well as those with only agreements expiring after this date.

Agreement value

At an average agreement value of £20,700. We know that farmers and land managers have a genuine desire to move to more sustainable farming, and the events of Tuesday 22 September will have damaging impacts on these desires.

Reacting to the events of the second SFI26 window, CLA Deputy President Joe Evans has said: "We have always been clear that in this round of SFI, there was insufficient budget allocated to enable farmers to continue delivering for the environment on behalf of society. Today has been a scramble for thousands of farmers desperately trying not to be left behind and we urge Defra to provide clear guidance to farmers who – despite their best efforts – will be unlucky and fail to secure an SFI26 agreement."

What next for successful applicants?

For the 12,200 applicants who were able to get into SFI26, there remains an anxious wait to find out the success of agreements. We suspect it may be some time before all schemes are offered agreements. Defra has confirmed that schemes will be processed in the order applications were made, and it may not be until the new year when the final agreements are offered. First payments are typically made three months after agreements commence.

What next for those who didn’t get applications in? 

For those applicants who missed out on SFI26 window 2, we want to reassure members that we are urging Defra to release information on the new SFI in 2027 and asking for a scheme entry window as early as possible.

However, this does not solve the immediate problems. Farmers and land managers take great pride in stewarding their land, and the agri-environment income is an essential part of their business profitability and for some, viability.

For some, who applied but were unable to submit, there may be positive developments, with Defra confirming that it is looking to contact two “exception groups” on the possibility of completing SFI26 window 2 applications where the following applies:

• ‘assisted digital’ farmers - who need the RPA to complete an application on their behalf
• ‘technical issue’ farmers - farmers who were prevented from applying because of a technical issue with the application service

The RPA has said it will “contact ‘started but not submitted’ Window 2 farmers in due course to confirm whether their applications will be withdrawn, or if they’re in an exception group and can continue with their application.”

There is likely to be strict criteria around making use of this option. Defra communications state that for applicants to fall within either group, they must have contacted the RPA beforehand. The CLA is urging Defra to provide clarity on what this means and communicate meaningful timelines for those who may be able to complete applications.

If you are not in these groups, the actions are limited for SFI26, but it is important to assess options, the impact on your business and work with your adviser if you have one.

A recent CLA blog, looking at SFI26 in trepidation of the second window opening, also offers other avenues of government support that farmers and land manager can consider. For example, Countryside Stewardship Higher Tier full offer and recently announced single focus agreements.

The CLA has already had meetings with Defra and the RPA, highlighting the problems for members and the industry. This includes the impact on businesses affected and the loss of environmental delivery, some of this long-term, and the resultant loss of faith in Defra and the RPA. The CLA’s top priorities are to get clarity on when the next SFI window will open, design a fairer approach to applications and address the budget shortfall. We are supporting the continuation of SFI to deliver for the environment and support sustainable farming practices, which would not happen without the funding.

CLA President Gavin Lane has written to the Treasury highlighting that the exceptional demand for SFI shows farmers are ready to deliver for the environment, but funding is failing to keep pace with that ambition. The CLA spending review submission, provided analysis that showed the annual SFI budget needs to be in the region of £1.5bn. We have been clear for some time that the budget Defra has been allocated was insufficient to support the range of environmental schemes farmers and land managers are intrinsically wanting to deliver.

Alongside the need for increased funding, the CLA is calling for greater transparency from Defra on how SFI budgets are allocated and managed, so that farmers and land managers can make informed business decisions and plan with confidence. We are also pressing Defra and the RPA to ensure that those who experienced technical problems during the SFI26 Window 2 application process are treated fairly and are not disadvantaged through circumstances beyond their control.

The CLA started a programme of work to shape the SFI27 several months ago, in anticipation of further refinements being needed. We continue to be in the room with Defra, the RPA, and other stakeholders working on how the design of these schemes can begin rebuilding confidence. As part of this, we are consulting with members through national and branch committees and would welcome individual reactions and opportunities with CLA members. Please contact jack.chivers@cla.org.uk if you would be interested in feeding back ideas on how future ELM schemes can better support environmental and sustainable farming.

The CLA has already received feedback from members about their experiences applying to SFI26 Window 2, helping us build a clearer picture of the issues that need to be reviewed by the Rural Payments Agency. However, the more evidence we gather, the stronger our case will be, so we encourage everyone who applied, whether successful or unsuccessful, to complete our short survey.

The survey closes on 1 October 2026, and every response will strengthen our lobbying efforts by providing robust evidence that we can present to Defra and the RPA as we push for improvements to future application rounds (please contact jack.chivers@cla.org.uk to share your experiences).

Members are able to make a complaint to the RPA, where they have experienced issues as part of their application experience, or would like to give direct feedback. The complaints procedure can be found here.