Size of SFI 2026 funding pot revealed: "It may not stretch far enough"

Farmers in England will soon be able to apply for the new Sustainable Farming Incentive (SFI26), with Defra confirming the budget of £240m.

Of this total budget for SFI26, £60 million has been allocated to window 1 for small farms and farms without an existing Environmental Land Management (ELM) revenue agreement. It opens on 30 June.

The CLA has welcomed the announcement but warned the funding may not be enough if demand is strong, as expected.

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.”

A second application window is due to open in September 2026, giving all farmers and land managers the opportunity to apply.

At least £50 million will also be available for new Countryside Stewardship Higher Tier (CSHT) agreements this year.

A new £100,000 annual agreement cap is also being brought in.