£233 million fund to help more farmers boost food production and protect the land
Second application window for Sustainable Farming Incentive (SFI) 2026 opened on 22 September, backed by £233 million
A £233 million fund for farms opened today (Tuesday 22 September), part of the government’s pledge to support farmers and land managers to produce food sustainably.
The second application window of the Sustainable Farming Incentive (SFI) 2026 includes a £50 million boost announced by the Prime Minister in August, to help farmers hit by low yields and rising costs access a reliable income stream, in return for action to improve the environment. It also includes £3 million not allocated in the first application window.
The first window saw strong uptake, with 7,000 applications received including from many small farms, 3,100 new agreements going live by 1 September, and payments already reaching farmers’ bank accounts.
The package supports more drought-resilient, sustainable farming practices and forms part of a wider drive to give farming businesses breathing space on costs and grow the rural economy in every corner of the country.
Farming Minister Stephen Morgan said:
"Growing our own food is a matter of national security and part of our long-term plan for English farming, the Farming Roadmap.
"Farmers shouldn’t have to carry the risk of a changing climate alone, and this funding means more farmers can build the kind of resilient, sustainable businesses that can better withstand whatever the weather throws at them next.
"Our work and the Farming Roadmap are backed with real co-operation with our farmers, because more often than not the best answers for our countryside come from the people who work the land."
Rural Payments Agency CEO Oliver Munn said:
"We have worked hard to make this year’s scheme clearer, more focused and easier to navigate for farmers and land managers.
"The response to the first window shows strong demand, and our teams have been working at pace to turn applications into agreements and payments.
"As the second window opens, our focus is on giving applicants clear guidance, predictable processes and the confidence to apply when they are ready."
Every eligible farmer and land manager with at least three hectares of agricultural land can now apply. The government has made changes to SFI so that it is more focused, more transparent and fairer, meaning as many farmers as possible can benefit from an agreement and supporting the vision of the Farming Roadmap, the government’s long-term plan providing clear direction for the future of English farming.
Farmers whose current environmental land management agreements are due to expire by the end of February 2027, around 21,000 farms, will also be able to apply early for their next agreement before their existing one runs out. This includes any small farms who held off applying in the first window so they could use this new early-application option.
The government has worked closely with the sector to shape this year’s SFI offer and is committed to continuing that partnership as the scheme develops, putting power and decisions back in the hands of the people who work the land.
From: Department for Environment, Food & Rural Affairs, Rural Payments Agency and Stephen Morgan MP