Sustainable Farming Incentive

Sustainable Farming Incentive – Latest Information

The Sustainable Farming Incentive (SFI) continues to evolve, and the 2026 offer brings a clearer, more streamlined scheme designed to support profitable food production alongside meaningful environmental delivery. The latest version focuses on fewer, higher‑impact actions, simpler rules, and more predictable funding.

What’s New in SFI 2026?

Defra has overhauled the scheme with a major reset for 2026, reducing complexity and widening access for farms of all types and sizes. The key updates include:

A Simpler, Slimmer Offer

• The number of actions has been reduced from 102 to 71, removing those with low uptake or limited environmental benefit.
• Remaining actions focus on practical, measurable environmental outcomes across themes such as soils, wildlife, water, boundaries, nutrient management, moorland, agroforestry, and precision farming.

Updated Payment Structure

• A new £100,000 annual cap per farm business has been introduced to spread funding more fairly across the sector.
• Payment rates have been adjusted, with increases for many moorland grazing and shepherding options, and reductions on some high‑uptake arable and habitat actions (applying only to new SFI26 agreements).
• The previous management payment has been removed, with funding redirected to environmental actions.
• All actions now run on 3‑year agreements rather than five.

Eligibility

• Farms must have at least 3 hectares of agricultural land to apply.
• Only one SFI26 agreement is permitted per farm business.

How and When to Apply

SFI 2026 will open through two application windows:

• Window 1 (June 2026): Priority access for farms between 3–50ha and those without other live ELM agreements. It will remain open for around two months, subject to funding.
• Window 2 (September 2026): Open to all eligible farms, expected to stay open subject to available budget.

Additional Funding Opportunities

Defra has confirmed complementary support alongside SFI, including:

• Increased ELM Capital Grants from July 2026
• New rounds of Farming Equipment & Technology Fund and the Farming Innovation Programme
   

Support from Hubbards Seeds

As always, Hubbards Seeds can help supply seed mixes and products that align with many SFI actions, including grassland, wildlife, and soil‑improvement options. For advice on choosing the right SFI actions for your farm or sourcing suitable seed, contact your United Oilseeds Area Manager or the Hubbards Seeds team.

You can also check the details below for links to suitable mixes and options for certain actions.