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Clarity on the SFI26 Offer for Farmers and Land Managers

There has been plenty of noise around the Sustainable Farming Incentive (SFI) 2026 offer and it’s easy to see why; confirmed detail is still limited, and different interpretations are circulating across the industry. In response to the questions we have been receiving from clients, this update is designed to give farmers and land managers a clear, reassuring summary of the SFI26 application windows and the key aspects which differ from previous rounds. All points below reflect Defra and RPA guidance available to date and may be refined as further information is released in the coming weeks.  

Application Window Eligibility Criteria  

There will be two application windows for SFI26:

Window 1: June 2026

When the first application window opens in June, it will be open to two separate groups. You only need to fall into one of these groups to be eligible to apply in this window:

  • Small farms (3-50ha) with or without an existing ELM revenue agreement
  • Farms of any size without an existing ELM revenue agreement 

In addition, the Single Business Identifier (SBI) number must have been registered with the RPA before 1st January 2026. If you have created a farming business this year, you can still apply for SFI26, but only through the September application window.

Window 2: September 2026

  • Open to all farms with at least 3 hectares of agricultural land. 

For this window, your SBI number needs to be registered at any time before the application date.

Land Eligibility Requirements 

To be eligible to apply in either window, your SBI number must have at least 3 hectares of agricultural land registered to it. The SFI agreement itself can be for less than 3 hectares. Agricultural land is defined as land registered by the RPA with the following land covers: arable land, permanent grassland, or permanent crops.  

SFI26 Agreement Limits 

Each farm business can only hold one SFI26 agreement per business, identified by its SBI number. Once an agreement is in place, the business cannot apply for another SFI26 agreement until that agreement ends.  

This represents a shift from earlier rounds and reinforces the importance of structuring applications carefully, particularly for businesses with diverse land uses or longer-term objectives.  

Businesses with an existing SFI agreement or other ELM revenue scheme can still apply for an SFI26 agreement, up to the £100,000 cap. Importantly, income received from an existing scheme does not reduce the amount you can apply for under SFI26.  

The ability to maximise limited area actions in earlier agreements does not prevent those limits being maximised again in SFI26. However, actions must not be double funded and must comply with eligibility and stacking rules across schemes.  

Further clarification on stacking actions across schemes is expected, and this remains an area where professional advice is particularly valuable.  

Commons Groups 

Commons groups will not be able to apply for SFI26 at this stage. The RPA has indicated that work is ongoing to develop a solution and further updates are expected. Until confirmation has been published, it is advised that commons land should not be considered or relied upon when planning an SFI26 application.   

Basing Decisions on Confirmed Guidance  

There is currently no confirmation from Defra on whether there will be an SFI27 scheme, or whether SFI26 will reopen in future years. As a result, it is not possible to say with certainty that a business will be able to apply for a further SFI agreement in future years. There are sources indicating that theoretically, you could be able to apply for SFI26, SFI27, and SFI28 – each up to £100,000 (£300,000 in total), but this has not been confirmed by Defra or the RPA, and our interpretation is that this will not be the case.  

As a result, it cannot be assumed that a business will have additional opportunities to apply for further SFI agreements beyond 2026. Decisions should therefore be based on confirmed guidance, rather than expectations of future reopening.  

Understanding the Longer-Term Funding Position 

While uncertainty remains around the scheme details and delivery, Defra has stated that it intends to keep the core SFI offer broadly consistent for the remainder of this Parliament, with multiyear funding confirmed through to 2028/29. 

After a prolonged period of sudden scheme closures and limited information, this provides some reassurance. However, the evolving nature of SFI reinforces the importance of forward planning, flexibility, and informed decision making.  

How GSC Grays Can Help 

With application windows approaching, now is the time to review eligibility, assess suitable actions, and understand how SFI26 can fit within your wider business objectives.  

Our team of experts support farmers and landowners across a range of environmental schemes, providing clear, practical advice tailored to individual circumstances. If you would like to discuss your options, or need support preparing an application, please contact us to speak with a member of the team.  

Call for free: 03333 059 059 or email farmconsultancy@gscgrays.co.uk    

 

Article by

James Bush
Director

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