Sustainable Farming Incentive Set to Reopen in 2026: What English Farmers Need to Know

English farmers have finally been given much-needed clarity on the future of the Sustainable Farming Incentive (SFI), following confirmation from Defra that the scheme will reopen in 2026 with a reformed structure designed to be simpler, fairer and more predictable.

The announcement, due to be expanded on by Defra Secretary Emma Reynolds at the Oxford Farming Conference on January 8, marks what the government has described as a “new era of partnership” between farmers and policymakers – with certainty and confidence at its core.

A Clearer Roadmap for SFI

One of the biggest frustrations surrounding SFI to date has been its stop-start delivery and lack of long-term visibility. Defra has now confirmed that the new SFI offer will open through two defined application windows, giving farmers greater confidence to plan ahead.

This clarity will be particularly welcomed by farm businesses making longer-term decisions around land use, investment and sustainability.

Two Application Windows Confirmed

Defra has confirmed the following structure for the re-launched SFI:

Application window	Opens	Who can apply
First window	June	Smaller farms and farmers without an existing environmental land management agreement
Second window	September	All farmers

The first window is designed to prioritise smaller farms and new entrants, while the second window will be open to all eligible applicants, with no size limit. Defra has committed to publishing clear definitions of what constitutes a “small farm” before applications open, following engagement with industry stakeholders.

Importantly, Defra has also pledged to:

Publish clear budgets for each application window
Provide regular updates on remaining funding
Avoid closing application windows without warning

A Simpler, More Focused SFI Offer

Responding to widespread feedback, Defra says the new SFI offer will be simpler and more focused, while still providing flexibility for different farm systems.

Key changes include:

Fewer actions, reducing complexity
A continued broad range of options to suit different farm types
Greater emphasis on actions that support sustainable food production

Defra is also reviewing how much land can be entered into actions that take land out of production. Previously, 10 actions were classed as “limited area” options. Under the new approach:

More actions may be capped to a small proportion of the farm
Payment rates for high-uptake, non-productive actions are under review

The aim is to ensure environmental actions work alongside food production, not in competition with it.

Improving Fairness and Accessibility

The government has stated it wants as many farmers as possible to benefit from SFI, supporting its wider goal of doubling the number of farms providing year-round wildlife resources by 2030, compared to 2025 levels.

Further details on how Defra plans to improve access and fairness will be published before the scheme launches, but the intention is clear: a more inclusive SFI that works for a wider range of farming businesses.

Additional Funding Announcements

Alongside SFI reform, the government is also set to announce:

£30 million over three years for a new Farmer Collaboration Fund, following recommendations from Baroness Batters’ Farming Profitability Review
A further £30 million next year through a three-year extension of the Farming in Protected Landscapes (FiPL) programme

These measures are aimed at supporting collaboration, resilience and profitability across the farming sector.

What This Means for Farmers

For many farmers, this announcement represents a turning point. With clearer timelines, defined application windows and a commitment to transparency, SFI is moving closer to being the reliable support scheme it was originally intended to be.

As full scheme details are published ahead of the June application window, now is a good time for farmers to:

Review their current agreements and eligibility
Consider how sustainable actions fit within their production system
Ensure farm records and data are up to date to support future applications