Defra confirms changes to agri-environment schemes in 2026
The UK government has announced significant updates
The updates relate to the governments agri‑environment funding programmes for 2026, including a streamlined Sustainable Farming Incentive (SFI), the final round of the Farming Equipment and Technology Fund (FETF), and an expanded budget for Capital Grants.
The changes were outlined across Defra communications and sector briefings during and after the NFU Conference on 24–25 February 2026.
Rate changes
| Action | Old rate £/ha | New rate in SFI26 £/ha | Difference £/ha |
|---|---|---|---|
| UPL1: Moderate livestock grazing on moorland | 20 | 35 | +15 |
| UPL2: Low livestock grazing on moorland | 53 | 89 | +36 |
| UPL3: Limited livestock grazing on moorland | 66 | 111 | +45 |
| UPL8: Shepherding livestock on moorland (remove stock for at least 4 months) | 43 | 74 | +31 |
| UPL10: Shepherding livestock on moorland (remove stock for at least 8 months) | 48 | 102 | +54 |
| CSAM3: Herbal leys | 382 | 224 | -158 |
| CAHL2: Winter bird food | 853 | 648 | -295 |
| CNUM3: Legume fallow | 593 | 532 | -61 |
Farming Equipment and Technology Fund 2026: Final Round in Current Format
The next round of the Farming Equipment and Technology Fund (FETF) will run from 17 March to 28 April 2026, marking the final year of the scheme in its current structure.
Funding breakdown per theme
- £20 million – Farm productivity (4 items added)
- £20 million – Animal health & welfare (13 items removed, 4 added)
- £10 million – Slurry management (no changes)
Grant rules
- Funding per theme: £1,000–£25,000
- Maximum per farm: £75,000
- Applicants may apply once per theme.
Administrative changes
- Removal of the vet advice and new entrant score uplift.
- Removal of the option for a separate correspondence address—details must match the Rural Payments service.
- RPA will allocate funding after reviewing all applications.
Capital Grants: Funding Increased for 2026
A refreshed Capital Grants round will become available in July 2026, with funding increasing from £150 million to £225 million.
Defra plans to publish updates when 25%, 50% and 75% of the allocation is committed, signalling that funds may move quickly.
Farmers should ensure mapping and Catchment Sensitive Farming (CSF) approvals are up to date in advance of the application window. Further details are expected over the coming weeks.
Further details
For further details, you can visit or contact your local ADAS advisor through our contact form below.
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