Significant updates announced, including a streamlined Sustainable Farming Incentive and the final round of the Farming Equipment and Technology Fund.


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Agriculture

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.

Find out more

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