Preparing your Sustainable Farming Incentive 2026 application
Webinar highlights
North Yorkshire-based ADAS agricultural consultant Tom Wilkinson presented his advice to farmers ahead of Sustainable Farming Incentive Window 2 opening to applications in September.
A quick summary of Tom’s webinar for those getting ready to submit their application
For many farmers, the Sustainable Farming Incentive (SFI) will require a more careful approach than previous rounds. The scheme is designed to be simpler, with fewer actions, three-year agreements, and no five-year actions. However, it also comes with tighter restrictions, reduced payment opportunities in some areas, and a new £100,000 annual payment cap per agreement.
Only one SFI 2026 agreement will be allowed per SBI number.
One of the biggest changes is the treatment of rotational actions. The area entered in year one will be the maximum area that can be included throughout the three-year agreement. Farmers will be able to reduce that area by up to 50%, but they will not be able to increase it later. This is why it is important to plan ahead and avoid entering too small an area if land is due to come out of another agreement.
The removal of management payments and management plans is another important change. Previous payments linked to soil management, nutrient management, integrated pest management, moorland plans and hedgerow records have been removed. For smaller farms, these payments often made up a significant proportion of the overall agreement value, so some businesses may find SFI 2026 less financially attractive than previous offers.
Farmers should also be aware of the limited-area actions. These cannot add up to more than 25% of the agricultural area on the holding. Options such as enhanced overwinter stubble, winter bird food, some grassland wildlife options and infield grass strips may still be valuable, but they need to be considered carefully within the overall farm plan.
For farms with existing SFI 2023 or mid-tier agreements ending before the end of February 2027, there will be an opportunity to apply in the September window and request a later start date. This could help avoid conflicts between schemes and support a smoother transition. However, farms with SFI 2024 agreements may still need to run schemes alongside each other, which can increase complexity.
There are still options that may work well for different farm types:
- Hedgerow management remains relevant for many.
- Grassland businesses may want to look at low-input grassland, legumes on improved grassland, or herbal leys, although the payment rate for herbal leys has reduced.
- Arable businesses may consider winter cover crops, summer cover crops, legume fallow, no-till, companion cropping, variable rate nutrient applications, or no insecticide options, depending on rotation, risk and business objectives.
Before you submit your application
- Check your land details now. Make sure land covers, land uses and mapping are correct before applying. Updates can still be submitted through the Rural Payments service.
- Review existing agreements. Look closely at SFI 2023, SFI 2024, mid-tier or Countryside Stewardship agreements to avoid conflicts.
- Request a HEFER. This will show whether historic environment features affect what actions can be used on your land.
- Plan rotational areas carefully. Do not underestimate year one areas if you may want to claim on more land later.
- Assess whether the reward is worth the commitment. SFI 2026 is a three-year agreement, so consider payment levels, record keeping, inspections, land control and adviser costs before applying.
Overall, SFI 2026 may pay less than previous rounds, but it is still likely to be worthwhile for many farms. The key is to build an agreement that fits your land, your rotation and your long-term plans, rather than chasing payments that may create conflicts later.
Watch the ‘everything you need to know’ webinar