The £240 million budget for the Sustainable Farming Incentive (SFI) 2026 is “unlikely to meet expected demand”, according to the Country Land and Business Association (CLA),
It called on the Department for Environment Food and Rural Affairs (Defra) to ensure that the scheme is accessible to all who qualify for it.
CLA deputy president Joe Evans said: “This SFI budget announcement is welcome, but the funding may not stretch far enough.
“A £240 million budget is unlikely to meet expected demand.
“It is particularly important that farmers with agreements ending later this year are able to transition seamlessly into new agreements.
“With funding capped and application windows limited, there is a risk that some businesses will miss out, creating uncertainty at a crucial time.”
Evans went on to say that the department must ensure the application process runs smoothly and provide “regular, transparent updates” on the budget.
“If demand proves stronger than anticipated, ministers should be prepared to review the budget to avoid leaving viable applicants without access to the scheme.” he said.
SFI funding
Defra have confirmed the funding will be £240m, including £60m for the first window, which will open on June 30 for small farms and farms without an existing Environmental Land Management (ELM) revenue agreement.
A second application window will open in September 2026, giving all farmers and land managers the opportunity to apply.
If Defra do not allocate the full £60m in Window 1, they have committed to making that unspent budget would be available for Window 2.
The £240m for the SFI26 budget is in addition to the more than £560 million already committed to farmers delivering 39,000 live SFI agreements.
The scheme aims at cutting red tape and paying farmers for taking practical steps that benefit their land, such as improving soil health, keeping waterways clean, and creating space for wildlife.
The new offer includes several actions that encourage the reduced use of synthetic fertilisers in favour of more sustainable and environmentally friendly options, cutting input costs, and boosting resilience to global market shocks.
Defra have said that at least £50 million will also be available for new Countryside Stewardship Higher Tier (CSHT) agreements this year, supporting targeted environmental improvements where they will have the greatest impact.
Defra believes that these schemes will help boost food production, strengthen farm resilience, support nature recovery, and underpin the UK’s long-term food security.