Farmers have had a difficult 2026: navigating the impact of extreme drought and hot weather, the ongoing rise in Bluetongue virus cases, and input price rises from the Middle East conflict.
The exceptional demand for the Sustainable Farming Incentive (SFI) demonstrates farmers’ desire to invest in the environment, because healthy soils and thriving habitats are fundamental for farm profitability, productivity, sustainability & resilience.
In anticipation of high demand, Ministers decided to allocate an additional £20m to Window 2, on top of the £50m announced by the Prime Minister in August, so that we could fund as many agreements as possible.
We have therefore allocated a total of £310m to new agreements across both application windows in SFI26, £253m through Window 2. These agreements will invest a total of £930m in environmentally sustainable farming over the next 3 years.
This year we ensured small farms and those new to Environmental Land Management (ELM) revenue schemes were prioritised - with an exclusive first window earlier in the summer.
Previously a quarter of SFI funding headed to just 4% of farms making claims. That is why we capped SFI26 agreements at £100,000 per year. We also reduced some payment rates for a number of actions in order to ensure the available budget could stretch further.
Still, we know some farmers who wanted to join SFI26 will be disappointed not to have secured an agreement this year.
In keeping with the commitments made in the Farming Roadmap 2050, we plan to offer an SFI scheme in 2027. We will look to open the 2027 offer as early as possible to ensure farmers can access funding.
We are ready to look at how we can improve SFI for next year – continuing our close work with farmers and stakeholders by listening to experiences and learning lessons from this window. As part of this, we are exploring alternatives to a first come, first served application process for SFI in 2027.
Farmers can still apply for Countryside Stewardship Higher Tier (CSHT) funding via the Expression of Interest (EOI) process. You can submit EOIs for woodland improvement and agroforestry, as well as new single-focus agreements for management of species rich grassland and scheduled monument management.
Next steps for SFI26
The RPA is working through queries from farmers and agents received via email as quickly as possible They have already returned calls for anyone who rang yesterday before Window 2 closed for applications.
Now Window 2 has closed, the Rural Payments Agency (RPA) will process applications as quickly and efficiently as possible.
As a reminder, if you started an application but did not submit it before Window 2 closed, you will not be able to submit it. This is because we closed the window when we had enough applications to allocate the full Window 2 budget.
We will allow two small ‘exception groups’, who contacted the RPA before Window 2 closed, to continue with their applications. They are:
- ‘assisted digital’ farmers - who need the RPA to complete an application on their behalf
- ‘technical issue’ farmers - farmers who were prevented from applying because of a technical issue with the application service
The RPA will contact ‘started but not submitted’ Window 2 farmers in due course to confirm whether their applications will be withdrawn, or if they’re in an exception group and can continue with their application.
Applications are processed in the order in which they were submitted. Some applications require additional checks and can therefore take longer to assess.
We will provide an update on when successful applicants can expect to receive their agreement offer in due course.
SFI26 Window 2 statistics at a glance
We are conducting a final analysis of Window 2 application statistics. We will publish an official statistics release at 9:30am on Friday 25 September.
Numbers have been rounded to help illustrate the overall picture and should be treated as indicative rather than exact.
These figures are based on the applications we received at the point we closed Window 2 for applications, and the information provided by applicants at the point of application. They do not reflect final agreement figures, as applications are still being processed and the RPA handles farmers in the exception groups. As a result, final contracted uptake, including the actions selected, areas covered and associated values, may differ from these initial figures.
Applications
Approximately 12,200 applications were submitted during Window 2. Against our budget of £253 million, this means the average agreement value applied for was approximately £20,700.
More than 8,800 of those farmers have an ELM revenue agreement expiring on or before 28 February 2027. The new functionality in the SFI26 application service allowed farmers to start an application early for the full range of available SFI26 actions on land in an existing ELM revenue agreement before that agreement ends. Previously, these farmers would have had to wait until their existing agreement ended before being able to do this.
Over 1,100 farmers who applied in Window 2 are farmers who don’t have an existing ELM revenue agreement.
Top 5 actions
Applicants selected actions across all 14 SFI26 action groups, reflecting the flexibility of the scheme and the diversity of farming businesses taking part. The most popular actions were:
CLIG3: Manage grassland with very low nutrient inputs – over 7,400 applications
The benefits of this action extend beyond biodiversity. When established alongside cropped land, species-rich grasslands can support the natural processes that underpin resilient food production. Flower-rich habitats provide resources for pollinators and other beneficial insects, while diverse vegetation offers shelter for species that contribute to natural pest regulation. These areas can also slow surface water movement, reducing soil and nutrient losses and helping to retain valuable resources within the farmed landscape.
CHRW2: Manage hedgerows – over 4,300 applications
Well-managed hedgerows can support the natural processes that contribute to resilient food production. Flowering hedgerows provide resources for pollinating insects, while their shelter and habitat benefits encourage populations of beneficial invertebrates that can contribute to natural pest regulation and integrated pest management. Hedgerows can also help reduce wind erosion, slow surface water movement and improve the retention of soil and nutrients within the farmed landscape.
CSAM3: Herbal leys – over 3,300 applications
This action aims to maintain an established herbal ley containing a diverse mixture of grasses, legumes, herbs and wildflowers that provide varied root structures throughout the soil profile.
The ley should include areas of flowering plants from late spring through the summer months, supporting biodiversity and providing valuable resources for pollinators and other wildlife. The purpose of this mixture is to produce a high volume of forage while minimising the need for inorganic fertilisers, improving resilience to drought, and helping to enhance and maintain the soil’s structure, carbon content, biological activity and overall fertility.
CAHL2: Winter bird food on arable and horticultural land – over 2,600 applications
This action supports the growth of a mix of seed-bearing crops that supply vital small seeds from late autumn through late winter for species like finches, buntings, sparrows, and partridges. The seed mix also encourages summer flowering plants that provide nectar and pollen for beneficial insects, including bumblebees, solitary bees, butterflies, and hoverflies. It also supports natural predators of crop pests through an integrated pest management (IPM) approach when strips or blocks are planted close to cropped areas.
CIPM4: No use of insecticide on arable crops and permanent crops – over 2,600 applications
By encouraging no insecticide usage, this SFI action protects beneficial insects like bees, butterflies, and natural pest predators, stops chemical residues from running off into nearby streams, rivers, and groundwater or drifting into the air.
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