Farming community reacts to SFI changes

Environment secretary Emma Reynolds has announced reforms to the Sustainable Farming Incentive (SFI), which are aimed at simplifying the scheme, levelling the playing field, and providing stable, predictable delivery.

There will be two application windows in 2026, with the first from June prioritising smaller farms and those without an existing agreement, followed by a second round from September for wider applications, the MP confirmed.

Environment secretary Emma Reynolds announced three changes to SFI. DEFRA confirmed that when the new offer opens later this year, it will be simpler. “We are streamlining the actions available to reduce complexity. There will still be plenty of choice, with a stronger focus on actions that support sustainable food production.

“We are also considering an agreement value cap to help share funding more fairly while delivering benefits for nature and climate. We will publish full details before the first application window opens in June, giving farmers time to understand the offer,” a spokesperson for the department said.

The environment secretary said during the conference: “I recognise that mistakes were made in the past, and that’s why I acted quickly, extending countryside stewardship mid-tier agreements and opening applications for the new and improved higher tier offer.

“I am determined to provide you with that same stability going forward. So we will publish full scheme details before the first window opens and set clear budgets for each window, just like with the capital grants offer last year.”

“There will be no more sudden, unexpected closures,” she confirmed.

The environment secretary also outlined a new £30 million Farmer Collaboration Fund to support farmer groups in growing their businesses, building partnerships and sharing best practices.

READ MORE: Oxford Farming Conference: Reforms to SFI announced  

‘Real ambition for a thriving agriculture industry’

NFU president Tom Bradshaw said that this is “encouraging” to see the DEFRA secretary of state’s real ambition for a thriving agriculture industry, as well as her commitment to working collaboratively with farmers and growers. 

“Domestically, creating policies that support productivity and growth remain key, and I am pleased to hear the secretary of state talk about the much-needed clarity coming ahead of each payment windows for the Sustainable Farming Incentive.

“Farming is a long-term investment, measured in years, not months, and clarity is essential for confidence. Transparency around the farming budget is critical to this. Without transparency, farmers and growers are unable to plan for their businesses’ future.”

Mr Bardshaw added that on a global scale, growing exports for British food abroad and ensuring imported products meet our productions standards will ensure our sector can compete on a level playing field.

“Important questions remain on the detail and delivery, from the 25-year Farming Roadmap to the rollout of the Farming Profitability Review. We want to work with government to drive these policies forward to create confidence and profitability for farming and growing businesses and ensure 2026 sees British farming achieve all it is capable of.”

NFU deputy president David Exwood added that, however, it is positive to hear about much-needed plans to reform the SFI and a commitment to work collaboratively with the industry; there is still a huge lack of detail that farmers and growers urgently need, and this uncertainty continues to undermine farmers’ confidence, ability to invest and do the best for their business.

“We recognise that the farming budget is finite and that SFI has to be spread more evenly across the industry, with a particular focus on the coming 12 months.

“But for farming and growing businesses to deliver the public goods the scheme originally set out to achieve, it is vital that it is accessible and relevant to all food producing businesses, no matter the size. That is why if there has to be an SFI funding cap, we support a cap per hectare for SFI agreements on farm.

“There are 27,800² farmers in agri-environment schemes whose agreements are set to expire at the end of the 2026/2027 financial year. With that deadline on the horizon, it is essential that we get a clear understanding from Defra about the SFI budget for the two application windows to allow continuity of environmental delivery that already exists of farm.”

‘Farmers finally have some much-needed clarity’

Country Land and Business Association (CLA) president Gavin Lane said that British farmers finally have some much-needed clarity on the short-term direction of DEFRA’s farming schemes after months of limbo.

“It is essential that all farmers can access the Sustainable Farming Incentive scheme as soon as possible, regardless of farm type or size, to deliver the greatest benefits to the environment.

“We welcome news of a collaboration fund and are pleased the Farming in Protected Landscapes programme has been extended, as CLA members have been using it to develop a wide range of projects that deliver for the environment and their businesses.”

Mr Lane added that the “long-term vision” for farming is key, and we look forward to working with DEFRA in developing the recommendations in the farming profitability review and the upcoming farming roadmap.”

“Smaller farms need support with advice, training, skills and facilitation, but this should be more nuanced than simple size designations, which risk undermining the scheme’s ability to deliver environmental improvements at scale.

“The CLA urges DEFRA to focus on rewarding environmental outcomes rather than imposing arbitrary caps based on farm size. Incentives should remain proportionate to the scale of delivery to ensure fairness, efficiency and maximum impact for the environment,” he concluded.

‘It’s encouraging to see the government recognising the role of small farms’

Martin Lines, CEO of the Nature Friendly Farming Network (NFFN), said that it is “good to finally have some clarity”, even if June still feels a long way off.

“We particularly welcome the commitment to prioritise smaller farms. Too often in the past, England’s agri-environment schemes have been a race to be first over the line, favouring those with the time and money to navigate complex applications. Many smaller, highly active farms are working flat out and simply don’t have the capacity to play that game.

“We’ve long advocated for a reward system that properly reflects the real public value delivered by smaller production systems. It’s encouraging to see the government recognising the role of small farms in supporting social cohesion, keeping people on the land, and ensuring public money for public goods genuinely rewards those systems.”

Mr Lines pointed out that at the same time, DEFRA’s focus remains on farmers who want to build, export and invest in new technology, which, according to the NFFN president, is not the day-to-day reality for most small-scale farm businesses.

“For many smaller farms, the real priorities are managing a changing climate, staying viable as costs rise, and competing in markets increasingly undermined by imports produced to lower standards. If policy is truly to work for smaller farms, it must be shaped around their real pressures and priorities.”

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