NFU Conference 2026: Reforms to SFI welcomed by farming industry

During the first day of the NFU Conference 2026, environment secretary Emma Reynolds announced a £345 million boost for farming innovation, new technology and infrastructure, including £70 million for the Farming Innovation Programme and £50 million for the Farming Equipment and Technology Fund. 

Reynolds MP also confirmed details of a reformed Sustainable Farming Incentive offer that will be “simpler, fairer, more stable, and shaped by farmers”. It will include 71 actions, down from 102, with agreements capped at £100,000 per year.   

A new round of Environmental Land Management (ELM) Capital Grants opens in July 2026 with increased funding of up to £225 million. 

Commenting on the announcements, NFU president Tom Bradshaw said: “It’s encouraging to hear the DEFRA secretary of state reaffirm her commitment to working in partnership with farmers and growers. Today’s announcement on investment in productivity demonstrates that she recognises the vital contribution our nation’s food producers make to the economy and to our national security.”  

During his speech today, Mr Bradshaw said that stopping the decline of UK food production would be good for our economy, good for our national security and good for our natural environment.  

“The reformed SFI scheme announced today appears to strike the right balance between simplifying the process and maintaining flexibility, while still retaining preferable actions for farmers and growers. It’s good to see the recognition of the uplands by maintaining actions that support the much‑loved landscapes in which they work, but we’ll need to work through the wider detail of the scheme,” Mr Bradshaw continued. 

He added that the government’s commitment is “welcomed”; however, he also called for “transparency around the farming budget”, as well as a long-term plan for food and farming. “The resilience of our food system can’t be taken for granted; underlying profitability is essential to driving the investment needed and the resilient food system that society needs,” the NFU president concluded. 

READ MORE: NFU Conference 2026: ‘We need a food strategy that sets clear ambitions’

‘Farmers are facing some of the bleakest profitability conditions in a generation’

Country Land and Business Association (CLA) president Gavin Lane said: “We are pleased DEFRA has listened to the CLA and industry to adapt the SFI scheme, increasing some payment rates and maintaining 71 actions, with a good spread to allow choice and flexibility for businesses. 

“But introducing a cap on payments has risks, limiting the ambitions of those that can do the most for nature. This is counterproductive when the government has legally binding environmental targets, and some may have no choice but to intensify production.” 

Mr Gavin highlighted that many farm businesses are currently facing “some of the bleakest profitability conditions in a generation”.  

“The Basic Payment Scheme is virtually gone, and SFI is an essential income stream to build business resilience and support food production. We will continue to work closely with DEFRA to ensure the scheme is as accessible and flexible as possible,” he concluded. 

‘Positive news’

Martin Lines, CEO of the Nature Friendly Farming Network (NFFN), said that after months of uncertainty, today’s announcement will be “extremely welcome” news for many English farmers. 

“If it wants to secure the future of British farming, the government must now commit to consistent, long-term funding for nature-friendly approaches to agriculture. 

“Moves to simplify the application process are welcome, as smaller farms have often found it difficult to secure funding compared to larger ones with more resources. Concentrating initially on farms that do not have any ELMs agreements, along with the promise of more support for upland farmers, is also positive news. 

“However, the funding being offered here still falls considerably short of what is required for the full-scale transition to nature-friendly farming required for meeting our goals on climate mitigation and nature’s restoration,” he continued. 

Mr Lines added that it is also concerning that many farms could still be left without support, as a truly climate-resilient farming system will need every farm in England to be supported to work in nature-friendly ways. 

READ MORE: Emma Reynolds announces £345m boost for farm innovations and reveals new SFI offer

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