The key message from DEFRA is that SFI26 will be simplified and more focused.
The number of actions has reduced from 102 to 71, removing 31 actions, primarily those with low uptake or limited environmental impact alongside food production. Despite this reduction, there remains sufficient flexibility to tailor agreements to individual farm businesses.
Removed Options
DEFRA has refocused the scheme on actions delivering clearer environmental outcomes and better value for public money. Several assessment-based and lower uptake actions will no longer attract payment, including:
- Hedgerow condition assessment (CHRW1)
- Integrated Pest Management planning (CIPM1)
- Moorland assessment (CMOR1)
- Nutrient management review (CNUM1)
- Assess soil, test soil organic matter and produce a soil management plan (CSAM1)
While planning and baseline assessments remain essential for compliance and sound farm management, the emphasis has shifted away from funding paperwork towards practical, on-the-ground delivery.
Supplementary and add-on payments have also been reduced, including cattle grazing, native breed and moorland shepherding supplements, nil fertiliser supplements, and certain organic actions such as overwinter stubble and undersown cereals. This limits the ability to stack smaller payments, particularly for livestock, upland and organic businesses.
There are also fewer standalone options for buffer strips and in-field features, particularly relating to ponds, trees, watercourse management and nutrient reduction.
Financial Structure and Scheme Controls
Alongside simplification, DEFRA has introduced tighter financial controls:
- A maximum agreement value of £100,000 per year
- One SFI26 agreement per farm business
- Adjustments to some payment rates, both increases and reductions
Enhanced Overwinter Stubble (AHW7) will now sit within an existing 25% area cap. This cap applies to a specified group of actions which, individually or combined, cannot exceed 25% of the farm’s total agricultural area.
For rotational actions, the area declared in Year 1 sets the ceiling. Actions can be moved between fields to suit crop rotations, but the overall area or agreement value cannot increase after Year 1.
Application Windows
To be eligible for SFI26, farmers should have at least 3 hectares of agricultural land and SFI26 will open in two phases:
Window 1 – June 2026
Opening in June and expected to remain open for approximately two months, although it may close earlier if demand is high. This window is aimed at:
- Small farms (up to 50 hectares), and
- Farms without an existing ELM revenue agreement.
Window 2 – September 2026
Opens in September 2026 and is open to all farms. No fixed closing date has been set, as this will depend on demand. Timing will therefore be important, particularly for those eligible for Window 1.
Agreement Length
Actions previously requiring five-year commitments will move to three-year agreements under SFI26. This is intended to:
- Reduce long-term rigidity
- Improve accessibility for tenant farmers
- Provide greater flexibility in a changing policy and market environment
To make sure you’re fully prepared, we would recommend booking a meeting with your local advisor as soon as possible. Getting a clear plan in place now, means the application will be ready to submit as soon as the appropriate window opens.
To discuss, please contact, Sarah Meredith (Hereford) on 07799 902948.