A £233 million funding window has opened for English farmers, offering support to those facing low yields and rising costs while helping protect the land they work.
The second application window for the Sustainable Farming Incentive (SFI) 2026 opened on 22 September. It includes a £50 million boost announced by the Prime Minister in August, alongside £3 million left unallocated from the first window.
In return for a more reliable income, farmers will take action to improve the environment and adopt more sustainable, drought-resilient ways of farming. The scheme is part of the government’s wider Farming Roadmap for English agriculture.
7,000 applications in the first window
The first application window attracted 7,000 applications, including many from small farms. By 1 September, 3,100 new agreements were live and payments had begun reaching farmers’ bank accounts.
The government says the latest version of the scheme has been made clearer, more focused and easier for farmers and land managers to navigate. Eligible applicants must have at least three hectares of agricultural land.
The funding is intended to give farming businesses more breathing space as they deal with higher costs and unpredictable weather, while supporting food production and improvements to the countryside.
Early applications available for 21,000 farms
Farmers whose current environmental land management agreements are due to expire by the end of February 2027 can apply early for their next agreement. That could benefit around 21,000 farms, including smaller farms that did not apply during the first window.
The government says it has worked with the farming sector on this year’s offer and will continue to involve farmers as the scheme develops.
Other environmental funding remains open
Farmers can also apply through Countryside Stewardship, which remains open to new applicants. Those invited by Natural England may be able to secure 10-year agreements covering 132 land management actions and capital grant items.
A new Expression of Interest process offers another route into Countryside Stewardship. It includes opportunities involving woodland improvement, agroforestry, species-rich grassland and scheduled monument management.
Why this is good news for Britain
The funding gives English farms a steadier income while supporting food production, healthier land and farming methods better able to cope with drought and changing weather. It also brings payments into rural businesses and supports the wider rural economy.
