£233m Sustainable Farming Incentive Window Opens in England

Cultivated green fields illustrating sustainable farming and land management

England has opened the second application window for the Sustainable Farming Incentive 2026, putting £233 million behind agreements that pay farmers for land-management actions alongside food production. The announcement matters because the window is open to all eligible farms, after the first round prioritised smaller businesses and farms without an existing Environmental Land Management revenue agreement.

What has opened?

The Department for Environment, Food and Rural Affairs said the second SFI26 window opened on 22 September. Its £233 million budget includes a £50 million increase announced in August and £3 million not allocated in the first window. Applications are made through the Rural Payments service.

What can SFI26 pay for?

The scheme pays for specified actions intended to support food production, soil health, water quality and wildlife. The detailed rules list 71 actions, including cover crops, herbal leys, no-till farming, nutrient management and some precision-farming practices. Most agreements last three years and are paid quarterly. Each farm business can hold only one SFI26 agreement, including across both application windows, and the annual agreement-value ceiling is £100,000.

What happened in the first window?

Defra said around 7,000 applications were submitted in the first window and 3,100 agreements were live by 1 September. That does not guarantee the same pace in the second round, but it provides a useful indication of demand and processing activity.

Who should check the detail?

Eligibility depends on the applicant, the land and the selected action. Farms generally need at least three hectares of agricultural land. Applicants should check compatible land uses, management control, action requirements and any consent needed for protected sites before committing land. The scheme guidance, rather than the headline funding figure, determines whether a particular proposal qualifies.

What happens next?

Defra has not promised that the window will remain open indefinitely. Prospective applicants should use the current guidance and Rural Payments service, retaining records that show how chosen actions are being delivered. This article is a news summary, not application or legal advice.

Primary sources: Defra’s 22 September announcement and the SFI26 scheme rules and guidance.

Reporting basis: official information available on 22 September 2026. Illustrative image: photo by Dan Meyers on Unsplash.