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SFI 2026: What does it look like for Lincolnshire farmers?

Tue 24 Feb 2026

Defra has published further detail on what to expect from the Sustainable Farming Incentive (SFI) in 2026, following recent uncertainty around scheme closures and future access. This update sets out how SFI will work next year, what actions will be available, and how applications will be managed.

SFI is reopening in 2026

Defra confirms that SFI will reopen in 2026 with a redesigned offer, intended to be clearer, fairer and more controlled than previous rounds. The new approach is designed to avoid sudden closures and to spread funding more evenly across farm businesses.

Two application windows in 2026

Instead of being open all year, SFI 2026 will operate through two application windows:

  • First window (June 2026)
    Prioritised access for:
    • Smaller farms, less than 50ha
    • Farms without an existing Environmental Land Management (ELM) agreement
    • This will be open for around 2 months
  • Second window (September 2026)
    • Open to a wider group of eligible farmers
    • No fixed end date

Key points:

  • 71 SFI actions will be available down from the previous 102. Actions have either been removed due to a low uptake or a low value for money when it comes to environmental outcomes.  
  • The maximum an agreement can be worth will be capped at £100,000 per year.
  • Each farm business can have only one SFI26 agreement.
  • Agreement holders will not be able to increase the area or value of rotational actions beyond what they included in Year 1. 
  • AHW7: Enhanced overwinter stubble has been included in the 25% area limit cap.
  • Some actions have had their payment rates changed. The notable actions are:
    • CSAM3: Herbal leys from £382/ha to £224/ha
    • CAHL2: Winter bird food from £853/ha to £648/ha
    • CNUM3: Legume fallow from £593/ha to £532/ha

What do you need to do now:

Clearly the budget and timescales will be tight, therefore we advise farmers to assess the following to be prepared for when the windows open:

  • Review current land use and rotations
  • Check mapping and land parcel information is up to date
  • Consider which SFI actions may realistically fit the farm business

Please contact Abi Saunders on 07930 592030 or email [email protected] for further guidance and start preparation for these windows. Masons Rural can offer a current review of public and private environmental funding streams, to ensure you are best placed to access a new agreement that supports your current business direction.

Listen to Abi discuss the details with Steve Orchard on Episode 36 of The Farming Show