Sustainable Farming Incentive (SFI)

With recent changes it can be challenging for farmers, land managers and woodland owners to keep up to date with the latest payment streams from the Department for Environment, Food & Rural Affairs (DEFRA) and the Rural Payments Agency (RPA). That’s why Masons Rural team can do it for you.

Environmental Land Management Schemes (ELMS)

ELMS have been designed to promote sustainable farming practices, protect biodiversity, improve soil health, reduce pollution, and enhance the natural environment. These schemes offer financial incentives to landowners and farmers in exchange for actions that benefit the environment. They are part of the UK’s broader efforts to meet environmental goals, such as reducing greenhouse gas emissions, improving water quality, and conserving wildlife habitats.

There are 3 new schemes that will reward environmental land management:

• Sustainable Farming Incentive (SFI)
• Local Nature Recovery
• Landscape Recovery

Sustainable Farming Incentive (SFI)

The Sustainable Farming Incentive (SFI) continues to be one of the main environmental funding opportunities available to farmers.

The latest SFI26 offer includes a range of actions designed to improve soil health, water quality, biodiversity and farm resilience, whilst supporting sustainable food production. The flexibility of the scheme allows farmers to choose actions that fit alongside their existing farming system and future plans.

Whilst SFI is unlikely to fully replace previous Basic Payment Scheme income, it can provide valuable support for businesses looking to manage risk, improve resilience and generate additional income from environmental land management.

Applications for SFI26 are being introduced through phased application windows, with the first opening in June 2026 for smaller farms and those without an existing Environmental Land Management (ELM) revenue agreement. A wider application window is expected later in the year.

With changes to actions, payment rates and eligibility requirements, it is important to consider which opportunities are the right fit for your business. Abi Saunders and the Masons Rural team are working with clients to review available options, assess how they fit within existing farming systems and prepare for future application windows.

For help and advice contact Masons Rural on 01507 350500 Option 3.  

Local Nature Recovery (LNR)

These are aimed at restoring and enhancing nature on farms, LNR supports actions like habitat creation, species conservation, and improved water quality. This scheme will be designed to meet local environmental priorities. The aim is to encourage collaboration between farmers, helping them work together to improve their local environment.

The Lincolnshire Draft Local Nature Strategy is currently out for consultation. This will help guide land management decisions, support access to funding, and encourage people to work together across the landscape. 

Landscape Recovery

This scheme is aimed at large-scale landscape restoration projects such as:

• restoring wilder landscapes in places where appropriate
• large-scale tree planting
• peatland and saltmarsh restoration

Animal Health and Welfare Pathway

Offers farmers funding for an annual visit from a vet of their choice to consider the health and welfare of their animals (this includes carrying out diagnostic testing, reviewing biosecurity and the use of medicines, and provide bespoke advice on actions and available support to improve the health and welfare of their animals).

This is currently open to applications. 

Farming Equipment and Technology Fund

This fund goes through open periods. It is a grant which is designed to help you:

• improve productivity
• manage slurry
• improve animal health and welfare

Farming in Protected Landscapes (FiPL)

Funding which supports farmers and land managers in a National Landscape (previously know as an Area of Outstanding Natural Beauty (AONB) or national parks in England which includes the Lincolnshire Wolds National Landscape. FiPL funding will support planning projects under the themes of Climate, Nature, People and Place and that:

• support nature recovery
• mitigate the impacts of climate change
• provide opportunities for people to discover nature
• protect or improve the quality and character of the landscape

This programme was recently extended for 3 years to enable farmers and land managers in the Lincolnshire Wolds to bring forward schemes that by their very nature take more than 12 months to complete.

Real all about the successful delivery of over 90 projects in the Lincolnshiew Wolds in the last 5 years and opportunities for funding now in our recent blog on FiPL.

To find out more about how we can help with Sustainable Farm Incentives just email or call our Rural Team on 01507 350500 Option 3