After Brexit, to replace EU subsidies, the UK government launched the Sustainable Farming Incentive (SFI), an agricultural policy that pays English farmers for environmentally sustainable land management, such as soil health, biodiversity and reduced fertiliser usage. This policy was created to help farmers manage land in ways that protect soil, enhance the environment and support nature recovery.
What is the Sustainable Farming Incentive (SFI26)?
The scheme was paused last year, but the Department for Environment, Food & Rural Affairs (Defra) has now confirmed the return of the Sustainable Farming Incentive under SFI26, reopening access to environmental funding for English farmers.
While this is welcome news, there are some changes to the scheme that farmers should be aware of. Defra has streamlined the offer to 71 actions (down from 102), focusing on those with strong environmental outcomes and value for money. This continues to support Integrated Pest Management (IPM), flower-rich margins, hedgerow management and other related measures, offering a strong opportunity for English farmers to secure public funding while strengthening productivity and resilience.
There are also adjustments to the payment rates. Several options have increased (UPL1, UPL2, UPL3, UPL8, UPL10 etc.), while some have been reduced (CSAM3, CAHL2, CNUM3 etc.).
Applications for SFI26 are split into two windows. Window 1 will be open for two months from June 2026 and is applicable for small farms (up to 50 ha agriculture land) and farms without an existing environmental land management (ELM) revenue agreement. Window 2 is open for all farms from September 2026, with no fixed end date.
Limits to be aware of under SFI26:
No SFI26 agreement can be worth more than £100,000 per year
Each farm business can hold only one SFI26 agreement
Farmers will not be able to increase the area or total value of rotational actions beyond what was declared in the first year of the agreement
Enhanced overwinter stubble (AHW7) has now been added to the list of 10 actions that are subject to a 25% area limit, designed to prevent excessive land being taken out of production.
Key structural changes for SFI26 include:
Actions that previously had a five-year duration will now move to three-year agreements under SFI26
Farmers applying to SFI26 will only be able to apply for a base action and its associated supplemental action together
Overall, SFI26 maintains environmental delivery, but with a more focused and streamlined structure that aims to provide more clarity, value for money and uptake.
How AgriSound can support your SFI26 application
The themes where payment rates have increased in SFI26 are:
Farmland Wildlife (arable/horticulture)
Integrated Pest Management (IPM)
Precision Farming.
These are also core focus areas within our biodiversity and precision pollination projects with arable and fruit growers.
Many SFI actions require you to establish habitats, reduce inputs, or adopt more targeted management. While compliance is largely action-based, forward-thinking growers should be asking bigger questions, like “Is it working?” and “Is it worth it?”.
Take farmland wildlife on arable and horticultural land as an example. Under CAHL1, you receive £739 per hectare per year for establishing a pollen and nectar flower mix. Seed costs alone can range from £225-£500 per hectare, before accounting for land preparation, establishment, labour and ongoing maintenance. The financial support is there and, with our data, we can help you to identify the best practices and locations in your farm for doing this. Our recommendations are always backed with data so that the actions you take are more worthwhile and support your farm’s productivity and resilience.
Looking ahead: precision farming
One theme that has specifically caught our attention is precision farming, a data-driven farming concept that uses technologies like GPS, satellite imagery, sensors and AI to treat fields and livestock with high precision, rather than adopting a blanket approach.
One of the action areas under SFI26 includes camera or remote sensor-guided herbicide spraying, signalling that Defra is moving towards technology-led approaches that deliver environmental benefit while supporting food production. This is now more of an impact-based payment.
At AgriSound, this is exactly what we help businesses and organisations to implement. Our Polly TM monitoring systems help you to identify optimal spraying windows that minimise disruption to pollinators, monitor pollinator recovery and resilience following field operations, and implement demand-led pollination strategies based on actual field requirements and performance.
For growers operating under IPM and precision farming actions, this adds a biological intelligence layer to agronomic decisions. We make sure the SFI actions complement, not compromise, your yield. SFI can fund the habitat where AgriSound helps you to measure the impact.
If you are planning SFI26 applications this year, now is the time to integrate monitoring into your environmental strategy, ensuring your green funding delivers both environmental value and production security. Speak to our experts today to get started.