England's SFI26 Explained: What Eco and Organic Farmers Need to Know

In March 2025, England's Sustainable Farming Incentive shut its doors to new applicants with no warning. Farmers who had been planning applications were left waiting for more than a year. In 2026, the scheme is back as SFI26, with a smaller menu of actions, a capped budget, and a phased opening that started with small farms.

For eco and organic farmers, SFI26 matters for two reasons. It is one of the main public payments for environmental work on English farms, and it keeps dedicated organic conversion and management actions. But the budget is fixed, some actions now have area caps, and nature-friendly farming groups have raised concerns about the design.

This guide covers what happened, how the two application windows work, what organic actions pay, the arguments for and against the new design, and a checklist to get ready. It reflects the situation as of September 17, 2026, when the exact opening date for Window 2 was not yet confirmed. Always check GOV.UK and Defra guidance, and talk to an adviser, before you apply.

Key takeaways

• As of September 17, 2026, SFI26 has a total budget of £240 million and allows one agreement per business worth up to £100,000 a year.
• Window 1 opened June 30, 2026 for small farms (up to 50 ha) and farms without an existing ELM revenue agreement, with a £60 million budget.
• Window 2 was due to open in September 2026 for all eligible farmers, with no fixed closing date. Its exact opening date was not confirmed at the time of writing.
• Holders of certain older agreements (SFI23, CSMT, CSHT or HLS) ending by the end of February 2027 can apply early.
• Organic conversion and management actions continue: 11 kept and 3 dropped. Conversion on rotational land pays £298/ha.
• There are fewer actions overall and 25% area caps on some. Capital grants rise from £150 million in 2025 to £225 million in 2026.

What happened in 2025

On March 11, 2025, Defra closed SFI24 to new applications with immediate effect, saying the budget limit had been reached, according to the Country Land and Business Association (CLA). About 37,000 existing agreements were not affected. With around 80,000 BPS-applicant holdings in England, the CLA's figures suggest more than half had likely not applied.

The lesson for 2026 is that a fixed budget can run out. SFI26 also has a set budget, so preparation and timing matter.

How SFI26 opens: two windows

Sources: Defra Farming Blog (June 30, 2026), Farmers Weekly (June 2, 2026).

What the numbers mean for you

• One agreement per business. If you run several holdings as one business, plan a single application.
• Up to £100,000 a year. Smaller farms are unlikely to reach this, but larger businesses should check it against their plans.
• A budget that can run out. £240 million in total, with no fixed closing date for Window 2, suggests applying once you are ready rather than waiting. The 2025 closure showed what can happen when the money is used up.
• Older agreements ending soon. If your SFI23 or stewardship agreement ends by the end of February 2027, look at early application so you don't face a gap.

Organic actions in SFI26

Farmers Weekly reported in February 2026 that 11 organic actions were kept and 3 dropped, and that the Soil Association welcomed continued support for conversion to organic.

Dropped for low uptake: overwinter stubble on organic land, supplementary winter bird food, and under-sown cereal.

Individual action pages, such as OFC2: Organic conversion – unimproved permanent grassland, have been updated for SFI26. Read the action page for each option you plan to use. The table above gives headline rates from trade reporting; check whether each rate is paid per year and for how long before you build a budget.

Conversion versus management

Conversion payments are far higher than management payments on the same land type. On rotational land, conversion is reported at £298/ha against £132/ha for management. If you have been thinking about converting, SFI26 is a key piece of the financial picture. Talk to an organic certification body about timing alongside your SFI application.

What else changed

According to the Nature Friendly Farming Network (NFFN):

• Fewer actions. Some were removed as low value for money.
• 25% area caps now apply to some actions, which limits how much of a holding can go into them.
• Capital grants rise from £150 million in 2025 to £225 million in 2026.
• "Free choice" model. Farmers still pick actions from a menu, which NFFN criticises.

A balanced view

What supporters point to. The scheme has reopened after more than a year. Small farms and farms without an agreement got first access through Window 1. Organic conversion and management support largely continues, and capital grants are larger.

What critics point to. NFFN's review, titled "the good, the bad and the uncertain", criticises the free-choice model and notes the reduced action list. Area caps limit how far a farm can commit land to some options. And a £240 million total budget is fixed, so demand could exceed it.

What is uncertain. As of September 17, 2026: the exact Window 2 opening date, the full SFI26 action list beyond the items reported here, and whether the budget will last. The research behind this article did not include a complete action list.

Readiness checklist

• Check your land registration. Window 1 eligibility used area registered on January 1, 2026. Make sure your records are up to date for Window 2.
• List existing agreements (SFI23, CSMT, CSHT, HLS or others) and their end dates.
• Decide whether early application applies if an agreement ends by the end of February 2027.
• Map land types: rotational, improved grassland, unimproved grassland, top fruit.
• Shortlist actions and read each GOV.UK action page for rules and area caps.
• Organic farms: confirm your certification or conversion status and dates with your certification body.
• Check the 25% caps against how much land you want in each action.
• Look at capital grants alongside SFI, since that budget has grown for 2026.
• Estimate income using current rates, and check payment frequency and duration.
• Speak to an adviser before you submit.
• Watch Defra's Farming Blog and GOV.UK for the Window 2 opening announcement.

What to do next

1. Check GOV.UK and the Defra Farming Blog for the confirmed Window 2 opening date.
2. Gather your land data, agreement end dates and organic status now.
3. Draft a shortlist of actions and test it against the area caps.
4. If you are converting to organic, line up your certification body and SFI26 timing together.
5. Apply once you are ready rather than waiting, given the fixed budget.
6. Treat every figure here as a snapshot as of September 17, 2026, and confirm with Defra guidance or an adviser.

This article is general information, not legal, tax or financial advice.

Sources

• Sustainable Farming Incentive closure: questions and answers — CLA (2025)
• SFI26: Window 1 now open — Defra Farming Blog (June 30, 2026)
• SFI 2026 launch date confirmed as new details emerge — Farmers Weekly (June 2, 2026)
• Organic sector welcomes sustained support through SFI 2026 — Farmers Weekly (February 25, 2026)
• OFC2: Organic conversion – unimproved permanent grassland — GOV.UK (updated for SFI26)
• SFI26: the good, the bad and the uncertain — Nature Friendly Farming Network (2026)