New round of SFI funding on the horizon

The UK government has reworked the Sustainable Farming Incentive (SFI) to launch a simpler and fairer scheme in 2026, with 71 core actions reduced from 102, a £100,000 annual cap per agreement, and agreements running three years. Applications will open in two windows (June for smaller farms and those without existing ELM agreements; then September for all eligible farms). Fundamental options include soil health and nutrient management, low-input grassland, agroforestry integration, wildlife-friendly margins, precision nutrient application and other environmental practices supporting biodiversity, water quality and sustainable production.

 Alongside actions, farmers can apply for capital items through the Capital Grants and related schemes to help deliver SFI actions (separate one-off payments). Examples include planting and protecting trees (e.g., AF1: agroforestry woodland trees and AF2: agroforestry fruit trees), species diversity bonus (AF3), various tree guards (TE6, TE7, TE8) to protect young trees, and other infrastructure like fencing to support environmental practices. There are also planning capital plans (e.g., agroforestry plans, woodland or habitat mapping) to support longer-term works. 

If you think your land or business could benefit from these grants or have existing grants to fulfil, RT Farming can help. Do get in touch to discuss your requirements