SFI26 GUIDANCE UPDATE
The Government has released guidance for the upcoming Sustainable Farming Incentive 2026 (SFI26) release, outlining eligibility criteria and the timings. It has been confirmed:
- 71 actions will be available
- Max one application can be submitted per Single Business Identifier (SBI)
- Applications will be capped at £100,000 for both application windows for SFI26
Window 1
This will open on 18 June 2026 for those who have been invited. For all other potential applicants, the window is expected to open from 30 June 2026 for those who meet the following criteria:
- The land was registered with the Rural Payments Agency (RPA) before 1 January 2026 and had at least 3 hectares of agricultural land linked to the holding on that date.
- The holding qualifies as:
- a small farm of 50 hectares or less, or
- a farm without an existing Environmental Land Management (ELM) agreement, including:
- SFI
- Countryside Stewardship (Mid Tier or Higher Tier)
- Higher Level Stewardship
Window 2
Window 2 will be open to all farmers and land managers who meet the general SFI26 eligibility requirements and is expected for the window to be open in September 2026.
The general eligibility requirements are as follows:
- Need to be a farmer or land manager.
- Have at least 3 hectares of agricultural land liked to your SBI at the point you want to start an application.
- Have land eligible for the SFI actions you wish to select.
- Have the management control of the eligible land you will enter into your selected SFI actions for their entire duration (usually 3 years, unless you select organic conversion actions).
What should you do now?
This is an ideal time to check your eligibility and begin planning an application. You should ensure that:
- Your land is correctly linked to your RPA account
- Parcel sizes and land cover types are accurate and up to date
Early preparation is recommended. Although DEFRA have confirmed that the SFI 26 scheme will remain open until March 2027, demand is expected to be high and funding may be allocated quickly once each window opens. We therefore recommend preparing a draft application in advance, ready for submission.
Capital Grant Guidance Update
The Capital Grant window will be open in July 2026 for applications which will help fund farmers, land managers and rural businesses to deliver environmental improvements across England, including funding for fencing and hedgerow planting. There are 80 capital items available, presenting a valuable opportunity to enhance both farm infrastructure and the natural environment.
Similar to last year the capital items have been organised into the following groups:
- Boundaries, trees and orchards (£35,000 funding limit)
- Water quality (£25,000 funding limit)
- Air quality (£25,000 funding limit)
- Natural flood management (£25,000 funding limit)
- Assessments
- Improvements
Each application can include items from these groups up to the relevant limits, as well as items from the assessments or improvements group. As in previous years, only one application per SBI can be submitted annually.
How to prepare before the application window open?
Ensure that your RPA information is up to date and begin gathering the necessary supporting information, such as annotated plans to show where the capital works are to be carried out, ready to submit your application. This year places greater emphasis on providing the correct documentation when applying for Capital Grants and all supporting documentation must be submitted within 10 working days from submission.
Although the budget has increased to £225 million, demand is expected to be high, so applicants are encouraged to be well prepared ahead of the application window opening.
If you would like further advice regarding your SFI or Capital Grant application, please do not hesitate to contact us www.bcmwilsonhill.co.uk
