SFI26: scheme rules and guidance

v4.0 August 2026

Overview of the Sustainable Farming Incentive

The Sustainable Farming Incentive (SFI) pays farmers and land managers to do sustainable land management activities that:

• protect and benefit the environment
• support food production
• improve productivity

These activities are referred to as ‘SFI actions’. You can apply for an SFI26 agreement to get paid to do SFI actions if you and your land are eligible. The agreement usually lasts 3 years, with quarterly payments.

1.1 Read the rules which apply to SFI26 agreements

Read the SFI26 agreement terms and conditions and the requirements for each SFI26 action in the ‘Find funding for land or farms’ tool. Scheme rules are in sections 4‑14 of this document.

Rules for existing SFI23 and SFI24 agreements

Follow the relevant SFI24 or SFI23 handbook for existing agreements.

1.2 Main changes for SFI26

• 71 actions (down from 102 in SFI24), including replacement GRH12.
• Minimum 3 ha agricultural land.
• Annual agreement value limit £100,000.
• One SFI26 agreement per farm business.
• Limits on adding area to rotational actions after year 1.
• No 5‑year actions; most are 3 years.
• Supplemental actions require a base action in the same application.
• SFI management payment removed.

2. When you can apply

Two windows:

• Window 1 closed 28 Aug 2026 23:59 (small farms & farms without an ELM revenue agreement).
• Window 2 opens Sep 2026 for all farmers and land managers. Applications are opened in a controlled way by the Rural Payments Agency (RPA).

2.1 Window 2 closure

No fixed closure date; updates on budget allocation published on Defra’s Farming Blog at 25%, 50%, 75% of funding.

2.2 SFI26 agreement limits

Each farm business (by SBI) may have only one SFI26 agreement and a maximum agreement value of £100,000 per agreement year. These limits apply only to SFI26 agreements.

3. Check if you’re eligible to apply

You must meet both general eligibility (3.1) and Window 2 additional requirements (3.3).

3.1 General eligibility

• Farmer or land manager.
• Land eligible for chosen SFI actions (see section 5).
• Management control of the land for the action’s duration (usually 3 years).
• At least 3 ha of agricultural land linked to your SBI.
• Not on common land.

3.2 Window 1 eligibility

No longer relevant (Window 1 closed).

3.3 Window 2 additional requirement

Your farm business must be registered with the RPA (have an SBI) at application start.

3.4 Definition of agricultural land

Land registered by the RPA with arable land, permanent grassland, or permanent crops.

3.5 Lump Sum Exit Scheme payment

• Individuals: ineligible unless lump sum repaid.
• Partnerships/LLCs: eligible if remaining partners/shareholders did not receive the payment.

3.6 Delinked payments

Recipients are eligible; avoids double funding.

3.7 Public bodies

Eligible if not paid for activities already required by statutory duty or funded elsewhere (to avoid double funding). See list of eligible public bodies.

3.8 ELM revenue agreement ending soon (Window 2 only)

If your ELM revenue agreement ends on or before 28 Feb 2027, you can use the SAE (start‑application‑early) functionality to apply for SFI26 before the agreement ends, with the SFI26 agreement starting after the ELM agreement ends (usually the first day of the following month). See Table 1 for eligible schemes.

Table 1: Eligible ELM revenue schemes and agreement end dates

3.8.2 Application process

Same as standard Window 2 process, but SAE lets you apply on land not normally available.

3.8.3 Agreement start dates

RPA will offer SFI26 agreements before the ELM agreement ends when possible; start date is usually the first day of the month after the ELM agreement ends, to avoid double funding.

4. About SFI actions

The SFI26 offer includes 71 actions (70 from SFI24 plus replacement GRH12). Actions can be combined freely.

4.1 Finding the actions

All actions are in the ‘Find funding for land or farms’ tool; search for “SFI26”. A print version is available. Action codes unchanged from SFI24. See Annex A for codes, titles, payment rates.

4.2 Content of each action

Each action includes:

• action code and duration (mostly 3 years)
• annual payment rate
• aim and outcomes
• eligible land types/landscape features
• how, when, and what to do
• required evidence
• related actions/options on same parcel Voluntary advice is also provided but not mandatory.

4.3 Rotational SFI actions

You may move location or change area in years 2‑3, subject to a maximum area limit set in year 1. You must submit a rotational actions declaration at the end of years 1‑2.

4.4 Static SFI actions

Must be carried out on the same location and area each year.

4.5 Limited area SFI actions

Limited to ≤25 % of farm agricultural area. The limit counts existing limited‑area actions from SFI23, SFI24, and CSHT (from 2025). See Table 2.

Table 2: Limited area actions

4.6 Supplemental SFI actions

Only available when a supporting base action is selected in the same application.

4.7 Organic‑specific SFI actions

For organic conversion (land “in conversion” with a DEFRA‑licensed OCB) and organic land management (land “fully organic” with an OCB). Find them in the same tool; organic land can also be used in other eligible SFI actions.