On 2nd June, Defra announced the start of the new SFI26 scheme, with the first funding window set to open on 30th June.
Known as ‘Window 1,’ this new funding opportunity is eligible for farm businesses which have had an Single Business Identifier with land linked to it on 1st January 2026. For Window 2 which opens in September, this requirement drops away so that farm businesses only need to be registered at the point an application is started. As expected, there are some ‘limited area’ actions that, because they take land out of production, can only be carried out on a maximum 25 per cent of the farmed area.
In addition to this, in applying for an SFI26 agreement, the area limit will be applied across all farmers’ SFI agreements so that new applications will not be able to enter more land into limited area actions if the 25 per cent limit has already been reached under an SFI23 or SFI24 agreement.
Katie Hilton, Director at Cheffins gives her guidance on this first window below:
"It will be disappointing for arable farmers that the window doesn’t open until 30th June, as they will already be gearing up for harvest. However, the fact that this new guidance remains largely as before, means that those who have pre-planned their applications can be ready to apply at the earliest opportunity. There are, however, some changes to SFI action rules to look out for.
SOH1 no-till farming
It is positive that the SOH1 no-till farming action can now be used for the sowing of all seeds and not just crops. This means that it streamlines with the farm rotation more easily where, for example, a CNUM3 Legume fallow is being used as a break. Previously this could cause an issue in the farm rotation due to SOH1 being a ‘static’ action but incompatible with CNUM3.
CAHL2 Winter bird food
The winter bird food payment has been reduced to £648 per hectare, down from the previous rate of £853 per hectare. It is disappointing that Defra did not see fit to hold the payments at the higher rate, and this will certainly have some impact on those applying for this funding. The lower rate will certainly deter a number of farmers and landowners taking up this valuable action for farmland birds.
AHW9 Unharvested cereal headland
A new restriction to look out for is with the AHW9 Unharvested cereal headland which now has wording to explicitly restrict it to headlands. This higher-paying action, at £1,072 per hectare, had begun to take off as a more widely used tool to increase payment levels and perhaps be utilised as an alternative game cover, under sown with additions such as mustard and fodder radish to add interest.
Now the guidance is published in full and there is an application date to aim for, farm businesses should make sure they are well-prepared with a comprehensive SFI26 scheme that has considered all options in full. Now will be a pertinent time for farm businesses to plan for next year, particularly after the Middle East energy shock, and think carefully about how SFI actions can, for example, replace break crops that may be deemed unprofitable for 2027."
For full guidance on SFI and all other grant funding enquiries, please contact Katie Hilton on [email protected]