SFI26 Budget & Scheme Updates

Soon-to-Expire ELM Revenue Agreements

Some farmers have land in existing ELM revenue agreements due to expire, including SFI23, Countryside Stewardship Mid Tier (CSMT), Legacy CS Higher Tier (CSHT) and Environmental Stewardship Higher Level Stewardship (HLS). Typically, these farmers cannot access the full SFI26 offer until their current agreements end, due to incompatibility with their existing agreement and potential double funding.

In response to feedback, Defra intends to help farmers with soon-to-expire ELM revenue agreements to access the full SFI26 offer. Functionality on the SFI26 application service from the start of Window 2 in September 2026 will hopefully allow farmers to apply for land covered by these agreements before their existing ELM agreements expire. 

At present, Defra has not defined what will be considered ‘soon-to-expire’ in terms of agreement end dates. It is therefore unclear which agreements will qualify for this flexibility, and there is no guarantee as to how this will be applied in practice. However, it is expected that further clarification will be provided before Window 1 opens.

Some small farms which are eligible for Window 1 also have land in soon-to-expire agreements. It may be possible for them to apply for Window 2 instead and benefit from the flexibility intended by the new functionality.

Budget Update

Defra has confirmed a total budget of £240 million for new SFI26 agreements, in addition to the approx. £560 million already committed to 39,000 existing agreements.

Of this, £60 million is allocated to Window 1, opening from 30^th June 2026 for small farms and those without an existing ELM revenue agreement. Any unallocated funding will roll into Window 2, due to open in September 2026 for all farmers and land managers.

Defra will provide updates as 25%, 50% and 75% of the Window 1 budget is committed to improve transparency and avoid sudden closures. The same approach will apply to Window 2.

Early Preparation

The final versions of the SFI26 scheme information will be published next week. A small number of eligible Window 1 applicants will then be invited to apply from around 18 June to test the process. As mentioned in a previous article, the key to a successful application is early preparation, it is essential that:

• Eligibility is checked

• Land, contact details and permissions are up to date

• Digital maps accurately reflect the land parcels to be included in an application

• Discussions on scheme options are underway to enable prompt submission

Countryside Stewardship Higher Tier

At least £50 million will be available for new Countryside Stewardship Higher Tier agreements, supporting targeted environmental improvements where they can have the greatest impact.

How we Can Help

To discuss eligibility or if you are unsure about the details of a potential application, please contact your local advisor or one of the team below as soon as possible:

Megan Rogers (Kettering) on 07747 625716

Maisie Evans (Shrewsbury) on 07825 082540

Tom Harris (Towcester) on 07747 567910

Vicky Price (Hereford) on 07384 546941