DEFRA annouces next stage of SFI
February 2026
Today DEFRA has announced the next stage of SFI.
The CLA have provided a summary of the key points following DEFRA Secretary Emma Reynolds' speech at the NFU conference today:
A huge amount of lobbying has gone into securing these agreements, which broadly speaking we have welcomed. Keep an eye out for future comms from us giving further analysis. But for ease you can find a summary below:
• £345 million total funding package to boost farm productivity, innovation, and infrastructure.
• Up to £225 million in grants to help farm businesses grow and improve long-term resilience.
• SFI to include 71 actions (reduced from 102), with agreements capped at £100,000 per year to ensure fairer distribution of funding.
• First SFI application window opens in June for small farms (3–50 hectares) and those without a live Environmental Land Management agreement.
• Second SFI application window opens to all farmers in September.
• £70 million allocated to the Farming Innovation Programme to turn research into practical tools and support new crop development.
• Builds on previous £21.5 million awarded to 15 innovation projects focused on emissions reduction, resilience, and productivity.
• £50 million for the Farming Equipment and Technology Fund to support investment in productivity, animal health and welfare, slurry management, and efficiency-enhancing technology.
• Funding contributes to the government’s commitment to invest at least £200 million in agricultural innovation by 2030.
• New round of Environmental Land Management Capital Grants to open in July 2026 with up to £225 million available for infrastructure supporting environmental targets and resilience.
• Capital grants to support hedgerow planting, slurry storage, natural flood management, livestock equipment, and water quality improvements.
• Consultation to be launched on making Animal Health and Welfare Reviews (vet visits) mandatory for cattle, sheep, and pig farmers in England.
• New summer grant to fund poultry biosecurity reviews through on-farm vet visits to reduce avian influenza risk.