Sustainable Farming Incentive set to reopen – why preparation now matters
By Andrew Heskin, Consultant and ARA specialist
With Basic Payment Scheme support continuing to reduce, many farming businesses are reassessing where future income will come from.
Against that backdrop, the Government’s Sustainable Farming Incentive (SFI), due to reopen in June 2026, is becoming an increasingly important part of the conversation.
Rather than being simply another environmental scheme, SFI offers farms the opportunity to introduce a degree of predictability into their income at a time when volatility has become the norm.
However, experience from previous rounds suggests that those who wait until applications open may find their options limited.
Understanding the role of Sustainable Farming Incentive
SFI forms part of the Environmental Land Management programme and is designed to reward farmers for carrying out land management practices that support long-term sustainability.
In practical terms, this can include actions linked to soils, grassland, hedgerows and wider land stewardship.
Crucially, SFI has been designed to sit alongside commercial farming, rather than replace it. Compared to older schemes, it is intended to be:
- More flexible
- Easier to access
- Better aligned with day-to-day farming activity
Demand in earlier rounds was strong, with applications closing once funding limits were reached.
What to expect in 2026
The Government has confirmed that SFI will reopen using a structured application window, rather than remaining open until budgets are exhausted.
The first window, expected in June 2026, is anticipated to prioritise:
- Smaller farming businesses
- Farms not currently participating in SFI or similar schemes
A broader window is expected later in the year, but the key takeaway is that preparation will matter.
Farms that delay decisions until applications open may find fewer choices available.
Why the SFI is taking on greater importance
For many farms, the question is no longer whether BPS will end, but how the resulting income gap will be managed.
There is no single replacement for BPS. Instead, businesses are increasingly relying on a combination of:
- environmental schemes
- diversification activity
- renewable energy income
- changes to farming structures or agreements
While SFI will not suit every holding or enterprise, it can provide a relatively predictable income stream for actions many farms are already undertaking.
As BPS continues to reduce, SFI is becoming a more central part of the overall business strategy rather than a peripheral add-on.
Time to act
Direct support payments are being phased out and future funding is increasingly linked to environmental outcomes and wider public benefit.
Whether or not farmers agree with that shift, adapting to it is now part of running a resilient business.
SFI is not a complete answer to the loss of BPS, but for many farms it is becoming an important component of the post-BPS income mix.
If you would like to discuss how SFI could fit into your wider farming strategy or need support with planning or applications, the Moore Thompson ARA team would be happy to help.