I am today updating the House on the Sustainable Farming Incentive (SFI), one of this Government’s Environmental Land Management Schemes (ELMs) that pay farmers to manage their land in ways that improve nature, soil health, and the environment, alongside supporting sustainable food production.

Farmers in England will soon be able to apply for the improved SFI. Building on previous announcements, the revised scheme is designed to be simpler to access and better suited to modern farm businesses.

The new SFI cuts unnecessary complexity while continuing to reward the practical actions that underpin productive, resilient farm businesses, from healthier soils and cleaner water to better habitats for bees, birds and other wildlife.

We have worked with farmers and industry to shape the new scheme, backed by £240 million for new SFI agreements and building on around £560 million already committed to farmers delivering over 39,000 live SFI agreements.

Applications are scheduled to open from 30 June 2026 for two groups: small farms and farms without an existing ELM revenue agreement. A second application window will open in September 2026, giving all farmers and land managers the opportunity to apply.

The first application window opens with up to £60 million available, followed by a second window opening in September to all farms with the remainder of the £240 million budget available.

The SFI offer in 2026 is an iterated version of the 2024 scheme. For continuity, the large Majority of scheme features will remain as they were – the look and feel of SFI should be familiar to farmers who have applied previously. However, we have made some improvements to produce a simpler and more streamlined offer.

In the previous version of SFI, a quarter of funding went to just 4% of farms. For SFI in 2026, we have introduced a new £100,000 annual agreement cap to help ensure funding reaches more farm businesses. Each farm business will be able to hold one SFI26 agreement, helping spread available funding more fairly across the sector.

The new offer also contains several actions which encourage the reduced use of synthetic fertilisers in favour of more sustainable options, cutting input costs and boosting resilience to global market shocks such as the closure of the Strait of Hormuz.

The Government has listened to farmers who said they need time to understand the offer before applications open. We published “Get ready to apply” guidance on GOV.UK on 6 May and near-final versions of the scheme guidance, terms and conditions, and actions last week on 2 June, allowing farmers to review the offer available and consider which actions may work best for their farm business. Final scheme guidance, developed with industry input, will be published next week.

Alongside the new SFI offer, the Government is making at least £50 million available for new Countryside Stewardship Higher Tier agreements this year, helping farmers and land managers deliver targeted environmental improvements where they can have the greatest impact.

The Government is also progressing the next group of Landscape Recovery projects expected to move into implementation this year, supporting large-scale action to restore rivers and habitats across England.

Together, these schemes form a comprehensive package of support for farmers, helping to boost food production, strengthen farm resilience and drive nature recovery, while underpinning the UK's long-term food security.