As we move into the summer period, several key funding opportunities and scheme openings are approaching for farm businesses. With demand expected to be high across a number of schemes, early planning is essential to ensure you are well placed to take advantage of available funding.
Sustainable Farming Incentive (SFI) 2026
DEFRA has now announced the first application date for the new Sustainable Farming Incentive (SFI 26) as well as details for the SFI 26 budget.
There will be two application windows:
- Window 1 will open from 30th June 2026 and will be open to two groups; small farms between 3 and 50 hectares and businesses that do not currently have an Environmental Land Management revenue agreement. There will also be a small number of farmers eligible for this window invited from around 18th June to test the application service before full rollout.
- Window 2 will open in September 2026 for all farmers and land managers.
DEFRA have confirmed a budget of £60 million has been allocated to Window 1, and £180 million available for Window 2 (any unallocated Window 1 funds will also be rolled over to Window 2). This is a total annual budget of £240 million, which is relevant for new SFI 26 agreements in application Windows 1 and 2 in this financial year (up to March 2027).
SFI 26 includes a few changes compared to previous versions of the scheme, including lower payment rates for Winter Bird Food, Legume Fallow & Herbal Leys, a reduced number of available actions, an annual payment cap per agreement of £100,000 and a limit of one agreement per farm business.
Rising fertiliser prices, influenced by ongoing uncertainty in global markets and the Gulf region continue to increase input costs for farmers. SFI actions such as cover crops, legume fallow, legumes on grassland, herbal leys, companion cropping and variable rate application can help reduce reliance on inorganic fertilisers and improve nutrient efficiency.
Given the anticipated demand for places, limited budget and revised structure of the scheme, farmers should begin considering potential applications well in advance of their application window opening.
Capital Grants Opening July 2026
DEFRA has confirmed that the Capital Grants scheme will reopen in July 2026, backed by an increased funding allocation of £225 million.
The scheme provides funding for a wide range of capital items designed to improve environmental outcomes, farm infrastructure and resource efficiency.
Applicants should be aware that spending caps will apply to certain categories:
- Up to £25,000 for the air quality, natural flood management and water quality groups.
- Up to £35,000 for the boundaries, trees and orchards group.
As in previous rounds, funding is expected to be highly competitive. We strongly advise farmers considering applying to review potential items and discuss requirements prior to the application window opening. Where relevant, approval from a Catchment Sensitive Farming Officer may be required before an application can be submitted.
If there are any items of interest, please contact us as soon as possible so that preparations can begin ahead of the scheme opening.
Agricultural Show Season
We are looking forward to attending a number of agricultural shows across the region this summer and would be delighted to see many clients, friends and industry contacts throughout the season.
You will find the Lister Haigh team with a stand at:
- Great Yorkshire Show
- Aldborough & Boroughbridge Show
- Ryedale Show
- Nidderdale Show
Please feel free to stop by for a drink and a chat about any grant schemes, planning matters or general rural business enquiries.
In addition to these events, members of the team will be attending several other local agricultural shows throughout the summer. If you spot us walking around, please come and say hello, we are always pleased to catch up and hear how things are going on farm.
Get in Touch
If you would like to discuss rural funding opportunities, valuations, land sales or any other rural property and business matters, please do not hesitate to contact the team. Early preparation is the best way to maximise opportunities and ensure applications are ready when schemes open.
01423 860322
