SFI26 Window 2 Closes Following Exceptional Demand

Sustainable Farming Incentive 2026 (SFI26) Window 2 closed on 22 September, the same day it opened, after attracting exceptionally strong demand, with applications exceeding the £233 million funding available. Submitted applications will now be processed by the Rural Payments Agency (RPA), with successful applicants receiving agreement offers that must be accepted within 30 days.

Farm businesses that did not secure an agreement will need to await further information on the planned 2027 SFI offer, which the Department for Environment, Food and Rural Affairs (Defra) has said will be announced in due course.

The closure has generated significant discussion across the industry and highlighted the challenge of meeting strong demand within a budget-limited programme. The speed at which the available funding was committed underlines the continued demand for schemes that support both environmental outcomes and food production, while reinforcing the importance of future schemes providing certainty, being accessible to applicants and supporting long-term business planning.

AIC will continue engaging with the Department for Environment, Food and Rural Affairs (Defra) and the Rural Payments Agency (RPA) to ensure Members' experiences help inform the development of future schemes. Members are encouraged to share feedback on the impact of the SFI26 Window 2 closure on their businesses and farmer customers to support AIC's ongoing discussions with Government.