Sustainable Farming Incentive 2026 (SFI26) Window 2 Opens Today
The Department for Environment, Food and Rural Affairs (Defra) has confirmed that the second application window for the Sustainable Farming Incentive 2026 (SFI26) will open today (22 September 2026), providing an opportunity for eligible farmers to secure funding to manage land sustainably, benefiting the environment while supporting food production.
Eligibility
Window 2 is open to farmers who are registered with the Rural Payments Agency (RPA), have a Single Business Identifier (SBI) at the point of application, and have at least three hectares of eligible agricultural land linked to that SBI.
The window is also open to businesses with existing Environmental Land Management (ELM) revenue agreements that are due to expire by the end of February 2027. These businesses can use the new "Start an Application Early" functionality functionality to begin preparing their applications.
Budget
Defra has allocated a total budget of £233 million for Window 2. This includes approximately £3 million of funding that was not allocated during Window 1, as well as the additional £50 million recently announced by the Prime Minister as part of the Government's wider package of support for farmers facing drought conditions and increasing business costs.
Application demand
Given the finite budget available, Members working with farmer clients may wish to encourage eligible businesses that are considering an application to prepare and submit their applications promptly.
To help applicants gauge demand, Defra will publish updates through the Defra Farming Blog when approximately 25%, 50% and 75% of the Window 2 budget has been allocated. These updates will provide an indication of application demand and the rate at which available funding is being committed.
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