Following the latest briefing from the Department for Environment, Food & Rural Affairs (Defra), farmers should be preparing for this year’s key grant schemes. The first opens mid March, so it’s important to take action now.
Sustainable Farming Incentive (SFI26)
The Sustainable Farming Incentive will reopen in June 2026 with a refreshed offer known as SFI26.
Key changes:
- Simpler, more focused scheme with fewer actions
- Lower-uptake options removed to prioritise high-impact environmental and productivity measures
- £100,000 annual payment cap per business
- Phased access, with smaller farms and new entrants prioritised initially
- Payment rates rebalanced to better support both food production and environmental outcomesTiming:
- First application window expected June 2026 for those 3 – 50 Ha without any current agreement
- Second window for everybody to open in September
Action now: Start reviewing eligible land, consider which actions align with your system, and prepare for when full guidance and payment rates are published.
Farming Equipment & Technology Fund (FETF)
FETF returns for a final round in its current format, opening 17 March 2026 for a 6-week window (closing 27 April).
- £50 million budget
- Competitive grants for specified equipment
- Focus on productivity, slurry management, and animal health & welfare
- Contractors can apply
- Forestry items included
Defra has indicated the fund will be redesigned from 2027.
Capital Grants
The Capital Grants programme will reopen in July 2026, with an increased budget of £225 million.
Funding supports:
- Hedgerows and boundary features
- Water and air quality measures
- Tree planting and other environmental capital works
These are standalone, one-off payments and the window is expected to be short. Advance preparation is essential — ensure required approvals are secured and check land parcels are clear of outstanding or incompatible capital claims.
What these grant schemes mean for your business
With SFI26 (June), FETF (March–April), and Capital Grants (July) running close together, careful planning is critical.
Farmers should:
- Review scheme compatibility
- Align applications with long-term business goals
- Prepare early to strengthen applications
- Ensure full understanding of eligibility and compliance requirements