Farmers in England with Higher Level Stewardship (HLS), Countryside Stewardship or other Environmental Land Management (ELM) agreements nearing expiry are being advised to check their contract dates before applying for the Sustainable Farming Incentive 2026. Defra expects SFI26 Window 2 to open in September 2026, with new functionality intended to help eligible farms move into the scheme after an existing environmental agreement ends.
The timing matters because land already covered by an ELM revenue agreement may not be available for overlapping SFI actions. For some HLS agreement holders, waiting for Window 2 could allow more eligible land to be included.
What will change in SFI26 Window 2?
Defra says the planned process will allow certain SFI26 agreements to begin after a soon-to-expire environmental agreement has finished. This could make the transition from older stewardship schemes easier while preventing overlapping payments.
Farmers with HLS, Countryside Stewardship or an existing SFI agreement should check whether important land parcels remain committed before choosing an application window.
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Who can apply?
Window 2 is expected to open in September 2026 to eligible farmers and land managers registered with the Rural Payments Agency (RPA) who hold a valid Single Business Identifier (SBI).
Applicants must have at least 3 hectares of eligible agricultural land linked to their SBI when they apply.
Why agreement expiry dates matter
Farmers whose agreements end by February 2027 may benefit from waiting if key parcels remain tied to an existing scheme. Applying earlier could provide quicker access to SFI26, but it may reduce the amount of land available for the new agreement.
Each business can hold only one SFI26 agreement per SBI, so an early application should not be submitted without checking whether additional land may become available later.
SFI26 budget and payment limit
SFI26 has a total budget of ÂŁ240 million for new agreements across Window 1 and Window 2 during the financial year ending in March 2027.
Up to ÂŁ60 million has been allocated to Window 1, with unused funding expected to become available in Window 2. The maximum value of an agreement is ÂŁ100,000 per agreement year.
Defra has not guaranteed a fixed closing date for Window 1 because demand and the available allocation will determine how long it remains open.
What farmers should check before applying
Farm businesses should confirm the expiry date of every environmental agreement, identify the land parcels still covered and check whether their preferred SFI actions are compatible with existing commitments.
They should then compare the benefit of applying earlier with the option of waiting until Window 2, when more land may become available.
Further details are available in this SFI26 Window 2 eligibility and HLS agreement update.
Check the official guidance
Before making a final decision, farmers should review the official SFI26 scheme rules and guidance on GOV.UK.
For farms moving out of HLS or another stewardship scheme, comparing the existing agreement end date with the proposed SFI26 start date can help prevent delays or an incomplete application.
Farmers in Engla
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