The UK government has reaffirmed its commitment to sustainable farming and environmental stewardship, allocating £5 billion over the next two years to drive positive change. With an ever-growing number of farmers engaging in Environmental Land Management schemes, the Sustainable Farming Incentive (SFI) has become a cornerstone of sustainable food production and nature recovery.
With more than 37,000 multi-year agreements currently active, the SFI is delivering measurable benefits for farmers, wildlife, and the environment—all while putting money back into the pockets of hardworking land managers. However, as the scheme reaches record participation, new SFI applications will no longer be accepted from today.
So, what does this mean for farmers? Here’s everything you need to know.
What Happens to Existing SFI Agreements?
For those already enrolled, it’s business as usual. All existing SFI agreements will continue as planned, ensuring that farmers receive every penny they are entitled to. Additionally, any eligible applications submitted before the cut-off will still be processed.
Here’s a breakdown of what you can expect:
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If you have an SFI agreement: Nothing changes. Payments will continue as per your agreement, many lasting until 2028.
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If your agreement expires in October 2026: You may be eligible for the revised SFI scheme after your current agreement ends.
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If you’ve been offered an agreement but haven’t accepted: You have 10 working days from the offer date to accept, or your agreement may be withdrawn.
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If you submitted an application but haven’t received an offer: Your application will still be processed, provided it is eligible.
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If you started but didn’t submit an application before the deadline: Unfortunately, you will no longer be able to submit it, except in specific cases (e.g., technical faults or assisted digital applications).
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If you have or had an SFI Pilot agreement: You will still be eligible to apply for future schemes when your pilot ends.
The Impact of SFI So Far
Since its launch in 2022, the SFI has helped farmers adopt more sustainable practices while enhancing biodiversity and protecting vital ecosystems. The scheme’s impact includes:
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800,000 hectares of arable land farmed without insecticides, protecting pollinators and improving soil health.
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280,000 hectares of low-input grassland managed more sustainably, safeguarding biodiversity and water quality.
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75,000 km of hedgerows actively maintained, creating habitats for wildlife, boosting carbon storage, and reinforcing natural flood defences.
With thousands of agreements remaining active, these benefits will continue shaping a greener future for UK agriculture.
What’s Next? A Reformed SFI for 2025
The government has indicated that a revised and more targeted SFI scheme will launch in summer 2025, following the Spending Review. This evolved program will focus on:
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Maximizing environmental impact in areas with the greatest potential for nature recovery.
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Ensuring fair funding allocation to farmers who may struggle to access alternative sources of income.
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Strengthening supply chains and market reforms to ensure farmers receive fair compensation for sustainable food production.
Additionally, 14 proposed endorsed SFI actions (including species-rich grassland management) will now be incorporated into the redesigned scheme, making it more effective and impactful.
Final Thoughts
The SFI has already played a transformative role in UK farming, delivering financial security while promoting sustainable land management. Though new applications are now closed, current agreements remain in place, and a refreshed, more targeted scheme is on the horizon.
At Finn’s, we remain committed to keeping our farming community informed. Stay tuned for more updates on the reformed SFI scheme, and don’t hesitate to reach out for expert guidance on your farming agreements and environmental commitments.
For any questions or support, contact us today!
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Source: Gov.uk