Background to the Sustainable Farming Incentive

The Sustainable Farming Incentive is a government scheme that rewards environmental land management. Find out more about the policy and check back for updates as the scheme develops.

The area-based Basic Payment Scheme (BPS) in England is being phased out. By 2028, farmers will no longer receive BPS payments. Instead farmers will have access to new payment systems based on environmental outcomes and public goods.

In England the Sustainable Farming Incentive (SFI) is underway.

1. Maintaining and enhancing the natural environment
2. Reducing carbon emissions
3. Improving the health and welfare of farmed animals

A pilot version of this scheme began towards the end of 2021, followed by a wider rollout in 2022 which had three standards on offer. SFI 2023 had 23 individual actions available for farmers.

The SFI offer was expanded in 2024 to over 100 actions for farmers to choose from. Then in March 2025, SFI applications were paused.

Details of the latest iteration of the scheme, SFI26, have been announced.

There will be two application windows for SFI26:

• June 2026 – applications open for a farm with up to 50 ha of agricultural land and farms without an existing environmental land management (ELM) revenue agreement
• September 2026 – applications open for all farms

Each farm can only have one SFI26 agreement, which cannot be worth more than £100,000 each year.

There are 71 actions available in SFI26.

Further details, including payment rates, are available in Defra's farming blog

The 'find funding for land or farms' tool provides information on the various actions available for different types of agricultural land as well as available grants.

For other information including eligibility and agreement details, visit the SFI guidance page.

Offer initially available to farmers in England who are:

• Keepers of cattle, pigs and sheep with more than 50 pigs, 20 sheep or 10 cattle
• Currently eligible for BPS

 Defra will fund a yearly visit from a vet, or vet-led team. Other details include:

• Time-limited offer for three years
• Includes diagnostic testing for priority diseases, bespoke advice on health, welfare biosecurity and responsible use of medicines
• Farmer and vet to agree a series of recommended actions that can be monitored on a yearly basis
• Testing will focus on identifying priority disease and conditions in cattle, pigs and sheep:
  • Cattle: Bovine Viral Diarrhoea (BVD)
  • Pigs: Porcine Reproductive and Respiratory Syndrome virus (PRRS)
  • Sheep: Parasitic resistance to anthelmintic treatments
• Payment rates per review:
  • Pigs - £684
  • Sheep -£436
  • Beef cattle - £522
  • Dairy cattle - £372