What's Happening?
The Department for Food, the Environment and Rural Affairs (Defra) in the UK has announced plans to reform the Sustainable Farming Incentive (SFI) in 2026. This decision follows consultations with the agriculture
sector and aims to address issues encountered in 2025. Environment Secretary Emma Reynolds revealed these plans at the Oxford Farming Conference, stating that the reforms will simplify the scheme, level the playing field, and provide stable, predictable delivery. The SFI, a key post-Brexit initiative, was designed to replace the EU’s Common Agricultural Policy, incentivizing farmers to improve soil and water quality, and enhance nature while producing food. The reforms will include two application windows in 2026, with the first in June prioritizing smaller farms and those without existing agreements, and a second round in September for a broader group.
Why It's Important?
The reform of the Sustainable Farming Incentive is significant as it addresses the challenges faced by farmers under the current scheme, which has been criticized for its abrupt application closures and budget limitations. By simplifying the process and providing predictable delivery, the reforms aim to support farmers more effectively, ensuring they can continue to contribute to environmental sustainability and food production. This is crucial for the agricultural sector, which has seen reduced incomes since 2020, prompting many farmers to diversify or leave the industry. The reforms are expected to stabilize farmer incomes and support environmental goals, which are vital for the UK's post-Brexit agricultural policy.
What's Next?
Defra plans to launch a new £30 million 'Farmer Collaboration Fund' and provide an additional £30 million for the 'Farming in Protected Landscapes' program. These initiatives aim to support farmer groups specializing in specific commodities or environments, enhancing their capacity for growth and profitability. The additional funding for the Farming in Protected Landscapes program will extend its duration by three years, supporting farmers in National Parks and National Landscapes to enhance nature recovery and improve public access. These steps are expected to bolster the agricultural sector's resilience and sustainability.
