Understanding the Sustainable Farming Incentive and It's Importance for Your Farming Business
- Richard Fitzpatrick
- Oct 1
- 3 min read
Updated: Oct 2
In this blog, Richard Fitzpatrick of Encompass Ag talks about what the Sustainable Farming Incentive (SFI) is and why it is important to stay up to date with new developments.
What is the Sustainable Farming Incentive (SFI)?
And why it's still important for your farming business – even now
The Sustainable Farming Incentive (SFI) is part of the UK government’s post-Brexit agricultural support system, rewarding farmers in England for managing their land in environmentally sustainable ways.
While the SFI 2024 application window has now closed, its aims — and the wider shift in agricultural policy — remain very much in motion.
More schemes are running, more will follow, and farmers who stay engaged now will be best placed to benefit in the years ahead.
Why SFI is important?
The SFI is part of Defra’s Environmental Land Management (ELM) programme, which is gradually replacing the old Basic Payment Scheme (BPS). It’s designed to support farmers in adopting practices that:
Improve soil health and fertility
Protect water and air quality
Enhance wildlife and biodiversity
Reduce carbon emissions
Increase the resilience of farms to climate extremes
From cover cropping and low-input grassland management to hedge planting and nutrient planning, the SFI pays you for making positive, practical changes.
What’s happening now?
As of late 2024, the SFI application window is closed, and no new agreements are currently being accepted.
This has understandably caused some frustration in the farming community, particularly for those who were planning to apply this year or expand existing agreements.
What next?
Defra has said new schemes and updates are expected from 2026, with more long-term options and refinements likely to be introduced.
In the meantime, other support schemes are still open — including Countryside Stewardship, Lump Sum Exit Scheme, and capital grants for equipment or infrastructure.
Why stay engaged with SFI and other schemes?
Even with the pause on SFI applications, there are several good reasons to keep sustainability schemes on your radar:
Future income
With BPS payments being phased out on a much faster scale than initially announced and phased out completely by 2027, environmental land management schemes remain a key route for replacing lost income — whether that’s through SFI, Countryside Stewardship, or future schemes.
Farm resilience
Many of the actions supported by these schemes — such as improving soil health, reducing fertiliser use, or planting buffer strips — help your farm perform better under pressure (drought, flooding, rising input costs).
You’re building eligibility now
By managing your land sustainably now, you're not only doing the right thing — you're also making it easier to meet the requirements of future schemes when they open.
Advice and support is still available
Encompass Ag Ltd is here and is already helping farmers assess options, manage existing agreements, and prepare for future opportunities.
What should you do now?
Review what you’re already doing
You might already be carrying out actions that would qualify under environmental schemes (e.g. reduced tillage, low-input grazing, hedgerow management). Encompass Ag can help you with a one to one session to understand your business and offer indepentant advice on the best soltutions.
Explore current live schemes
Encompass Ag are setup to help you understand currently available schemes and can offer advice on which may be most suitable for you and which may help with future changes.
Stay informed
As we head towards 2026, staying up to date with scheme developments will give you the best chance to apply early and shape your farm’s future strategy.
Want to join our mailing list to stay up to date? Let us know here.
Contact Encompass Ag Ltd f you’re unsure where to turn. We can help you with many aspects of navigating SFI and many more schemes.
Summary
Yes, the SFI application window may be closed for now — but that doesn’t mean the door to sustainable farming support is shut.
Agriculture is changing, and those who stay informed, engaged, and proactive will be best placed to navigate the shift — and to benefit from it.
Use this time to prepare, plan, and protect your business for the long term. New opportunities are coming — and your farm can be ready for them.
Contact Encompass Ag Ltd today to see how we can help you prepare and be in the best possible position for the 2026 SFI announcements.
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