Helping landowners navigate a changing funding landscape
Environmental Land Management (ELM) is the framework through which the Government is replacing the old Basic Payment Scheme, rewarding farmers and landowners for delivering public goods – healthy soils, clean water, thriving wildlife and resilience to climate change.
The three components are the Sustainable Farming Incentive (SFI), Countryside Stewardship (CS) Higher Tier, and Landscape Recovery. The situation across all three has changed significantly since 2022, and professional advice has never been more important.
Sustainable Farming Incentive (SFI)
On 11 March 2025, the Government announced with immediate effect that it was no longer accepting applications for the SFI until a revised scheme was opened in 2026. All existing agreements are being honoured, and applications that were awaiting approval at the time of closure were not affected. FootAnsteyCla
Defra has confirmed that applications for SFI 2026 are expected to open from 30 June, with a limited test phase starting around 18 June. The department describes it as an “iterated version” of the 2024 scheme with a simplified structure, supporting sustainable food production alongside actions that improve soil health, protect water quality, support nature recovery and strengthen farm resilience. Farmers Weekly
SFI 2026 is a more streamlined version of the previous offer, with the available actions reduced from 102 to 71 – removing options with low uptake or low impact. Barn Owl Trust
There will be two application windows in 2026. The first, opening from 30 June, will prioritise smaller farms (up to 50 hectares) and those without an existing ELM revenue agreement. A second window will open in September for all eligible farmers. Each business will be limited to a single agreement worth up to £100,000 per year. Farmers Weekly + 2
Countryside Stewardship (CS) Higher Tier
At least £50 million will be available for new Countryside Stewardship Higher Tier agreements in 2026, supporting targeted environmental improvements where they will have the greatest impact. The Government expects to continue supporting important habitats such as species-rich grassland through new targeted agreements. Higher Tier remains on a controlled roll-out, with invitations issued to identified farm businesses. Farmers Guardian
Landscape Recovery
£500 million has been committed to Landscape Recovery, focused on longer-term support across multiple farms. The Government is progressing the next group of Landscape Recovery projects expected to move into implementation in 2026. Farmers WeeklyFarmers Guardian
Farming in Protected Landscapes (FiPL)
For those farming within National Landscapes and National Parks – including the High Weald, South Downs, Surrey Hills and Kent Downs – the Farming in Protected Landscapes programme remains open for applications. From April 2026, the programme has been extended for a further three years, running until March 2029. It is funded by Defra and operated locally by individual protected landscape teams. Kent DownsHighweald
The programme funds projects that support nature recovery, mitigate the impacts of climate change, provide opportunities for people to discover and enjoy the landscape, and conserve its cultural heritage.
Capital Grants
The Capital Grants offer is open for new applications, with £150 million of funding available to farmers, land managers and rural businesses for practical environmental improvements across England. Capital grant applications open in July 2026. blogBarn Owl Trust
The funding outlook
Following the 2025 Spending Review, Defra has secured a multi-year funding commitment from HM Treasury. More than £2.7 billion a year will be invested in sustainable farming and nature recovery from 2026 to 2029, with funding for ELM schemes paid to farmers set to increase by 150% over this period. Defra
Act now – the window is open
Many SFI 2023 and Countryside Stewardship Mid-Tier agreements are approaching the end of their term. Understanding which actions suit your land over the next five years will place you in a strong position for success under SFI 2026. Given the pace of change – and the risk of budgets being fully allocated before windows close – taking professional advice early is essential. Farmers Weekly
Batcheller Monkhouse advises landowners and farmers across Kent, Sussex, Surrey and Hampshire, from large traditional estates to smaller holdings. Contact your local office to discuss the options available to you.
