SFI & Capital Grants

SFI26 Window 2

Defra has announced Window 2 for the SFI26 will open for applications on the 22nd September.  Window 2 will be available to all farmers and land managers who have an SBI at the point of application, with at least 3ha of eligible agricultural land linked to it.  It will also be available to ‘soon-to-expire’ ELM agreement holders.  This means existing Environmental Land Management (ELM) revenue agreement holders with agreements due to expire on or before 28th February 2027 can apply as soon as SFI26 Window 2 opens, including land still in a ‘soon-to-expire’ agreement.  The new agreement will commence after the existing agreement ends.

Those requiring help or advice with an application are strongly encouraged to contact us as soon as possible.  Early discussions will allow us to assess your eligibility, help you draw up a scheme that works for you, and ensure that the necessary information is in place so that your application can be submitted promptly when the Window opens.  Experience from recent schemes suggests when the Window does open, the money will go quickly and it won’t be open for long. Please contact one of our consultants  or email us via [email protected]

SFI26 Window 1

This has now closed.  It seems that not all of the allocated funding was used – Defra stated that 75% had gone by the 13th July, but the ‘100% used’ announcement was not forthcoming before the application window shut on the 28th August.  Unused funds will be rolled into the Window 2 budget, see below.

Defra received around 6,500 applications in this Window. The average value of an agreement in Window 1 was just under £10,000.  The Department seems pleased that its aim of distributing funding more widely, especially to smaller farms, has been met.  Applicants are reminded that they have 30 days to accept an agreement offer or it will be withdrawn.

Some farmers will have started an application, but had not submitted it when Window 1 closed.  Most of these people should be able to restart the same application when Window 2 opens.

SFI26 Budget

Unused funds from Window 1 will be rolled into Window 2, although there is no indication of the precise figure.  Furthermore, Defra has confirmed £50 million will be added to the SFI26 budget as part of a package of measures to support farmers affected by the drought.  This brings the total for both Windows this year to £290m.  This may help deal with the expected high demand for agreements, especially now that those with ‘Soon-to-Expire’ agreements have been added to those who will be looking to apply. 

SFI 2027

Defra has confirmed that there will be an SFI27 scheme next year.  However, there are no further details at present.  The Government is keen to minimise changes to the scheme as it wants the SFI to be ‘stabilised’.  However, it will incorporate what it learns from both Windows of SFI26 into future schemes.  Therefore, more information is only likely to arrive some time after Window 2 closes.

Capital Grants

The Capital Grants scheme in England closed on the 1st September when the £225 million budget for this round had all been allocated.  The scheme funds works to improve the environment.  Defra received around 17,000 applications during the month the scheme was open.  Of these, 9,500 were applying for a Capital Grants agreement for the first time.  As in previous rounds, hedging and fencing were the most popular options.  Due to the large number of applications, Defra states that it may take the rest of the year for them all to be processed and agreements offered.  The Department has indicated that there will be a further round of the scheme next year, but no details on timing or budgets has been offered.

In a package of measures to help farmers in England cope with the prolonged hot and dry weather, £15m will be made available to help grant-fund on-farm reservoirs.  Details are awaited, but presumably this will be channelled via the ‘larger’ Farming Investment Fund (FIF).

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