Farming Focus

SFI26 Window 2 is due to open in September.  Defra has not given an opening date as yet, but experience from the current Capital Grants scheme suggests when it does open, the money will go quickly and it won’t be open for long.

Window 2 will be available to all farmers and land managers who have an SBI at the point of application (not 1st January 2026 as was the case under Window 1), with at least 3ha of eligible agricultural land linked to it.  It will also be available to ‘soon-to-expire’ ELM agreement holders – historically, it has not been possible to make an application until an existing agreement had finished, where that land is already tied into specific actions.   But for SFI26 Window 2, Defra has said it is developing new functionality to allow this.  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.

Window 2 has £180m allocated to it plus any unallocated funds from Window 1. Defra will also publish updates when approximately 25%, 50% and 75% of the Window 2 budget has been allocated.

Those requiring help with an application are strongly encouraged to make contact as soon as possible.  Early discussions will allow us to assess your eligibility, confirm that your proposed project meets the scheme requirements, and ensure that the necessary information is in place so that your application can be submitted promptly when the Window opens.  Please contact one of our consultants  or email via [email protected]

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Countryside Stewardship Higher Tier has opened for more farmers.  However, the scheme will continue to be targeted and funding will be limited – meaning that not all those that might want to get an agreement will be successful.

Until recently, Countryside Stewardship Higher Tier (CSHT) applications were only available on an ‘invitation only’ basis.  Invitations were primarily focused on those whose existing CSHT agreements were due to end.  But those without an existing CSHT agreement are now able to submit an Expression of Interest (EOI), although only for defined 3 types of schemes;

• woodland
• agro-forestry
• new ‘single focus’ agreements

The single focus agreements are designed to be simpler than traditional CS agreements as they only focus on one element of land management.  Initially, these will focus on species-rich grassland and the management of scheduled monuments.  Later in the year, it is planned to extend single focus agreements to managing wet grassland and traditional orchards.  Defra expects to offer up to 1,200 of these agreements.  It is possible for a farm to have more than one single focus agreement if it has suitable features.  Submitting an EOI does not guarantee an agreement offer, but applicants will receive a decision within 10 weeks.  To express an interest, applicants must complete an online form; further guidance and the form can be found via https://www.gov.uk/government/publications/express-interest-in-countryside-stewardship-higher-tier

The process for those with existing, expiring, agri-environment agreements will continue much as it is at present.  Land managers with CSHT expiring on 31st December 2026 or those with older HLS agreements expiring anytime before 31st March 2027, will be contacted by Natural England and offered pre-application advice.

There will be a limited opportunity for those whose agreements are not expiring to apply for a new CSHT scheme.  This will be limited to around 300 applicants.  It is unclear whether this will be limited to people already in CHST, or whether this is a chance for completely new applicants to the CS.  Defra have stated that where land managers are changing an existing agreement, ‘increased environmental ambition’ will be required.

It is planned to test CSHT agreements on Common Land later this year – such land had previously not been able to enter either CS or SFI (largely, it seems, due to IT issues).  A wider rollout will then take place if the trial is successful.  CSHT payment rates for moorland actions will be increased to bring them into line with the SFI.

Defra has allocated £50m of funding for CSHT agreements this year.  With expiring schemes to pay for, plus the wider rollout, there must be question marks over whether this budget will be enough.  

For full details see https://defrafarming.blog.gov.uk/2026/07/02/rolling-out-countryside-stewardship-higher-tier/ .

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