Sustainable Farming Incentive (SFI) 2026: A Complete Guide for UK Farmers
The Sustainable Farming Incentive is the main environmental payment scheme replacing the Basic Payment Scheme. In 2026, over 100 SFI actions are available paying £28–£700+ per hectare depending on the action. Most farms can access £15,000–£60,000 annually. Applications are open year-round and you can add actions mid-agreement. Apply through the Rural Payments Agency online portal.
- What is the Sustainable Farming Incentive?
- How much can you earn from SFI?
- How to apply for SFI
- The most valuable SFI actions for arable farms
- Stacking SFI with Countryside Stewardship
What is the Sustainable Farming Incentive?#
The Sustainable Farming Incentive (SFI) is a UK government scheme paying farmers to deliver environmental and public goods — things like improving soil health, managing hedgerows, creating wildlife habitat, and reducing chemical use. It replaced part of the old Basic Payment Scheme (BPS) and is the main route through which most UK farmers will receive future government support. Unlike BPS, which was paid per hectare of agricultural land regardless of what you did with it, SFI pays you for specific, defined actions on your land. The more actions you enter, the more you are paid — and many actions can run simultaneously on the same land.
How much can you earn from SFI?#
Payment rates vary widely by action. Some examples: Assess soil, produce a soil management plan and test soil organic matter (CSAM1): £95/agreement; Undersow spring cereals with a grass or legume mix (AHL1): £45/ha; Create or maintain a flower-rich grass margin, in-field strip or block (IGL1): £590/ha; Manage hedgerows (HEDW1): £13/100m. A 400-hectare mixed farm with hedgerows, margins, and an active arable rotation could reasonably access £25,000–£50,000 per year in SFI payments. A grassland livestock farm in a less-intensive system may access more through herbage and habitat actions. The Rural Payments Agency provides a payment calculator to estimate your specific entitlement.
How to apply for SFI#
Apply through the Rural Payments Agency (RPA) portal at ruralpayments.org. You need a Single Business Identifier (SBI) and your land registered in the Rural Land Register. The process: log in to the Rural Payments portal, navigate to SFI, choose your actions from the list, map the land parcels each action will apply to (the system imports your existing land register), review the payment calculation, and submit. Applications can be made at any time of year — there are no application windows as with legacy schemes. Agreements typically start within 30 days of approval and run for 3 years. You can add new actions mid-agreement.
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The most valuable SFI actions for arable farms#
For arable farms, the highest-value actions per-hectare are typically: Manage grassland with very low nutrient inputs for wildlife (LIG1) at up to £151/ha on eligible areas; Create flower-rich grass margins (IGL1) at £590/ha for field margins and in-field strips; Establish and maintain an arable field margin (AHL1 variants) at £45–£590/ha; and Companion cropping actions that pay £55–£100/ha for integrating legumes into combinable crop rotations. Cross-compliance with ongoing arable production is generally well-designed — most SFI actions are compatible with standard rotations.
Stacking SFI with Countryside Stewardship#
SFI and Countryside Stewardship (CS) agreements can be stacked on the same farm, and on the same land in some cases. The general rule is that you cannot claim two payments for doing the same thing on the same piece of land — but SFI and CS actions that are complementary and do not duplicate each other can run simultaneously. Many farms with existing Higher Level Stewardship or CS agreements are now adding SFI on top. Review your existing CS agreement terms carefully, or ask your local Countryside Stewardship adviser, before applying for SFI on the same parcels.
Common mistakes to avoid when applying for SFI#
The most common SFI mistakes are: not mapping land parcels accurately (the RPA checks against satellite imagery — inaccurate mapping can lead to payment clawbacks); choosing actions that conflict with existing CS agreements on the same parcels; selecting actions you cannot realistically deliver (a failed SFI inspection leads to payment suspension and potential repayment demand); and not updating the RPA when land changes hands or tenancy agreements change. Keep records of everything you do under SFI — photographic evidence of field margins, soil sampling results, and maintenance records — as the RPA conducts random spot-checks.
People also ask
How much does SFI pay per hectare?
SFI payment rates vary enormously by action — from £13 per 100m of hedgerow to £590/ha for flower-rich grass margins. Most arable farms accessing a range of actions receive £50–£150/ha on the area they enter into SFI. A farm entering 200ha into various SFI actions might receive £10,000–£30,000 annually.
Can tenant farmers apply for SFI?
Yes. Tenants can apply for SFI provided their tenancy agreement does not prohibit it and they have management control of the land for at least the duration of the 3-year SFI agreement. The RPA will check that the applicant has management control. Some actions require landlord consent — review your tenancy agreement or seek advice from your land agent.
What happens if I fail an SFI inspection?
If an RPA inspection finds non-compliance with SFI action requirements, payments can be withheld or reduced, and in serious cases, clawback of previous payments may be demanded. Non-compliance is most commonly found in field margins that have not been maintained and where the required plant species are absent. Keeping photographic records throughout the year provides evidence of compliance.
Is SFI worth it for small farms?
Yes. SFI has no minimum farm size and is open to all registered farm businesses. A 50-hectare farm with hedgerows, a few grass margins, and soil management actions could access £3,000–£8,000 annually. The application process takes 2–4 hours once your land is registered in the Rural Payments system.
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