Speaking at the Oxford Farming Conference, Defra secretary Emma Reynolds announced the reopening of the Sustainable Farming Incentive (SFI) scheme.
In what she termed a “new era of partnership” she pledged that a more streamlined SFI will be simpler and fairer but still contain a broad range of options to suit different farms, and with greater emphasis on actions that support sustainable food production.
More details will be announced before the first window in June, which will focus on smaller holdings and farmers without existing environmental land management agreements. A second wider window will open in September.
The Environment Secretary also outlined a new £30 million farmer collaboration fund, to support farmer groups to boost their businesses and work in partnership.
Need to look longer-term
Richard Broadbent, environmental law director at Freeths, was pleased with the news but feels a longer-term outlook is needed.
“The strength of the farming community’s response to the abrupt withdrawal of the SFI, and the subsequent partial U-turn by Defra before the scheme fully closed in August, underlined just how vital this funding is for both farmers and nature. Reinstating it is an important step in recognising the central role agricultural businesses play in managing many of England’s most valuable natural habitats.
“A large proportion of England’s protected sites sit within working farms, and Defra’s own 2024 figures show that nearly half of SSSIs rely on agri‑environment schemes such as Countryside Stewardship, Environmental Stewardship and the SFI. These schemes are therefore essential to safeguarding habitats that are, in many cases, in worrying condition. The Office for Environmental Protection reported last year that only 33.5% of SSSIs were in favourable condition as of September 2025, with more than 20% either stagnating or declining.
“However, as the OEP also highlighted, current funding models, including the SFI, tend to reward one‑off enhancements rather than the long‑term maintenance that is critical for ecological recovery. Short, three‑year agreements do not reflect the decade‑long cycles often needed to restore and sustain healthy habitats. This can unintentionally encourage farmers to delay improvements until new funding rounds open, rather than supporting consistent, year‑on‑year management.
“Reopening the SFI and introducing a new collaboration fund are positive moves, but they must be accompanied by a shift towards long‑term, outcome‑focused support. Only with stable, sustained investment can we expect to halt and reverse the decline of England’s most precious natural sites,” he says.
