DEFRA Clarifies SFI26 Applications for Existing Stewardship Agreement Holders

June 2026

By Lloyd Stone, Apprentice Agriculture Surveyor

DEFRA has today opened Window 1 of the Sustainable Farming Incentive (SFI) 2026 and, alongside this, has published updated guidance for the scheme.

Whilst a number of changes have been made, one of the most significant provides clarity for businesses with existing Stewardship and SFI agreements that are due to expire towards the end of this year or in early 2027.

Greater certainty for existing agreement holders

Until now, it had generally been understood that businesses with existing agreements, such as SFI23, Countryside Stewardship Mid-Tier, Higher Tier and Higher Level Stewardship (HLS), would be unable to apply for SFI26 until their current agreement had ended.

This created uncertainty for many businesses. If their agreement expired after the current SFI application window had closed, it was assumed they may have to wait until a future application window, potentially leaving a period with no agreement in place and no associated funding.

DEFRA has now provided welcome clarification on this issue.

What has changed?

To ensure eligible businesses are not disadvantaged, DEFRA is introducing new functionality to the SFI26 application process.

From Window 2, opening in September 2026, eligible businesses will be able to submit an application for SFI26 before their existing agreement comes to an end.

This applies to agreements expiring on or before 28 February 2027 under the following schemes:

SFI23
Countryside Stewardship Mid Tier (CSMT)
Legacy Countryside Stewardship Higher Tier (CSHT)
Environmental Stewardship Higher Level Stewardship (HLS)

Although applications can be made in advance, the new SFI26 agreement will not begin until the existing agreement has expired. This ensures there is no overlap between agreements whilst allowing a seamless transition from one scheme to the next.

What if my agreement expires after February 2027?

Businesses with agreements due to expire from 31 March 2027 onwards are expected to apply through a future SFI offer, likely to be launched during 2027. DEFRA has confirmed that further details will be announced in due course.

What does this mean for farmers?

This update provides much-needed certainty for businesses whose agreements are due to expire over the coming months. Eligible applicants should now be able to move directly from their existing agreement into SFI26 without an unnecessary break in funding or environmental scheme participation.

This announcement also resolves one of the key uncertainties surrounding the launch of SFI26 and should provide reassurance to many farmers who were unsure how and when they would be able to enter the new scheme.

If you have an existing SFI or Stewardship agreement and are unsure how these changes affect you, or would like advice on applying for SFI26, please contact your local GTH office or email [email protected]. We would be pleased to discuss your options and help you plan the transition to your next agreement.

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