SFI 2026 Payment Rates Complete Guide

SFI 2026 Overview

The Sustainable Farming Incentive (SFI) is the cornerstone of England's Environmental Land Management (ELM) schemes, replacing Basic Payment Scheme (BPS) as the primary source of farm subsidy income.

SFI 2026 offers the most comprehensive range of actions yet, with significantly improved payment rates and simplified application processes. Unlike competitive schemes like FETF, SFI is non-competitive – if you meet the requirements, you'll receive the funding.

What's New in 2026?

🔄 Expanded Action Range

• 25 new actions added across all land types
• Enhanced water management actions with premium rates
• Carbon sequestration actions for peat and woodland
• Integrated pest management for reduced chemical use

💰 Increased Payment Rates

Average payment rates have increased by 15-25% compared to 2025, with the highest-paying actions now exceeding £600 per hectare.

📱 Simplified Management

• Reduced evidence requirements for most actions
• Digital monitoring for many environmental outcomes
• Flexible agreement amendments during the term

Arable & Horticultural Actions

Action Code	Action Name	Payment Rate	Land Type
SAM1	Assess soil, produce a soil management plan	£97/ha	Arable
SAM2	Multi-species winter cover crops	£129/ha	Arable
SAM3	Herbal leys	£382/ha	Arable/Temp grass
NUM1	Assess and record nutrient management	£40/ha	All eligible land
NUM2	Leguminous fallow	£593/ha	Arable
NUM3	Enhanced nutrient management	£55/ha	Arable
IPM1	Integrated pest management plan	£65/ha	Arable
IPM2	Flower-rich grass margins and plots	£798/ha	Arable margins
IPM4	Enhanced overwinter stubbles	£166/ha	Arable

Grassland Actions

Action Code	Action Name	Payment Rate	Management Level
LIG1	Assess grassland soils and produce a grassland plan	£40/ha	Basic
LIG2	Manage grassland with very low nutrient inputs	£151/ha	Intermediate
LIG3	Manage grassland with low nutrient inputs	£182/ha	Enhanced
GRH1	Take grassland field corners out of management	£590/ha	Enhanced
GRH2	Winter bird food on improved grassland	£853/ha	Enhanced
GRH3	Herbal leys	£382/ha	Intermediate
PRG1	Manage permanent grassland with very low inputs	£528/ha	Enhanced
PRG2	Manage permanent grassland with low inputs	£614/ha	Enhanced

Moorland & Rough Grazing Actions

Action Code	Action Name	Payment Rate	Land Type
MOR1	Assess moorland and produce a plan	£265/ha	Moorland
UPL1	Manage rough grazing for birds	£105/ha	Rough grazing
UPL2	Manage moorland	£265/ha	Moorland
UPL3	Manage upland grassland with low inputs	£323/ha	Upland grassland
UPL4	Supplement feed for birds on upland grassland	£640/ha	Upland grassland

Boundary & Linear Features

Action Code	Action Name	Payment Rate	Unit
CAHL1	Assess and record hedgerow condition	£3/100m	Per 100m
CAHL2	Manage hedgerows	£13/100m	Per 100m
CAHL3	Enhance hedgerows	£24/100m	Per 100m
CSAM1	Create grass buffer strips	£515/ha	Per hectare
CSAM2	Create pollinator habitat	£673/ha	Per hectare
CSAM3	Create beetle banks	£573/ha	Per hectare

Water & Wetland Actions

Action Code	Action Name	Payment Rate	Management Level
AWC1	Assess watercourses and produce a plan	£265/ha	Basic
AWC2	Manage watercourse	£39/100m	Intermediate
AWC3	Enhanced management of watercourse	£58/100m	Enhanced
WET1	Manage existing wetland habitat	£356/ha	Intermediate
WET2	Create and maintain temporary wetland	£2,244/ha	Enhanced

Eligibility & Application

📋 Basic Requirements

• Registered Business Identifier (SBI)
• At least 5 hectares of eligible land in England
• Management control of the land for the agreement period
• Meet basic cross-compliance requirements

🕒 Application Process

SFI applications are open year-round, making it more flexible than time-limited schemes like FETF or Countryside Stewardship.

1. Check eligibility: Use the online checker or speak to an advisor
2. Plan your actions: Select actions that suit your farming system
3. Submit application: Complete online application form
4. Agreement offer: Receive offer within 8 weeks
5. Start agreement: Begin actions within 12 months

Payment Calculator Example

Maximising Your SFI Income

💡 Strategic Action Selection

Focus on Higher-Value Actions:

• PRG2 (£614/ha) - Highest single payment rate
• WET2 (£2,244/ha) - Exceptional for suitable land
• GRH2 (£853/ha) - High value for wildlife management
• IPM2 (£798/ha) - Excellent for field margins

Stack Compatible Actions:

• Combine NUM1 (£40/ha) with most other actions
• Add boundary features (hedgerows) for extra income
• Layer soil and nutrient management plans

🔄 Integration with Other Schemes

• Countryside Stewardship: Some actions can run alongside CS
• FETF Equipment: Use FETF to buy equipment for SFI actions
• Carbon Credits: Some SFI actions qualify for carbon trading

⏰ Timing Your Application

• Apply in autumn for actions starting the following spring
• Consider your crop rotation when planning arable actions
• Align with other scheme deadlines for integrated planning

Key Takeaways

SFI 2026 offers unprecedented opportunities for farm income diversification, with payment rates that can genuinely replace BPS income and more. The key to success is:

• Strategic selection of high-value actions that suit your system
• Integration with existing farming practices where possible
• Long-term planning across the 3-year agreement period
• Compliance with all action requirements from day one

With applications open year-round and non-competitive funding, there's never been a better time to explore how SFI can enhance your farm's environmental and financial sustainability.

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Payment rates updated for 2026. Always check the latest official guidance for the most current information and specific eligibility requirements.