SFI: Defra considering ending 'first-come, first-served' application process for 2027

The second and final SFI window this year opened on Tuesday, however Defra closed it in less than six hours as the £233m fund had been completely allocated.

The Government is considering changing the Sustainable Farming Incentive application process from first-come first-served for 2027, after the latest window closed within hours.

Farming groups have criticised the Department for Environment, Food and Rural Affairs (Defra) for failing to allocate enough funding for this year’s SFI, with many farmers missing out after being out in the fields.

The scheme pays farmers in England for “public goods” such as insecticide-free farming, wildflower strips and managing ponds and hedgerows.

The second window, for all farms, opened on Tuesday, however Defra closed it in less than six hours as the £233m fund had been completely allocated.

A smaller window originally opened in June for farms of less than 50 acres and those new to SFI.

The National Farmers’ Union said it had warned repeatedly that the SFI lacked a “sufficient budget” and “yet again, Defra has created a position where there are the ‘haves’ and the ‘have nots’ in the sector based purely on the speed of pressing a button”.

Farming minister Stephen Morgan (left) and Prime Minister Andy Burnham during a visit to F G Pryor & Son Ltd, Colwyn Farm near Truro, Cornwall. Picture date: Saturday August 15, 2026.placeholder image
Farming minister Stephen Morgan (left) and Prime Minister Andy Burnham during a visit to F G Pryor & Son Ltd, Colwyn Farm near Truro, Cornwall. Picture date: Saturday August 15, 2026.

The Country Land and Business Association said “many applicants never even got the chance to apply as they were feeding livestock, sowing fields etc, with no expectation that the window would close the same day it opened”.

Last year, Defra closed SFI applications abruptly, with many farmers facing a cliff edge until this year’s five-hour window.

Farming Minister Stephen Morgan explained that he would look at opening next year’s SFI as soon as possible, and potentially change the first-come, first served nature of applications.

He said: “Farmers will receive almost a third of a billion pounds each year for three years under new SFI26 agreements.

“That’s nearly a billion pounds invested in resilient farming.

“Previously a quarter of funding headed to just 4 per cent of farms making claims.

“That’s why this government developed a fairer system to reach more farmers by capping applications at £100,000, and ensured small farms and those new to environmental land management schemes were prioritised.

“I know some farmers who wanted to join SFI26 will be deeply disappointed not to have secured an agreement during Window 2, particularly given the challenges the sector has faced this year.

“I have heard those concerns and am determined to work closely with farmers as we learn lessons from this year and shape SFI27, including exploring alternatives to a first-come, first-served application process.”

Mr Morgan also said that those who faced IT issues when applying, as well as those who require support from the Rural Payments Agency, would be able to continue their application.

CLA director north Harriet Ranson said that “members who were able to get onto the system have registered their utter disgust with the online application process which entailed numerous systemic difficulties leaving them in a limbo of whether their applications would be noted or does the wheel of doom mean it's game over”.

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