Unexpected closure of the Sustainable Farming Incentive (SFI) scheme

The Rural Payments Agency (RPA) announced on 11 March that applications for the Sustainable Farming Incentive (SFI24) are no longer being accepted. This unexpected decision was made without prior notification from DEFRA or the RPA.

This development is viewed as a setback for sustainable and environmental farming initiatives. During an update call today, the RPA explained that the closure of the SFI scheme resulted from achieving targets and allocating funds. They opted not to give advance notice to prevent a surge in applications as the funding had already been exhausted.

Currently, the RPA advises that an SFI update will be published in the summer, with a ‘new and improved’ SFI scheme expected to open for new applications in 2026.

Information for SFI agreement holders:

• All existing SFI agreement holders will continue to be paid under the terms of their agreement for its duration.   
• Agreement holders who entered into a three-year SFI agreement earlier this year will be paid until 2028.   
• Any eligible submitted SFI applications where the agreement has not yet started will also be considered.   
• For those in the SFI pilot, they will be able to apply when the pilot agreement ends. If you were in the pilot and your agreement has ended already, but you do not yet have a live SFI agreement, you will be able to apply.  

Importantly, the RPA clarified that only the Sustainable Farming Incentive is affected. Other programmes, such as the Higher-Tier, opening in the summer, and the Farming in Protected Landscapes fund (which has been extended until March 2026), remain active.

Need help?

If you’d like to discuss this in more detail, please get in touch with your usual Larking Gowen contact. You can find contact details in the Our People section of our website. Alternatively, call 0330 024 0888 or email enquiry@larking-gowen.co.uk.

Arabella Woodruff