Following Emma Reynolds’ announcement at the Oxford Farming Conference on 8 January 2026, DEFRA has confirmed that the 2026 Sustainable Farming Incentive (SFI) will be delivered through two separate application windows.

The first window, opening in June 2026, will be for smaller farms and those without existing scheme agreements. Early indications suggest that “small farms” will be defined as holdings of less than 50 hectares. A second, wider window will follow in September 2026 for all remaining farm businesses. Although this provides more certainty than we have seen in recent years, significant details are awaited on the structure of the scheme, payment rates, and the potential for any caps or limits. As recent experience has shown, application windows can open and close quickly, therefore early preparation remains one of the most effective strategies for farmers and land managers looking to maximise the opportunities available.

Carter Jonas have a range of specialists across the country who provide tailored rural grant advice to clients. Preparing in advance remains central to a successful application, particularly as schemes continue to evolve and application windows can be short. As we enter 2026, the following five considerations can help farmers and land managers position themselves effectively for forthcoming opportunities:

1. Review current position

Now is the time to discuss your options for 2026, particularly in light of the staggered SFI application windows. Understanding whether your business is likely to fall into the June or September window will help you prioritise actions and manage expectations, including cash flow planning.

Having schemes, land parcels, and priorities discussed and agreed in advance enables you to move quickly once applications open. As recent years have demonstrated, DEFRA may still adjust timelines or restrict access at short notice, and well‑prepared businesses are best placed to respond. Early conversations can also reveal alternative funding routes that may deliver benefits sooner. One example is the Farming in Protected Landscapes (FiPL) scheme, which provides grants for hedging, trees, and fencing and is due to open again from March 2026. For some businesses, this may offer a more timely option than waiting for Capital Grants to reopen later in 2026.

2. Prepare for Capital Grants

Based on historic grant items, consider what your holding is likely to require and begin administrative preparation early. This may include fencing, hedging, or wider infrastructure works. Preparing maps and draft application documents in advance will put you in a strong position to submit quickly once Capital Grant windows open. Early preparation not only reduces pressure at the point of application but also ensures that any necessary supporting information is ready and accurate.

3. Check RPA Information

Ensure that all land use, boundary information and holding details are accurate on your RPA account. Updates can take several months for the RPA to process and any discrepancies may prevent you from applying for funding if land parcels are not correctly registered.

4. Remember declarations and deadlines

Missing SFI or Countryside Stewardship annual declarations, or Capital Grant claim deadlines, can be an expensive mistake and may result in payment reductions or the loss of funding altogether. Make sure these deadlines are clearly diarised and that all relevant members of the business are aware of them.

5. Cash Flow Implications

With SFI application windows not opening until June and September 2026, grant income will not be received until later in the year at the earliest. This may create a funding gap for businesses coming out of existing agreements or those that rely on environmental payments as part of their annual cashflow. It is important to factor this delay into working capital and cashflow planning, particularly where environmental income supports routine costs, to avoid unnecessary pressure on the business. Early financial forecasting can help identify pinch points and ensure appropriate measures are in place to maintain stability during the transition.

In an environment where certainty remains limited, preparation remains your strongest asset. Taking proactive steps now will ensure you are well placed to act when the 2026 SFI and other environmental funding opportunities open, helping your business make the most of the schemes available and navigate the transition with confidence.

If you would like to discuss environmental stewardship opportunities, please contact you local Carter Jonas Office.