DEFRA Unveils £345m Farmer Support Package And New SFI Offer

Defra has today unveiled a major £345 million package to back English farmers, combining a reformed Sustainable Farming Incentive (SFI) with significant funding for innovation and productivity at the National Farmers Union conference in Birmingham.

Environment Secretary Emma Reynolds told delegates the government is responding to calls from farming leaders for partnership and greater clarity on subsidies and support. The announcement builds on earlier commitments to simplify rural funding and improve certainty for farm businesses across the sector.

A core part of the package is the launch of a new SFI offer for 2026, designed to be simpler and more accessible than previous iterations. Under the plans, Defra says there will be two application windows this year – with a first window opening in June for smaller farms and those without existing agri-environment agreements, followed by a broader September window. Full scheme details will be published ahead of the June launch.

Reynolds said the changes are aimed at making SFI easier to navigate, more transparent and more responsive to farmers’ planning needs, after frustration over the way previous schemes were managed. Defra has pledged it will now set clear budgets for each window and avoid sudden closures without warning.

Alongside the SFI reforms, Defra is putting substantial sums into farm innovation schemes aimed at boosting productivity, cutting emissions and strengthening resilience – continuing a longer-term commitment to technology and research investment in UK agriculture.

Reaction from industry leaders has been broadly positive but cautious, with many welcoming the clarity and signal of support while urging Defra to publish further details on scheme design and delivery to help farmers plan effectively.