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24 February 2026

£345 Million Farming Package Unveiled - SFI, FETF and Capital Grant 2026 Updates

£345 Million Farming Package Unveiled - SFI, FETF and Capital Grant 2026 Updates

A package of new measures affecting farm support, technology funding and capital grants was set out at the National Farmers’ Union Conference 2026 in Birmingham today.

Ministers confirmed changes to the Sustainable Farming Incentive alongside fresh detail on equipment grants, capital funding and animal health measures.

The announcements form part of a wider £345 million package aimed at farm productivity, resilience and long-term food supply.

Speaking to NFU conference delegates, Environment Secretary Emma Reynolds said the government was focused on giving farmers greater certainty and backing investment in both day-to-day productivity and longer-term resilience.

At a glance: farming funding for 2026

SFI 2026 Scheme

  • 71 actions available to apply for
  • Applications capped at £100,000 per farm per year
  • All actions will run for 3 years (previous schemes included some 5-year options)
  • Applications open in June for small farms and those not currently in an ELM revenue scheme
  • A small farm is now defined as between 3ha and 50ha
  • Payment rates will change for some options, with higher moorland rates backdated to existing SFI agreements
  • The £50 per hectare management payment has been removed
  • Rotational actions can move in years 2 and 3, but the area entered cannot be increased

Farming Equipment and Technology Fund (FETF)

  • Returning with a £50 million budget
  • Funding aimed at improving productivity, managing slurry, and improving animal health and welfare
  • Applications open on 17 March 2026 and close at midday on 28 April 2026
  • Eligible items are set out in published productivity, slurry and animal health and welfare lists

Capital Grants 2026

  • Opening in July 2026
  • £225 million budget, a 50 per cent increase on the £150 million available in 2025

Farmers considering applications in 2026 should keep an eye on full SFI scheme guidance ahead of the June opening, including final payment rates and action rules.

Those interested in FETF will need to be ready for the 17 March application window, with scoring likely to determine access. Further detail on the September SFI window and any sector-specific guidance is expected later in the year.

If you would like to discuss the new funding further, please get in touch with Chris Muir or Lizzy Elgie in the StephensonsRural team.