The Sustainable Farming Incentive (SFI) has been a major driver in helping farmers make that shift. And even very productive farms could be exploring ways to boost environmental gains, with a mosaic approach – employing small areas of the farm to good effect – often working well.

The impact of SFI so far

At the beginning of this year there were 32,200 active SFI agreements in England, up 23% on October 2024. For farmers who were already moving in the direction of regenerative techniques, the SFI provided an opportunity to be rewarded for doing so. 

The cropping aspect of SFI has been one of the biggest uptakes, with legume fallows – which provide green cover, a source of pollen and nectar production, varied rooting, work with weed control practices  to reduce herbicide use and resistance, and put a sustainable, financially stable long-term rotation, back in the mix – offering an alternative to conventional break crops.

While SFI may not be perfect, it is has been an attractive and widely adopted  scheme, it’s to be hoped that the next iteration continues in a similar vein.

Spring 2026 – where next for SFI?

The sudden closure of the scheme in March 2025 caused a lot of concern for farmers and landowners, as well as being a further contributor to  loss of confidence in the sector. The next SFI announcement is set for spring 2026 and the indications are that there will be a reining back of the whole-field options, or a stricter cap on whole areas. 

A closer alignment to mid-tier options and a cap on the total hectares entered or the claim amount also looks likely.

The latter may have an impact on the environmental benefits derived from the scheme, as larger farms and estates which tend to have a higher impact on biodiversity or water quality will be disadvantaged by a cap. 

Inevitably, some land will come out of SFI options and back into production.

What are the alternatives?

Initiatives from the supply chain could provide possible alternative income sources. Frontier offers premiums to growers who supply crop production data and payments for certain farming practices, while Tesco rewards farmers meeting targets and providing support for baseline data collection on soil, water and biodiversity. 

While current uncertainties over the future of SFI and its successor continue, the number of regenerative and sustainable farming supply contracts from the commercial sector has increased. Many of the contracts dovetail well with the existing SFI options, incentivising producers with additional financial benefits. 

With over 40 different contracts across the farming sectors, this continues to be an evolving and important source of income. The supply chain will increasingly require data and evidence to support its own commitments – engaging with their initiatives is an alternative to SFI income, but ideally the two will work together.

Further information

Contact Ed Horton or Andrew Wraith

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