England is preparing to reopen agri-environment funding with a £290 million package that puts soil, water and wildlife at the centre of farm support. The government says applications for SFI26 will open from 30 June 2026 for small farms and for businesses without an existing Environmental Land Management revenue agreement, with a second window due in September for the wider sector. Of that total, £240 million is reserved for new SFI26 agreements and at least £50 million for new Countryside Stewardship Higher Tier deals. Ministers say this sits on top of more than £560 million already committed, and the political promise is simple: get more public money to working and family farms while backing the land they depend on.

The redesign is a response to a blunt problem in the earlier scheme. Government figures show a quarter of the previous Sustainable Farming Incentive budget went to just 4 per cent of farms, a distribution that fuelled concerns that smaller and family-run businesses were being left behind. SFI26 tries to correct that with a £100,000 annual agreement cap, a one-agreement limit for each farm business and an end to the SFI management payment for new deals. Nearly all actions will also move to a standard three-year term, and ministers say the offer was shaped with farmers and industry groups to make the process clearer, including for tenant farmers. A further rule will limit how much land can be added to rotational actions after the first year, which is meant to give the budget more certainty.

The environmental case for the scheme is practical rather than abstract. Farmers are being paid for measures that can improve soil health, keep waterways cleaner and make room for wildlife, with the new offer also including actions that encourage lower use of synthetic fertilisers. That shift matters in farm business terms as well as ecological ones. Less dependence on synthetic fertiliser can reduce exposure to volatile input prices, trim costs and help holdings cope better with supply shocks. For rivers, pollinators and field soils, the hoped-for gain is a farming model that produces food while putting less pressure on the natural systems that keep yields stable.

Access rules will shape who benefits first. Of the SFI26 budget, £60 million has been set aside for the first application window, which is aimed at small farms and businesses that do not already have an Environmental Land Management revenue agreement. If that money is not fully used, the remainder will roll into the second window. From September 2026, all farmers and land managers are expected to be able to apply. The government also says it is building a new function into the application service so land in soon-to-expire agreements can be entered before those deals end. That could help farms avoid funding gaps, although some smaller businesses with expiring agreements may decide the September window offers a stronger route if the new function is confirmed in time. Ministers say they aim to settle that point before the first window opens.

The wider package points to a more targeted approach on nature. At least £50 million is due to go into new Countryside Stewardship Higher Tier agreements this year, with the government signalling that species-rich grassland and other important habitats remain in scope where the environmental return is strongest. Ministers also say the next group of Landscape Recovery projects should move into implementation during 2026, supporting larger restoration work across rivers, habitats and connected areas. Separately, the latest Capital Grants round, announced on 28 May, is expected to open in July with £225 million available, which the government says is 50 per cent more than in 2025 for infrastructure and on-farm improvements.

Environment Secretary Emma Reynolds has framed the changes around food security, rural jobs and fairness. Her case is that farmers do far more than produce crops and livestock: they keep rural communities working and manage much of the land that determines water quality, habitat condition and long-term resilience. That is why this policy matters beyond the farm gate. Better soils hold water more effectively in dry periods and release it more slowly in wet ones. Cleaner ditches and streams reduce downstream pressure. More space for insects and birds supports the biological checks that farms often lose when production becomes too chemically intensive. If SFI26 is well delivered, the benefit should be felt in both farm accounts and local nature recovery.

There is still a hard test ahead. Simpler rules on paper do not always translate into simple applications, and smaller businesses will judge SFI26 by how easy it is to read the guidance, choose from the 71 available actions and receive payments without delay. Ministers say they want to confirm the new application route for expiring agreements before the first window opens, which will matter for farms deciding whether to apply in June or wait for September. Even so, the direction is constructive. England is putting public funding behind healthier soils, cleaner water and greater resilience at a moment when farming is under pressure from costs, weather and uncertainty. For farmers, the immediate task is to check eligibility and timing. For everyone else, this is a reminder that food security and nature recovery are not competing ideas when policy is designed well.