Agri-Environment Scheme Uptake in England: SFI, Higher Tier and Funding Gap
Updated: Oct 2
Tens of thousands of agreements are about to end, the new SFI26 round has been a scramble for a fixed pot and Higher Tier is coming back gradually. Here is the picture as it stands in October 2026.
England is heading towards the biggest churn of agri-environment agreements for some time. SFI26 Window 2 opened and closed in under 6 hours on 22 September 2026 - bringing an enormous amount of stress that our industry just didn’t need right now. 12,204 applications were submitted for an average of £20,700 per year and £253 million in total - not enough to fund all of the existing environmental ambition on farms or make sufficient progress towards our environmental targets.
A lot of farmers did not manage to submit an application and a lot of applications across the country were compromised due to system errors and the time pressure to get something in - it takes a long time and a lot of thought to design a scheme that delivers for the environment and works for the farm, and this will have been undone for many being forced to make changes on the fly. There is going to be a lot of patching up and fixing of rushed applications to be done now, assuming that is even a viable option.
Defra have committed to offering an SFI scheme in 2027 and are looking to open SFI27 as early as possible "to ensure farmers can access funding". As you can see from the chart below, and as we all know on the ground - the next offer will have to do a lot of heavy lifting to support our country's environmental commitments and obligations.
👉 The EFRA committee are seeking experiences both of those who were successful and unsuccessful in submitting an application before the window closed: Have you had problems applying for SFI?
Chair of the Efra Committee, Alistair Carmichael MP, said:
At a time when DEFRA needed to build a better level of trust with farmers, the last thing they needed was a day like last Tuesday.
Fig 1. Live agri-environment agreements in England by scheme, 2023 to 2030; figures from 2027 are modelled
CS Higher Tier is opening to a wider audience
Higher Tier is the more complex part of Countryside Stewardship, for farms with priority habitats, species and landscape features. Until recently, it has been invitation-only, but that is changing as of 21 July: you can find more detail on Higher Tier expressions of interest here.
Single-focus agreements are a quicker, simpler route into Higher Tier for a single priority, starting with species-rich grassland and scheduled monuments, with up to 1,200 available initially and with more action types to follow. If you hold a Higher Tier agreement expiring at the end of 2026, or an HLS agreement expiring before the end of March 2027, Natural England has said its advisers will contact you about moving across and part-expiring agreements will be offered extensions.
At least £50 million is being invested into new Higher Tier this year. As with any scheme, but particularly important for Higher Tier - it rewards preparation. The farms that secure one will be those with their habitat information, mapping and options already in order, and for agroforestry, the required plans agreed and trees planted before the Expression of Interest goes in.
Oakbank advises farmers and landowners across agri-environment schemes, from SFI and Higher Tier planning to woodland creation and management, capital grants and the seed and habitat choices behind them. Get in touch and we will work through the options.
