Agri-Environment Scheme Uptake in England: SFI, Higher Tier and Funding Gap
- Ana Reynolds
- 7 days ago
- 5 min read
Updated: 6 days ago
Tens of thousands of agreements are about to end, a new SFI26 round has opened with a fixed pot, and Higher Tier is coming back gradually. Here is the picture as it stands in July 2026.
England is heading towards the biggest churn of agri-environment agreements for some time. The individual announcements paint one picture and we have brought together some headline figures to highlight another.
Fig 1. Live agri-environment agreements in England by scheme, 2023 to 2030; figures from 2027 are modelled
Here is the chart in numbers, showing a potential decline in live agreements before anything new is added in, including additional budget.
Table 1. Live agreements at 1 April each year
Year (1 April) | Approx. live agreements |
|---|---|
2023 | 40,000 |
2024 | 55,300 |
2025 | 77,000 |
2026 | 74,000 (estimated) |
2027 | 73,000 (illustrative/model) |
2028 | 61,000 (illustrative/model) |
2029 | 46,000 (illustrative/model) |
2030 | 28,500 (illustrative/model) |
c. 77,000 agreements and near the top of the curve (again)
The last official count for April 2025, shows roughly 77,000 agreements in place across the main schemes: Countryside Stewardship Mid Tier and Higher Tier, what remains of HLS, and the two SFI rounds from 2023 and 2024. Over the coming months and years, time is up for the vast majority of agreements. We estimate that the total has already dropped to around 74,000.
With SFI26 opening and a push for smaller agreements spread across more holdings, some of what is lost will be replaced, but the budget remains largely static to decreasing.
Agreements worth c. £280 million per year expire by the end of February 2027. The date matters as businesses whose agreements finish by the end of February 2027 should get access to new functionality in Window 2 of SFI26, letting them apply early and have their SFI26 agreement start once the old one ends.
The agreements on the chart above total around £1.4bn per annum in committed Countryside Stewardship and SFI payments in 2026 and even with the replacements modelled back in, that falls to about £1.0 billion by 2028 unless the SFI27 round is a great deal more ambitious than SFI26. That is a lot of environmental delivery and farm income income resting on what replaces it.
Agreements worth around £280 million a year expire by next February; the entire SFI26 budget is £240 million, with £50 million more for Higher Tier. Even together, the sums do not add up to making sufficient progress towards our environmental targets.
SFI 2026 has money, but not enough of it
SFI26 opened on 30th June with £240 million for new agreements this financial year, split into a £60 million first window for smaller farms and those without an existing agreement, and a larger second window from September where farmers with expiring agreements can apply.
Defra confirmed that half of that £60 million was committed within days of opening, a quarter after the first day. Set the whole £240 million against the roughly £280 million a year of agreements expiring before that end-February threshold and the problem is clear: the pot is smaller than the thing it is replacing.
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 now, it has been invitation-only, but that is changing: later this summer, farmers will be able to start an application by submitting an Expression of Interest for woodland, agroforestry and the new single-focus agreements.
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.
Things to do now
If your agreement ends at the end of 2026 or in January / February 2027, planning is key - knowing which routes are the best fit for your land and business, getting your RPA digital maps checked and corrected and choosing actions which will genuinely deliver, rather than ones that just look good on a payment calculator.
If your agreement runs past February 2027, your route is the next, SFI 2027 round, which has no announced budget or date, so it is worth keeping your options open and planning early rather than assuming a like-for-like replacement. We know from the Farming Roadmap 2050 that some options are likely to start being phased out and may be an element of spatial targeting of others.
Oakbank advises farmers and landowners across agri-environment schemes, from SFI 2026 applications and Higher Tier planning to capital grants and the seed and habitat choices behind them. If yours is one of the agreements ending, get in touch and we will work through the options.
Frequently asked questions
How many agri-environment agreements are ending in 2026 and 2027?
C. 20,000 agreements end in the 2026-27 financial year (excluding capital grants). Those finishing by the end of February 2027 account for around £280 million a year in payments, and the end-of-February date matters because it is the latest expiry that should let a holder move into SFI26.
Is the SFI 2026 budget enough to replace expiring agreements?
Probably not on its own, but it will depend on the average agreement size. SFI 2026 has £240 million for the year. Half of the £60 million first window was committed within days, so demand may be running ahead of supply.
When can I apply for SFI 2026 if my agreement is ending?
The first window, open from 30 June 2026, is for smaller farms and those without an existing agreement. Farmers with expiring agreements apply in the second window from September 2026, and if your agreement finishes by the end of February 2027 you should be able to apply early so the new agreement starts as the old one ends. Preparation matters, because the budget is fixed and is likely to run out.
What is happening with Countryside Stewardship Higher Tier?
Higher Tier has been invitation-only, but Defra announced in July 2026 that access is widening. From later this summer, farmers can apply via a new Expression of Interest for woodland, agroforestry and single-focus agreements. At least £50 million is committed for new agreements this year.
