The government is expected to set out reforms to sustainable farming incentives this week, including a new application window and greater focus on small farms, as ministers seek to rebuild the relationship with the farming sector.
The proposals were outlined by Defra Secretary Emma Reynolds at the Oxford Agriculture Conference on Thursday 8 January and include changes aimed at improving access to farm support schemes and providing greater clarity on future policy direction.
A central element of the announcement is reform of the Sustainable Agriculture Incentive (SFI), which the government says will be simplified to provide more predictable benefits.
Two application windows are planned for 2026, with the first opening in June and prioritizing small farms and farms without existing agreements, followed by a broader second application window in September. Officials said further details would be released before the first window opens.
Speaking ahead of the conference, Mr Reynolds emphasized the importance of agriculture to this country, saying: “Farmers are at the heart of our national lives: the products they produce, the communities they sustain, the landscapes and heritage they protect.” She added: “British agriculture is also a key growth sector that we are supporting over the long term.”
Alongside the SFI reforms, Defra chiefs will announce a new £30 million Farmers Worker Fund to be delivered over three years, aimed at supporting farmer groups to collaborate, share best practice and explore new business opportunities.
Mr Reynolds also acknowledged long-standing criticisms of the farming system, saying it has “too often been held back by bureaucracy”, adding: “We are transforming it into a system that supports farmers.”
He will develop plans to work more closely with the sector through bodies such as the Agriculture and Food Partnership Board. “We look forward to working with you through our new Agriculture and Food Partnership Board, peer-to-peer networks, community-led changes and engagement with SFI’s detailed changes,” she said, adding that farmers “will have the confidence they need to plan, including clear budgets, clear timelines and a clear roadmap for the future.”
Industry groups broadly welcomed the clarity provided by the announcement, but stressed that access and provision were key. Country Land and Business Association chairman Gavin Lane said the update came after a long period of uncertainty. “After months of stalemate, we finally have much-needed clarity on the short-term direction of Defra’s agricultural plans,” he said.
He said it is essential that SFI works for all companies. “To achieve maximum environmental benefits, it is essential that all farmers, regardless of farm type or size, have access to sustainable farming incentives as soon as possible,” he said.
Mr Lane also welcomed funding for cooperation and expansion of agriculture in protected landscapes. “We welcome the news of the Cooperation Fund and are pleased that the Farming in Protected Landscapes program has been extended as CLA members use the program to develop a wide range of projects that benefit the environment and business,” he said.
Looking ahead, he added: “A long-term vision for agriculture is important and we look forward to working with Defra on the Farm Profitability Review and developing recommendations in the future Farm Roadmap.”
The Green Farming Network said the announcement was a step forward, but warned that small farms face different pressures than large, growth-focused companies. Chief executive Martin Lines said: “June still feels a long way off, but it’s good to finally have some clarity. We particularly welcome the initiative to prioritize small farms.”
He said previous agri-environmental plans often disadvantaged small businesses. “Historically, agri-environmental planning in England has often been a red line competition favoring those with the time and money to drive complex applications,” he said, adding that many small farms “simply don’t have the capacity to play the game”.
Mr Rhine said it was important to recognize the wide-ranging contribution of small farms. “It is heartening to see the government recognize the role of small farms in supporting social cohesion, keeping people on the land and ensuring that public funding for public goods truly rewards these systems,” he said.
However, he cautioned that policies need to reflect day-to-day realities. “For many small farms, the real priorities are to cope with a changing climate, remain viable despite rising costs, and compete in a market increasingly undermined by imported goods produced to lower standards,” he said, adding that for policy to work, “policy needs to be shaped by real pressures and priorities.”
Beyond mainstream agricultural support, the government will also set out proposals to explore new approaches in England’s highlands, where rural communities face challenges such as limited services and difficult farming conditions.
Work is planned over the next two years in areas including Dartmoor and Cumbria to test new funding models, develop agricultural clusters and explore additional sources of income such as nature-based enterprises and regenerative tourism.
There will also be continued support for farmers in protected landscapes, with the Farming in Protected Landscapes program being extended for three years and £30 million allocated next year.
Since its inception, the scheme has supported more than 11,000 farmers across 44 protected landscapes, including projects focused on nature restoration, climate action and cultural heritage.
The announcement follows the launch of the Agriculture and Food Partnership Board, which will feed into a new 25-year agriculture roadmap due later this year. The government says this represents a long-term approach to food production.
