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Sustainable Farming Incentive

Asked by James WildConservativeDepartment for Environment, Food and Rural AffairsTabled Answered 22 June 2026UIN 9705

The question

To ask the Secretary of State for Environment, Food and Rural Affairs, what evidence was used to inform the decision to set the Sustainable Farming Incentive annual agreement cap at £100,000.

Answered by Stephen Morgan

A quarter of Sustainable Farming Incentive (SFI) money goes to just 4% of farms. The Government is making improvements to the offer to ensure more farmers can access funding.

The reformed SFI26 offer will be more focussed, more transparent and fairer so that as many farmers as possible can benefit from agreements.

The new annual agreement cap is a ‘one size fits all’ value cap, applying equally to farms of all sizes. It is set at a high level.

The Government expects that around 97% of farmers will not be affected. Had Defra implemented the same cap for the SFI24 offer, only 3% of agreements would have exceeded the cap.

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