💰 Grants & Funding
Step-by-Step Guide to UK Farm Grants 2026: How to Apply & What You Need
If you’re a UK farmer trying to make sense of the post‑Brexit grant landscape, you’re not alone. The old CAP payments are gone, and in their place we now have a patchwork of new schemes—ELM, SFI, FIF, plus a handful of smaller funds. It can feel overwhelming, but the good news is there’s more money available than ever for those who know how to access it.
This guide walks you through each major scheme in plain, practical language. You’ll learn exactly what’s on offer, whether you qualify, how to apply, and—just as importantly—what pitfalls to avoid. By the end you’ll have a clear roadmap to securing the grants your farm needs in 2026.
1. The Current Grant Landscape: What’s Changed Since Brexit
Before diving into the individual schemes, it’s worth taking a step back to understand the big picture. Brexit wasn’t just a political shift—it rewrote the rulebook for agricultural funding.
The old system (CAP) was largely based on how much land you farmed. The new Environmental Land Management (ELM) approach pays you for delivering “public goods”: clean water, thriving wildlife, healthy soils and a reduction in carbon emissions. If you’re used to getting a Basic Payment Scheme (BPS) cheque every year, you need to start thinking differently.
Key changes for 2026:
- BPS is being phased out – the final payments will be made in 2027, with reductions each year until then.
- ELM is rolling out gradually – the three main components are:
- Sustainable Farming Incentive (SFI) – the “entry‑level” scheme that’s open to almost every farmer.
- Countryside Stewardship – the mid‑tier scheme for more ambitious environmental projects.
- Landscape Recovery – large‑scale, long‑term projects (500+ hectares, often involving multiple farms).
- The Farming Investment Fund (FIF) is separate – it’s a capital‑grant scheme for equipment, technology and infrastructure.
- Other niche funds – such as the Farming in Protected Landscapes (FiPL) programme – continue to run alongside the main schemes.
Bottom line: You’ll need to mix and match. Most farms will combine SFI (for ongoing income) with a FIF grant (for a one‑off investment) and possibly a Countryside Stewardship agreement (for bigger environmental work). It’s more paperwork, but it also means more potential income streams.
2. ELM Scheme Breakdown: Your New Main Income
The Environmental Land Management (ELM) scheme is the cornerstone of post‑Brexit farm support. It’s split into three tiers, each designed for a different level of ambition.
2.1 Sustainable Farming Incentive (SFI) – The Foundation
SFI is the simplest and most accessible part of ELM. You’re paid for adopting specific land‑management actions that benefit the environment. Think of it as a “pay‑as‑you‑go” scheme: you choose which actions you want to deliver, and you get paid per hectare (or per linear metre) for each one.
2026 SFI payments at a glance:
| Action | Payment (per hectare/year) | Notes |
|---|---|---|
| SAM1 – Assess soil health & produce plan | £20/ha | One‑off payment in first year |
| SAM2 – Multi‑species ley | £120/ha | Must be in place for at least 3 years |
| AHL1 – Flower‑rich grass margins | £450/ha | Min. 6m width, no fertiliser/herbicide |
| AHL2 – Winter bird food | £640/ha | Must be left until 1 March |
| IPM3 – Integrated pest management | £55/ha | Requires detailed records |
How to apply:
- Check eligibility – You need at least 5 ha of eligible land (or 3 ha for horticulture). The land must be registered with the Rural Payments Agency (RPA).
- Choose your actions – Pick the ones that fit your farm’s rotation and existing practices. You can combine multiple actions on the same parcel (stacking).
- Submit your application online – Use the RPA’s online service. You’ll need your Single Business Identifier (SBI) and land‑parcel details.
- Sign the agreement – Once approved, you’ll get a contract to sign. Payments start after you’ve completed the first year’s actions.
Pro tip: Start with the low‑hanging fruit. SAM1 (soil assessment) is a quick win that pays £20/ha and sets you up for future actions. AHL1 (flower‑rich margins) is one of the highest‑paying options if you have field edges to spare.
2.2 Countryside Stewardship – The Mid‑Tier Option
Countryside Stewardship (CS) is for farmers who want to go beyond the basic SFI actions. It supports more ambitious environmental projects—creating wetlands, restoring hedgerows, planting woodlands—with higher payments but more paperwork.
Key CS options for 2026:
- Higher Tier – Complex, multi‑year projects (e.g., river‑restoration, peatland re‑wetting). Requires a surveyor or adviser to help design the application.
- Mid Tier – Standard environmental improvements (e.g., hedgerow planting, wild‑bird seed mixes). Can be applied for directly online.
- Capital Grants – One‑off payments for infrastructure like fencing, gates, water‑troughs.
Application windows:
- Mid Tier – Opens 1 March 2026, closes 31 July 2026.
- Higher Tier – By invitation only; expressions of interest close 30 April 2026.
What you’ll need:
- A farm map (printed from the Rural Payments service).
- Evidence of land ownership/occupancy.
- Quotes for any capital items (if applying for capital grants).
- An adviser for Higher Tier applications (strongly recommended).
Don’t rush: CS applications are scored. The better your proposal aligns with local priorities (e.g., water‑quality improvements in a nitrate‑vulnerable zone), the higher your score and the more likely you are to be funded.
2.3 Landscape Recovery – The Big Picture
Landscape Recovery is for groups of farmers (or landowners) working together on projects of at least 500 connected hectares. Think “rewilding a whole valley” or “creating a wildlife corridor across several estates”. Payments are negotiated individually and can run for 20+ years.
Who it’s for:
- Large estates.
- Farmer clusters.
- Environmental NGOs partnering with landowners.
2026 timeline:
- Expression of interest – Closed 31 January 2026.
- Full application – Due 30 September 2026 (for successful EOIs).
- Contracts issued – March 2027.
If you missed the EOI window, keep an eye out for the next round (likely 2027). In the meantime, consider joining an existing group—many are still looking for more land to include.
3. Farming Investment Fund Guide: Cash for Kit
The Farming Investment Fund (FIF) is your go‑to source for grants to buy equipment, technology or infrastructure. It’s separate from ELM and focuses on improving productivity, animal health or resource efficiency.
3.1 What FIF Covers
FIF is split into several “themes”, each with its own budget and criteria.
Available in 2026:
| Theme | Grant Range | What It Covers |
|---|---|---|
| Improving Farm Productivity | £17,500 – £500,000 | Robotic equipment, solar PV, grain‑handling kit |
| Calf Housing for Health & Welfare | £15,000 – £500,000 | New/build‑upgrade calf housing (must meet specified standards) |
| Water Management | £35,000 – £500,000 | Irrigation reservoirs, drip‑irrigation systems, water‑metering |
| Slurry‑Storage | £25,000 – £500,000 | Covered stores, slurry‑separators, injection equipment |
Deadlines to watch:
- Improving Farm Productivity – Round 2 closed 10 July 2026; next round expected autumn 2026.
- Calf Housing – Full applications due 30 January 2026 (if you were invited).
- Water Management – Round 2 closed; next round likely 2027.
- Slurry‑Storage – Open until funds exhausted (apply early).
3.2 How to Apply for FIF
- Check the eligibility checker on the FIF gov.uk page. You’ll need your SBI and details of the item(s) you want to buy.
- Get a quote – At least one written quote from a supplier is mandatory; three are recommended.
- Fill out the online application – You’ll be asked to explain how the investment will improve productivity/health/efficiency.
- Wait for assessment – Typically 6–8 weeks.
- If approved, you’ll receive a grant‑funding agreement (GFA). Do not buy anything until you have signed the GFA. Buying early will make you ineligible.
- Purchase, install, claim – Once the kit is installed and paid for, submit your claim with invoices. The grant is paid retrospectively (usually within 30 days).
Common gotcha: The grant only covers a percentage of the cost (usually 40%). You need to fund the rest yourself (or via a loan). Make sure you have the cashflow to cover the upfront cost.
4. SFI Payments Explained: Your New Monthly Paycheck
SFI payments are designed to be predictable and regular—almost like a monthly salary. Here’s how they work in practice.
4.1 Payment Rates & Timing
- Payments are quarterly – You’ll receive money every three months, starting after your first year of delivery.
- Rates are fixed for 3 years – The payment per hectare (or per metre) won’t change during your agreement.
- You can stack actions – If you deliver both a flower‑rich margin (AHL1) and a winter‑bird‑food plot (AHL2) on the same land, you get both payments.
Example:
A 10‑ha field with:
- SAM1 (soil assessment) = £200 (one‑off)
- SAM2 (multi‑species ley) = £1,200/year
- AHL1 (6‑m flower margin around 1 km) = £450/year
Total annual SFI income from that field = £1,650 (plus the one‑off £200).
4.2 Record‑Keeping & Inspections
SFI agreements are subject to inspection by the RPA. You must keep:
- Maps showing where each action is delivered.
- Photos of the land before and after (especially for capital items).
- Records of any inputs used (e.g., seed mixes, fertiliser).
- Invoices for any bought‑in materials.
Inspection tip: Keep everything in a single folder (digital or paper). Label each document clearly with the SFI action code and date. Inspectors are less likely to query well‑organised evidence.
4.3 What Happens if You Break the Rules?
- Minor breach – You may be asked to rectify the issue within a set period.
- Major breach – Payments can be reduced or withheld.
- Serious breach – The agreement can be terminated and you may have to repay all previous payments.
Bottom line: Only commit to actions you’re confident you can deliver. It’s better to start small and add more later than to over‑promise and risk penalties.
5. Application Checklist: Don’t Miss a Step
Use this list to keep your grant applications on track.
✅ Before You Start
- [ ] Single Business Identifier (SBI) – Make sure yours is up to date with the RPA.
- [ ] Land‑parcel details – Check the Rural Payments service for accurate maps and parcel IDs.
- [ ] Bank details – The RPA needs your correct bank account information.
- [ ] Adviser contact – If you’re applying for Higher Tier CS or a large FIF grant, line up an adviser early.
✅ During Application
- [ ] Read the scheme rules – Download the latest handbook from gov.uk.
- [ ] Choose the right scheme – SFI for ongoing income, FIF for kit, CS for environmental projects.
- [ ] Gather evidence – Quotes, maps, photos, soil‑test results.
- [ ] Fill in every box – Incomplete applications are rejected automatically.
- [ ] Submit before the deadline – Allow time for technical glitches (the online portal can be slow on the last day).
✅ After Submission
- [ ] Save a copy – Print or PDF your completed application.
- [ ] Note your reference number – You’ll need it for any queries.
- [ ] Check your email – Approval/rejection letters are sent electronically.
- [ ] Sign and return – If approved, return the contract promptly.
- [ ] Start record‑keeping – Don’t wait until the inspection to organise your paperwork.
6. Common Mistakes to Avoid (and How to Dodge Them)
❌ Mistake 1: Applying for the Wrong Scheme
It’s easy to get excited about a high‑payment action (like AHL1’s £450/ha) only to realise your land isn’t suitable. Always check the eligibility criteria first. Use the RPA’s online “check if you can apply” tool before spending hours on an application.
❌ Mistake 2: Missing Deadlines
Grant windows are strict. Set a calendar reminder two weeks before the closing date. If you’re relying on an adviser, give them at least a month’s notice.
❌ Mistake 3: Under‑Budgeting
Remember that most grants only cover a percentage of the cost (typically 40%). You’ll need cash (or a loan) for the rest. Factor in VAT, delivery, installation and any professional fees.
❌ Mistake 4: Poor Record‑Keeping
“I’ll remember what I planted where” doesn’t cut it with inspectors. Take photos, label them, store them securely. A simple spreadsheet with parcel IDs, action codes and dates will save you headaches later.
❌ Mistake 5: Buying Before Approval
Never, ever purchase equipment or start work before you have a signed grant‑funding agreement. The RPA will not reimburse you for money spent before approval.
❌ Mistake 6: Ignoring the Small Print
Some schemes require you to maintain the funded item for a set period (e.g., 5 years for a slurry store). If you sell the farm before then, you may have to repay part of the grant. Read the terms carefully.
7. Resources & Links: Where to Go Next
Official Government Portals
- Rural Payments Agency – The main hub for SFI, Countryside Stewardship and Landscape Recovery.
- Farming Investment Fund – Application forms, guidance, eligibility checker.
- DEFRA Farming Blog – Plain‑English updates on policy changes.
- Agriculture and Horticulture Development Board (AHDB) – Sector‑specific advice and tools.
Tools & Calculators
- SFI Payment Calculator – Estimate your potential SFI income.
- FIF Eligibility Checker – Quick yes/no on whether you can apply.
- Countryside Stewardship Mid‑Tier Planner – Interactive tool to build your CS application.
Advisory Services
- Farm Advisory Service (FAS) – Free advice for Scottish farmers (similar services exist in England, Wales, NI).
- NFU – Member‑only helplines and template documents.
- Independent Advisers – Search for a qualified farm adviser near you.
Stay Updated
- Subscribe to the DEFRA farming newsletter – Direct to your inbox every fortnight.
- Follow @Ruralpay on Twitter – For urgent deadline reminders.
- Bookmark this page – We’ll update it as new schemes launch.
Final Thought: Start Small, Think Big
The new grant landscape is complex, but it’s also a huge opportunity. If you’ve never applied for a grant before, begin with one SFI action (like SAM1) to get familiar with the system. Once you’ve navigated the process once, the next application will feel much easier.
Remember: every farm is different. What works for your neighbour might not be right for you. Take the time to understand your own business’s needs, then pick the schemes that match them.
Good luck—and happy applying!
Published 26 February 2026 • Updated daily as new information becomes available.