NFU Conference: Actions slashed as Defra unveils ‘simpler, fairer’ SFI scheme
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Speaking at the annual National Farmers' Union Conference in Birmingham, the Defra Secretary committed to “supercharging” British farming with a £345 million funding package designed to boost everyday productivity while accelerating the adoption of cutting-edge technologies.
Focus on partnership and stability
Addressing delegates, Ms Reynolds stressed that the Government is “taking action to back farmers”, placing renewed emphasis on partnership, clarity and long-term stability.
Building on announcements made at the Oxford Farming Conference in January, she said the revised offer follows extensive engagement with the sector and responds directly to calls from farmers for a more workable and predictable system.
“I am determined to give British farming the foundation it needs to grow,” she said.
“We want farm businesses that are productive, profitable and resilient. We want to see more British food on more tables, here at home and around the world.
“And we want a countryside that is thriving, for wildlife, for communities, and for the families who have worked this land for generations.”
A ‘simpler and fairer’ SFI
The reformed SFI scheme is designed to be simpler, fairer and more stable, with a stronger focus on ensuring funding reaches small and medium-sized farms.
Key elements of the new offer include:
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71 actions, reduced from 102
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Annual agreement caps of £100,000
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Applications opening in June for small farms and those without a live Environmental Land Management (ELM) revenue agreement
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Small farms defined as three to 50 hectares, registered with the Rural Payments Agency as of January 1, 2026
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A second application window opening in September for all farmers, with further details to follow
The changes are intended to streamline the scheme while maintaining flexibility and retaining key environmental and productivity-focused actions.
Investment in productivity and innovation
Alongside the SFI reforms, Ms Reynolds announced substantial new investment to drive growth and resilience across the sector.
This includes:
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£70 million for the Farming Innovation Programme, building on a previous £21.5 million awarded to 15 innovation projects across England. These projects range from methane-reducing cattle feed to heatwave-resilient greenhouses, helping farms cut emissions while boosting productivity.
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£50 million for the Farming Equipment and Technology Fund, supporting investment in equipment to improve productivity, animal health and welfare, and slurry management, increasing efficiency and on-farm performance.
Industry response
The NFU welcomed the Secretary of State’s commitment to investment and partnership.
NFU President Tom Bradshaw said:
“It is encouraging to hear the Defra Secretary of State reaffirm her commitment to working in partnership with farmers and growers. Today’s announcement on investment in productivity demonstrates that she recognises the vital contribution our nation’s food producers make to the economy and to our national security.”
Commenting on the SFI reforms, he added that the scheme “appears to strike the right balance between simplifying the process and maintaining flexibility, while still retaining preferable actions for farmers and growers”.
“It’s good to see the recognition of the uplands by maintaining actions that support the much-loved landscapes in which they work, but we’ll need to work through the wider detail of the scheme.
“What is pleasing is that Defra has taken the NFU’s feedback on board in a number of areas where we were concerned about early plans for the new SFI.”
Tenant Farmers' Association chief executive George Dunn said the announcement should help dispel rumours and ease concerns among tenant farmers.
“While there will be fewer options than SFI 2024, the remaining 71 options in this year’s scheme should provide a broad scope of opportunity for individuals to participate,” he said.
“What has been proposed by Defra will provide sufficient headroom for hard-working, active farmers to take part in the scheme, whilst removing the incentive for non-active landowners to take an unreasonable share of the pot of available funding.”
Balancing simplicity and flexibility
The reformed SFI marks a significant shift in approach, with government aiming to balance administrative simplicity with on-farm flexibility. As further details emerge ahead of the June application window, farmers will be looking closely at how the revised scheme delivers on its promise of clarity, fairness and long-term stability.
With productivity, resilience and environmental delivery high on the agenda, the changes announced at this year’s NFU Conference signal a renewed focus on ensuring British farming is equipped to meet both economic and environmental challenges head on.
