ELMS funding for 2026

Secretary of State Emma Reynolds MP announced more details today at the National Farmers Union conference on the agri-environmental funding available for 2026. The main headline information is on the Sustainable Farming Incentive which is summarised below.

Eligibility and overall information

• Small Farms defined as holdings of three to 50 ha registered with the Rural Payments Agency as of January 2026
• Agreements capped at £100,000 per year
• Management payment will be removed for new agreements

Actions and payments

• 71 actions available to apply for (down from 102 actions from SFI EO)
• Farmers will not be able to add more land under actions than they had in year 1.
• Actions that were previously listed as running for 5 years now will last for 3 years.
• Base and supplementary actions must be applied together part of the same agreement.
• The June SFI application window will have a separate budget to the September window, regular updates will be provided to see how much of the funding remains. In order to ensure that applications are successful early applications are encouraged.
• Payment rates are being reduced for three actions – CSAM3 – Herbal Leys, CAHL2 – Winter Bird food and CNUM3 – Legume fallow.
• AHW7: Enhanced overwinter stubble will be added to the actions with the 25% land cap.

Expected actions with 25% land cap for 2026 are:

• CIPM2: Flower-rich grass margins, blocks, or in-field strips
• CAHL1: Pollen and nectar flower mix
• CAHL2: Winter bird food on arable and horticultural land
• CAHL3: Grassy field corners or blocks
• CIGL1: Take improved grassland field corners or blocks out of management
• CIGL2: Winter bird food on improved grassland
• WBD3: In-field grass strips
• AHW1: Bumblebird mix
• AHW9: Unharvested cereal headland
• AHW11: Cultivated areas for arable plants
• AHW7: Enhanced overwinter stubble

Existing agreements will continue under their current terms, reduced actions and payment rates will only apply to new agreements.

As of yet there are no details for the CS capital grant scheme but we expect the capital items and category budgets will be similar to the summer 2025 application.

If you would like more information please get in touch with our team to discuss on advice@wilsonwraight.co.uk or 01284 700727.