NFU calls for £1bn SFI27 budget to meet farmer demand

11 November 2026

| 7 minute read

The NFU has said a budget of around £1 billion will be needed to meet demand for SFI27 and ensure farmers can continue work supporting the government’s environmental targets.

What you need to know

  • NFU analysis shows SFI27 needs more than £1 billion, with £960 million released from existing schemes available to be reinvested.
  • Around 48,000 farmers could seek an SFI27 agreement, requiring an early opening and clear long-term plan.
  • UK agricultural support was just 0.2% of GDP from 2023 to 2025, around half the OECD average.

NFU analysis suggests a budget of around £1 billion is needed for SFI27 to meet expected farmer demand and fund the environmental work required to support the government’s legally binding targets.

Around £960 million in annual agri-environment funding is expected to be freed up from expired or expiring scheme agreements. The NFU is calling on Defra to recycle this money into SFI27.

The NFU’s analysis indicates that 48,000 farmers are eligible to apply. This includes farmers whose SFI23, expanded SFI, Countryside Stewardship and Higher Level Stewardship agreements are due to expire by and in 2027, as well as those who were unsuccessful in securing an SFI26 agreement.

Demand could be even higher, with strong appetite already demonstrated for SFI26 and likely to extend beyond those with expiring agreements or unsuccessful SFI26 applications.

The NFU says recycling this estimated £960 million into SFI27 would enable farmers to continue the environmental work they have delivered on behalf of the government and the public for many years.

“Defra must honour its side of the partnership with farmers by reinvesting that money in SFI27 and ensuring its budget matches demand. The ball is now firmly in Defra’s court.”

NFU Vice-president Robyn Munt

Defra must honour its side of the partnership

NFU Vice-president Robyn Munt said: “Farmers have shown in their droves that they want to take part in agri-environment schemes. The experience of SFI26 left no doubt about the strength of that demand.

“For years, the government has contracted farmers to deliver the environmental work needed to underpin its legally binding targets. Farmers have committed land, time and resources to restoring hedgerows, creating buffer strips and improving soils all while continuing to produce food.

“As existing agri-environment schemes come to an end and funding is freed up, Defra must honour its side of the partnership with farmers by reinvesting that money in SFI27 and ensuring its budget matches demand.

“It should open the scheme in early 2027 and ensure the wider ELMs (Environmental Land Management schemes) are fully functioning, alongside publishing a clear ELMs strategy which would give farmers the certainty to plan and invest.

“When farmers invest, the benefits reach far beyond the farm gate, strengthening environmental delivery, domestic food resilience and rural communities across the country.

“The ball is now firmly in Defra’s court.”

NFU key asks on SFI27

  • Provide an SFI27 budget that matches farmers’ ambition to deliver for the environment. The NFU estimates that a budget of more than £1bn will be required.
  • Open SFI27 in early 2027, allowing agreements to begin from 1 April 2027. Farmers whose existing agreements are expiring should be prioritised to prevent a break in environmental work.
  • Allocate funding on a £/hectare basis to give as many farmers as possible access to the schemes, provided payment rates remain financially viable and properly reward farmers for the work involved.
  • Urgently address the lack of access for common land to SFI and Countryside Stewardship Higher Tier.
  • Publish a plan for ELMs for the rest of this Parliament, setting out scheme opening dates and transparent budget information so farm businesses can plan ahead with confidence.

The NFU’s key asks for SFI27 have been informed by NFU member feedback through two SFI surveys on SFI26 experiences and the approach to application windows.

“When farmers invest, the benefits reach far beyond the farm gate, strengthening environmental delivery, domestic food resilience and rural communities across the country.”

Robyn Munt

Farmers need stable, long-term support

The NFU's calls follow new OECD figures, which show that the UK invests significantly less in agriculture than other economies.

Support amounted to just 0.2% of GDP between 2023 and 2025, around half the OECD average.

The OECD has also called for UK farmers to be given greater certainty through stable, long-term support schemes. It said clear, multi-year funding would help farmers plan how they use their land and invest in their businesses, pointing to uncertainty over future environmental payments and recent problems with the rollout of schemes in England.

Robyn continued: “The OECD’s findings underline that creating the right conditions for British farming to succeed is not simply an agricultural priority, but a national resilience imperative. A stable and predictable agricultural policy would give farm businesses the confidence to plan for the long term, withstand global shocks, produce the nation’s food and continue delivering for the environment.

“A properly funded SFI27 within a fully functioning environmental scheme offer, backed by a clear long-term plan, is central to providing that certainty and building a secure, resilient food system.

“British farmers are ready to play their part. Defra must now give them the tools and confidence to do so.”

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This page was first published on 11 November 2026.

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