Ellice Hahne (FCG Midwest)
Following the NFU conference yesterday, Defra released some updates on FETF, SFI and Capital grants for 2026 – read below for the key points of the announcement on each of these!
Farming Equipment and Technology Fund (FETF):
The application window for the FETF grant will be open from 17th of March to midday on 28th of April 2026. As in previous years, the grant will pay for items to improve animal health and welfare, productivity, and slurry management on farms, paying 40-50% of item costs up to a set value for each item. While some minor changes have been made, like adding or removing some items and scrapping the score uplift for vet endorsement, the concept of the grant remains the same.
This will be the last round of the FETF in its current form.
You can find the guidance here: https://www.gov.uk/government/publications/farming-equipment-and-technology-fund-fetf-2026
Sustainable Farming Incentive (SFI):
The SFI will reopen in June for small farms (3-50 ha) and those with no existing agreement (this includes SFI, Mid Tier, Higher Tier and HLS agreements), and in September for all other farms. There will now be a £100,000 yearly payment cap and agreements will be limited to one agreement per business.
Some options have been removed from the list of SFI options, including all management plans, while other option payment rates have reduced – for example SAM3 (herbal leys) dropping from £382/ha to £224/ha. Some moorland option payment rates have increased.
Another notable change is that you will not be able to increase rotational options beyond what was applied for in year 1 anymore, however there will still be more flexibility on the areas than there was in the Mid Tier, as rotational option areas can vary year on year so long as they do not exceed the area applied for in year 1.
There will be a fixed budget for each application window, meaning that while the RPA expect them to be open for about 2 months, they may close beforehand if the budget is fully allocated. This means that you should get ready ahead of time so that your application can be submitted as soon as possible when the window your farm falls into opens.
You can find more information and the list of available SFI actions here: https://defrafarming.blog.gov.uk/2026/02/24/sfi26-details-definitions-and-what-to-expect/
Capital Grants:
The announcement on capital grants is still lacking detail, but we know grants will reopen in July with an allocated budget of £225 million (up from £150 million last year). As last year, the application window will close when the budget is allocated so applicants will have to strike fast.
It is essential that you prepare for capital grants ahead of time so that you are ready to go when the application window opens, this includes requesting catchment sensitive endorsement where necessary!
I wrote an article last month on how you can start preparing now for grants opening soon, read more about it here: https://www.fcgagric.com/2026/02/03/preparing-for-when-grant-schemes-reopen/
If you would like advice or help with your grant application, please contact Ellice at ellicehahne@fcgagric.com or your local FCG Office.