The latest Sustainable Farming Incentive (SFI) funding window attracted exceptional demand, with the available budget allocated within hours of opening. For farmers who missed out, now is the time to assess the financial impact, explore other opportunities and prepare for what comes next.
The second application window for SFI 2026 opened on 22 September but closed less than six hours later, after enough applications were received to allocate the available budget.
For those unable to secure funding, the immediate question is understandably: what next?
Missing out on anticipated income may require adjustments, but it also provides an opportunity to review the financial position of the farm and make sure future plans remain right for the business.
The first step is to establish what the anticipated SFI payments would have contributed to your business.
For many farms, support payments remain an important part of overall income. In the 2025 accounts we have seen, subsidies represented an average of approximately 30% of total income. Although this varies considerably between businesses, it demonstrates why agricultural support deserves careful consideration within financial planning.
If anticipated SFI payments were included in your budgets, revisit those forecasts and identify what difference their absence makes. Consider whether planned expenditure was reliant on the funding, whether costs can be adjusted and what this means for working capital.
Cashflow planning is particularly important in agriculture, where expenditure and income can fall at different points in the year. Reviewing forecasts can help identify potential pressure points early and provide time to make informed decisions.
It is also worth considering significant payments and planned purchases. Could expenditure be phased? Do investment plans need to change? Are there ways to strengthen working capital without affecting the productive capacity of the farm?
A clear cashflow forecast is not simply about managing financial pressure. It can help support better decisions about where and when to invest.
Missing out on SFI26 does not necessarily mean environmental and land management plans need to be put on hold.
Depending on the business, land and proposed activity, other funding opportunities may be worth exploring. Any agreement should, however, be assessed in the context of the farm as a whole.
Consider how proposed land management activities could affect cropping decisions, labour requirements and the productive use of land. The objective should be to identify opportunities that meet environmental aims while also supporting the commercial priorities of the business.
It is also important to keep future SFI opportunities on the radar. Rather than waiting for the next application window, use the time now to consider which actions may be appropriate for your farm and gather the information needed to make an informed decision. Preparing early can put farmers in a stronger position when new opportunities become available.
If SFI income was anticipated to support machinery, infrastructure or environmental improvements, now is a sensible time to revisit those plans.
Some investments will remain worthwhile, particularly those that can improve productivity, reduce costs or support the long-term performance of the farm. Others may need to be delayed, phased or reconsidered.
The important question is whether the investment still makes financial sense. Consider the potential return, its effect on cashflow and the wider benefit to the farming operation.
Tax should also form part of these discussions. The availability of relevant reliefs and the timing of qualifying expenditure can influence the overall financial implications of an investment.
This wider review can also be used to consider where else the business could become more resilient. That might include assessing the profitability of individual enterprises, improving operational efficiency, reducing unnecessary costs, considering diversification or looking at whether existing land, buildings and other assets could work harder for the business.
The aim is not to make significant changes simply because SFI funding was unavailable. Instead, it is about using the latest development as a prompt to make sure resources are being directed towards areas that support the farm’s priorities.
Mark Chatterton, Head of Agriculture at Kinbrook Group’s Duncan & Toplis, says:
“Support payments remain an important part of farm income, so it is understandable that farmers will be disappointed if they were unable to secure funding in this round.
“However, I would encourage businesses to use this as an opportunity to review their plans. Understand what the funding would have contributed, revisit your cashflow forecasts and consider what other opportunities may be available.
“Good financial planning can help you make informed decisions about investment and the future direction of the farm, while putting the business in a stronger position to respond to future funding opportunities.”
At Duncan & Toplis, our agriculture team works closely with farming businesses and families to support financial planning, cashflow management, tax and investment decisions and longer-term business planning.
If you missed out on SFI funding and would like to discuss your next steps, talk to Mark Chatterton or contact a member of the Duncan & Toplis agriculture team.
