SFI 2026 Update

We finally have some useful information on SFI 2026 applications.   As expected, there are a range of changes, and there will be two application windows as previously announced.   

The first application round will open in June 2026 and remain open for around 2 months (although it will close sooner if demand is high).  This round will be open to farms under 50ha, AND farms of any size that do not currently have an environmental land management revenue agreement.

The second application round will open in September 2026 and will be open to all farms that are not eligible for round 1.   There will be no fixed closing date, the window will close when the pot is spent. 

The key changes for the 2026 scheme include (but not limited to): 

• Maximum agreement value of £100,000 per year 

• Each farm business can only have one 2026 SFI agreement 

• Farmers will no longer be able to increase rotational options at renewal above the year 1 level 

• AHW7 Enhanced Overwinter Stubble will be limited to 25% of the total agricultural area 

• Moorland grazing & shepherding rates have increased

• CSAM3 Herbal Ley rate will decrease from £382/ha to £224/ha for 2026 agreements 

• CAHL2 Winter bird food rate will decrease from £853/ha to £648/ha for 2026 agreements

• CNUM3 Legume Fallow rate will decrease from £593/ha to £532/ha for 2026 agreements 

• CIPM1 Assess Integrated Pest Management & Produce a plan has been removed as an option

• CSAM1 Assess soil and produce soil management plan has been removed as an option 

• CNUM1 Nutrient Management Review has been removed as an option 

• CHRW1 Assess and record hedgerow condition has been removed as an option

• CHRW3 Maintain or establish hedgerow trees has been removed as an option 

• Options for buffering ponds and trees have been removed 

• AHW1 Bumblebird mix has been removed 

• AHW12 Management of woodland edges on arable land has been removed 

There are some other small changes but the above list covers the majority. 

This updated guidance is very welcome and allows us to start planning applications with you ahead of the window opening.   We will be in touch with you individually in the coming weeks to start planning your 2026 applications, but please don't hesitate to get in touch if you have any queries in the meantime. 

FETF 2026 Guidance Released

The Farming Equipment and Technology Fund (FETF) 2026 will open for applications on 17th March 2026, with applications closing at midday on 28 April 2026. This fund provides grant support for farmers investing in equipment to improve productivity, slurry management and animal health and welfare and is broadly similar to the previous rounds of the FETF scheme, with some small changes.   

This is the last time this scheme will be available in its current format, with a restructure of schemes due for 2027.   

Farmers will be able to apply for grants of between £1,000 and £25,000 per funding theme detailed below. This represents a competitive opportunity to secure up to 50% of the RPA-determined cost of an item.

1. Productivity (up to £25,000) 

2. Slurry Management (up to £25,000)

3. Animal Health & Welfare (up to £25,000)

   
   

The key changes published for this year are: 

• Scoring uplifts have been removed 

• Fixed Sheep Handling Systems have been removed as an option 

• Handheld digital Brix refractometers for colostrum testing have been added as an option 

• Water heaters have been added as an option 

• Autonomous grain monitoring robots have been added as an option

• Scoring has changed on some items

Where can I find out more on FETF?

As this scheme is competitive, it is important to ensure your application scores highly to improve your chances of success.   Our team are always happy to answer your questions. Get in touch today, in order to begin work on your application!

Autumn Update

Welcome to our Autumn Update! In this issue:

• Budget 2025

• Forage Stocks

• EUDR Regulations Postponed Again

• Straights Market

• Milk Price and Spring Caps

• Cashflow & Budgeting

• Fertiliser Buying - Spring 26

• Trainee Agricultural Consultant Opportunity

Budget 2025

The long-awaited Budget is finally here, and whilst there is a small reprieve for the farming sector in that 100% agricultural property relief threshold will be transferable between spouses, there isn’t much else on our side.

For those of you running your businesses through a Limited Company, there will be a 2% increase in tax on dividends from April 2026, so it’s important to review salary/dividend structure ahead of this to ensure you are operating as tax efficiently as possible. In some circumstances it may be that a Limited Company is no longer the best structure, but this needs detailed review on a case-by-case basis.  There also will be a 2% tax increase on income from savings and property from April 2027.

Perhaps the factor adding most strain to farming business within this budget is the significant increase to National minimum wage again this year.  This increase doesn’t just impact staff on the minimum wage, but since the abolition of the AWB, many farms use the minimum wage increase as an indicator for a fair pay increase for their staff.  More importantly, staff tend to use this as an indicator of the pay increase they expect!

Minimum wage for over 21’s will increase by 4.1% from 1^st April, and the minimum wages for 18- to 20-year-olds will increase by 8.5%.

Forage Stocks

The late flush of grass certainly helped to build forage stocks on a lot of farms and has left us in a much more comfortable position for the Winter. However, it’s really important to get these later cuts tested before you rely on them too heavily as we have seen several clamps which are unfortunately unfeedable due to poor fermentation.  This was primarily due to very high protein levels and very low sugar levels.  It’s really important to review your forage budget now to understand if you are likely to face any gap in forage stocks. When calculating your forage stock’s, it’s important to adjust for dry matter as we are generally seeing much drier grass this year in the earlier cuts but much wetter grass in the later cuts, and both can swing your forage budget quite significantly.

As always, we would be very pleased to assist with forage budgeting and sampling, please get in touch with your usual consultant or call the office on 01454 614624.

EUDR Regulations Postponed Again

The European Parliament voted to delay and simplify the EU deforestation regulation (EUDR) rules that were due to come into effect on 1^st January 26. The delay had been speculated for the last few months but was confirmed on 25^th November, this is the second time that the introduction of EUDR has been postponed.

The new proposal, scheduled to come into effect on 1^st January 2027, will include a number of simplified measures that shift the focus of reporting to the operators that place the products on the market, rather than the retailers and manufacturers.

Hopefully this will ease paperwork burdens on farmers and feed manufacturers.

This delay means there will be no additional charges for credits or farmers purchasing Soya from 1^st January 2026. The effect of this vote on protein prices in particular are yet to be determined, although it is possible with the rumours of the vote being in circulation for several weeks, the effect has already been priced in!

Straights Market

The feed markets remain sensitive to global freight and weather, and timing of China entering the market!  Soya pricing has softened slightly but remains high and volatile. Rape is offering comparatively strong value into early Spring. Cereal prices remain broadly steady, if continuing to drop slightly. Good news if you are buying cereals not so great if you are trying to sell!

Overall, the markets are not moving in a straight line and are becoming ever more complex.  It would be sensible to partially cover for now certainly through to the end of the Winter into the Spring.

Milk Price and Spring Caps

Milk prices have obviously taken a significant hit and unfortunately things are likely to get slightly worse before they get better.

For any of you supplying processors operating Springtime volume limits, particularly the Muller model which is the most extreme so far, now is the time to review your forecasts and come up with a plan. For many farms we are seeing we are going to have to dry off a significant number of cows early, send on barren cows early, and potentially sell some in calf Heifers.  Certainly, on the Muller scheme we cannot afford to produce more than 102% of last year, and there is no point in producing that milk and pouring it down the drain to stay under that limit as you have then incurred the cost. Early planning will help to ensure that we keep the costs as low as possible and only produce what we are allowed to sell. If you need any assistance with this planning, please don’t hesitate to get in contact with your usual consultant.

As we get nearer to the Spring, we will have a daily monitor tool available to help you ensure that you don’t over produce, please get in contact with us if you would like to use this.

Cashflow and Budgeting

With output prices falling for much of the Industry, it is more than important than ever to closely manage cashflow and have robust budgets in place to understand where your business is going and allow close monitoring. If your budgets show that cash is going to become tight, we strongly suggest speaking to the bank as quickly as possible - they really don’t like hearing from you once you have got into a difficult position, much better to have the conversation up front early.  Likewise, with suppliers, if you are going to run behind on payment terms don’t ignore them, speak to them and explain the situation and the majority of suppliers will be very accommodating.

It is also very important to understand your financial performance compared to other similar farms. A cost production analysis will quickly highlight any areas that are worth extra focus from you to potentially trim costs, which will be very important in the coming 12 months. We would be very happy to pull your data into our database and provide a comparison against similar farms, and if you already use our farm secretary service we will have this data available already, so it is well worth looking at.

Fertiliser Spring 2026

The Agricultural Industries Confederation has issued a warning to farmers to get orders in for Spring fertiliser requirements as soon as possible and be prepared to take delivery on farm much earlier than usual. They are warning that geopolitical pressures, EU tariffs, and logistical bottle necks can all combine to disrupt supply if orders are left too late.

Trainee Agricultural Consultant Opportunity

We are currently looking for a Trainee Agricultural Consultant to support our team across a range of farming businesses.   The role will be based out of our office near Bristol, with regular travel across client farms in the South West.

This is a full-time, permanent position, working alongside senior consultants across our full range of services. The role is built for someone who learns best by doing – from measuring silage clamps to analysing data, and developing into an independent consultant over time. 

No formal qualifications Required – we will provide all the training and support needed. What matters most is enthusiasm, curiosity, and a good work ethic!  Good IT skills and a full driving license are essential.  

If you know of someone who might be interested, please get them to visit our website at www.kellyfarmconsulting.com/jobs

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 Sam Kelly

07777 696080

sam@kellyfarmconsulting.com

Charlie Davies

07904 601104

charlie@kellyfarmconsulting.com

 Office 01454 614624

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