(1).jpg "Topical Issues Food and Farming Update")
August 2026
England & Wales
- Applications for the 2026 Capital Grants offer opened on 30 July. As anticipated, demand has been very high, with 75% of the £225 million budget allocated within the first 48 hours.
- The first round of the 2026 Sustainable Farming Incentive (SFI) offer opened at the end of June to small farms and those without an existing environmental revenue scheme. More than three-quarters of the £60 million budget was allocated within the first two weeks of opening.
- The second SFI application window is due to open in September. The RPA has confirmed that new IT software should enable farmers with Countryside Stewardship agreements ending on 31 December 2026 to draft replacement SFI applications when the next SFI window opens. For support regarding an SFI application, please contact your local Food and Farming consultant.
- Countryside Stewardship Higher Tier (CSHT) applications will no longer be invitation-only, with farmers able to submit an Expression of Interest (EIO) form. The government has also announced the introduction of single-focus agreements, allowing applicants to access priority actions such as species-rich grassland without the need for a full CSHT agreement. EIO forms can now be submitted for these single-focus agreements.
- Despite a challenging harvest year, farm profits in 2025 increased by 16% on the previous year to £8.42 billion, according to Defra’s estimated Total Income from Farming (TIFF). While the arable sector struggled with a 10% decrease in cereal output combined with low grain prices, livestock farmers capitalised on lower feed costs and strong prices, driving a £1.3 billion increase in livestock output.
Scotland
- The Scottish Government has announced a £2 million support scheme for independent pig producers to help farms facing severe financial pressure due to falling pig prices. The funding is aimed at producers most at risk, with eligible farmers able to claim support based on the gap between the price they receive and 85% of the UK Standard Pig Price.
- A wildfire in the Cairngorms affected around six square kilometres and took 12 days to bring under control, highlighting the impact of prolonged dry weather in rural areas. Beyond the immediate environmental damage, such fires can have significant implications for farming businesses, including the loss of grazing, damage to fencing and infrastructure, reduced forage availability and disruption to livestock management.
- The deadline for the Future Farming Investment Scheme (FFIS) 2025 grant recipients has been extended to 30 September 2026, providing additional time to complete and submit eligible capital investment claims.