(1).jpg "Topical Issues Food and Farming Update")
October 2026
England & Wales
- The £253 million budget for SFI 2026 Window 2 was fully allocated in less than six hours, after applications opened at 10:00 on 22 September. Those who started an application but faced technical issues that prevented them from submitting may be able to continue their application after the Rural Payments Agency (RPA) investigates, provided they highlighted the issues before the window closed.
- Capital Grant agreements are being offered across the UK following the closure of the application window on 1 September. The full £225 million budget was allocated, with around 17,000 applications made. Approximately 55% of those were first-time applicants.
- Livestock farmers could face fewer Red Tractor assurance requirements under proposed changes to the scheme’s standards. The review would reduce requirements by 25% for dairy farmers and 33% for beef and sheep producers, in a bid by the assurance body to be more reflective of modern farming. Some new measures are expected to be introduced, including tighter nutrient management standards for farms in England.
- Temporary rule changes will give farmers in Wales until 15 November 2026 to spread slurry and other manures. This marks an additional one-month concession to reflect a difficult growing season, although slurry applications will still be subject to a limit of 30 cubic metres per hectare.
- Straw and hay prices are holding strong despite an improved national supply, as farmers start looking ahead to the winter season. Prices are subject to significant regional variation, with barley straw prices in mid-September ranging from £80/t in the north to £118/t in the south. High production costs, including fuel and labour, continue to sustain prices; however, autumn weather conditions will be a key factor in determining demand over the coming weeks.
Scotland
- The payment rates for the 2026 Basic Payment Scheme have been announced, and farmers have begun receiving their 2026 payments. The table below highlights the changes in payment rates between 2025 and 2026: