The scheme is due to reopen in 2027, although Defra is reportedly exploring alternatives to a first-come, first-served approach. Meanwhile, nearly £300 million in Basic Payment Scheme and Greening support has been paid to farmers and crofters in Scotland since the beginning of September.

CPRE has called for housing targets in England to be set locally, arguing that the current approach places too much pressure on rural areas. Its analysis identifies enough brownfield land for more than 1.54 million homes. However, development in Lancashire faces a more fundamental constraint: a projected six-million-tonne shortfall in construction-grade sand, with no additional extraction sites currently allocated.

FOOD & FARMING

High demand for SFI Window 2
Window 2 of England’s Sustainable Farming Incentive (SFI) 2026 opened and closed less than six hours later on 22 September after demand exhausted the available funding. In total, £253 million was available because Defra transferred £3 million that hadn’t been used during Window 1 and added £20 million to respond to the warnings about high demand. Combined with the Prime Minister’s £50 million increase in August in response to the drought, this brings total funding for new SFI26 agreements across both windows to £310 million.

The pace at which the budget was used has left many farmers disappointed, particularly those who planned more complex agreements that take longer to enter into the system. The original Agricultural Transition Plan promised the SFI would be “a universal scheme open to all farmers” and “open and accessible to all farmers”. It also committed the government to phasing out the old support system in a “gradual, smooth and orderly way”. Yet many eligible farmers have been left unable to access the replacement scheme. This is difficult to reconcile with the principles of universality, accessibility, fairness and certainty on which the post-Common Agricultural Policy settlement was originally sold.

Defra received around 12,200 applications during Window 2, averaging about £20,700 each. More than 8,800 applicants had an existing Environmental Land Management agreement expiring by 28 February 2027, while over 1,100 did not hold an existing agreement. The top five actions were:

• 61% manage grassland with very low nutrient inputs
• 35% manage hedgerows
• 28% establish herbal leys
• 22% provide winter bird food on arable and horticultural land
• 21% avoid the use of insecticides on arable and permanent crops

The data shows higher uptake of livestock-focused actions in Window 1; for example, 25% of applications contained the haymaking supplement compared to 17% in Window 2. Arable-focused actions were more prominent in Window 2; for example, 21% of agreements included the action for “no use of insecticide on arable crops and permanent crops” compared to 10% in Window 1. This is likely because some Window 1 criteria targeted smaller farms.

The SFI26 applications will be assessed in submission order, and offers will be made only where eligibility checks are passed and sufficient funding remains. Started but not submitted applications normally cannot be completed. However, farmers who contacted the Rural Payments Agency before closure because they needed assisted digital support or experienced a technical problem, may qualify for an exception. If you were successful, you must accept your agreement offer within 30 calendar days. Defra has said it plans to reopen the scheme in 2027 and is exploring alternatives to the first-come, first-served approach.

Scotland: nearly £300 million paid out
More than £296 million in Basic Payment Scheme (BPS) and Greening support has been paid to farmers and crofters in Scotland since the beginning of September. By 11 September, payments had reached 81% of businesses expected to qualify, giving most recipients earlier certainty over a significant source of farm income. The payment window remains open until July 2027. Recipients of grants from the £21.4 million Future Farming Investment Scheme must provide evidence that they met the conditions of their award before their BPS and Greening applications can be considered. The deadline for submitting this evidence has been extended to 30 September 2026, so outstanding returns could delay associated support payments.

Red Tractor proposes cut to requirements
Red Tractor quality assurance is consulting on plans to reduce the number of beef and lamb assurance requirements by around one-third and dairy requirements by one-quarter. The proposals would consolidate overlapping requirements, remove unnecessarily prescriptive elements, and reorganise the standards to make them easier to understand and demonstrate during assessments. Red Tractor says the changes are intended to simplify compliance without weakening assurance.

Both schemes would adopt a more farm-specific approach to livestock health planning, based on an annual veterinary review of each farm’s priorities and an agreed 12-month action plan. The beef and lamb proposals also introduce requirements covering areas including extreme weather, feed safety, disease planning, nutrient management and housing. Dairy proposals include a new code of conduct on animal care and handling, alongside changes concerning cow comfort, environmental enrichment and foot-trimming competence. Farms in England certified under both schemes could benefit from greater alignment and less duplication. The consultation closes on 3 November 2026, with any final changes expected to take effect in 2027. Review the proposals and respond to the consultation here.

Push for more home-grown protein
UK farmers will play a key role in a £4.8 million international research initiative to reduce reliance on imported soy by increasing the production and use of home-grown protein crops. The five-year PROCEED project brings together organisations from across Europe and the UK to explore how crops such as peas, beans and forage legumes can become commercially viable alternatives in livestock feed supply chains. PROCEED will use 11 regional hubs to test whether home-grown protein crops can move beyond small-scale trials. A major focus within these hubs will be identifying supply-chain gaps and trialling approaches to create stronger links between growers, processors, feed manufacturers and livestock businesses.

The project highlights the wider benefits of legumes within arable rotations, echoing findings from the Savills companion cropping blog, which explored how intercropping legumes with cereals can harness legumes’ ability to fix nitrogen from the atmosphere to enrich the soil for cereal crops, while reducing the requirement for nitrogen fertiliser. For livestock producers, greater use of locally sourced protein could help reduce their exposure to volatile global markets, while for arable businesses, stronger demand for home-grown protein crops could improve the margin of a useful break crop.

POLICY

Vets can now diagnose Bluetongue
Private vets in England can now diagnose clear cases of bluetongue from clinical signs, without waiting for laboratory test results. Vets will report cases directly through a new online system, with the Animal and Plant Health Agency responsible for formal confirmation. Laboratory testing will still be required where the diagnosis is uncertain or another notifiable disease, including foot and mouth disease, cannot be ruled out. The change is intended to reduce delays as the number of suspected cases places increasing pressure on testing capacity.

Bluetongue remains notifiable, so livestock keepers must continue to report suspected cases immediately. Vaccination is the main way to protect susceptible livestock and must be discussed with a vet. Sheep and cattle farmers in England can also apply for a government-funded veterinary visit for each eligible herd or flock, which can include advice on bluetongue risks, prevention and vaccination. Defra has urged farmers to plan because the disease is likely to remain a threat in 2027.

Small food firms unaware of rule changes
Small and medium-sized food and feed businesses are being urged to prepare for forthcoming regulatory changes linked to the proposed UK-EU Sanitary and Phytosanitary (SPS) agreement. Concerns remain that many are largely unaware of the potential implications. Research by the Food Standards Agency found awareness among smaller firms is low, while many local authorities have done little preparatory work because they are uncertain about the agreement’s final shape.

The agreement, which should form a new strategic partnership with the EU on trade, is still being formed and is expected to come into force from mid-2027. SPS arrangements could affect a wide range of areas across the food and farming supply chain, including animal feed, pesticides, food ingredients, labelling, food safety and production standards. Businesses may need to review products, packaging, sourcing arrangements and manufacturing processes to ensure compliance with applicable EU requirements. While industry bodies have welcomed the prospect of reduced border checks and smoother trade, they continue to call for greater clarity and sufficient transition periods once a final agreement is reached.

Wales: food strategy group established
A group of food and farming experts has been appointed to help develop the National Food Strategy for Wales. Chaired by food and hospitality specialist Simon Wright, the group includes representatives from farming, horticulture, meat processing, retail, hospitality, public health, food safety, food poverty and environmental policy. Its work will be organised around four themes: health and wellbeing, food security, the economy and rural development, and the environment.

Three sub-groups will fast-track work on food in schools, expanding edible horticulture and strengthening the Welsh meat supply chain. These groups will seek practical measures that could be introduced before the strategy is completed, while the main group considers the wider food system from production and processing through to retail, health, education, public procurement and the circular economy. Businesses, communities and the public will also be invited to help shape the strategy.

The final strategy is expected to be presented to Welsh Ministers during 2027. The Welsh Government wants it to support producers, strengthen food security and supply-chain resilience, and retain more of the value generated by Welsh food within Wales. The sector is worth more than £28 billion and employs one in six workers in Wales. However, no dedicated strategy budget, statutory basis or detailed delivery targets have yet been announced, and ministers will decide which of the group’s recommendations to adopt.

ENVIRONMENT & NATURAL CAPITAL

Higher-than-usual rainfall needed
England needs around 120% of its average rainfall over the seven months to April for all areas to recover from drought. Almost three-quarters of the country remains in drought following an exceptionally dry spring and summer, with river flows, reservoirs and groundwater levels all needing to recover. Even under the most likely rainfall scenario, East Anglia is expected to remain in drought at the beginning of April 2027, while Devon and Cornwall would remain in fragile recovery.

The fallout from the dry weather continues across the farming sector. British potato growers could lose between £80 million and £169 million after drought and extreme heat reduced yields and crop quality, with industry forecasts suggesting yields could be around 11% below the five-year average. In Wales, farmers have also sought greater flexibility under manure-spreading rules after the dry summer disrupted grass growth, silage cutting and normal slurry applications, leaving some farms carrying unusually high volumes into autumn. The continuing effects underline the importance of water storage, irrigation and more flexible drought planning as businesses prepare for the 2027 growing season.

Wales: grants for soggy landscapes
New funding opportunities are supporting peatland restoration and water management projects, highlighting the growing role of peat soils in tackling climate and environmental challenges. In Wales, a Peatland Restoration Grant has been launched, offering between £10,000 and £250,000 for projects that enhance carbon storage, biodiversity, flood resilience and climate mitigation. Although peatlands cover just 4% of Wales, they store around 30% of the country’s land-based carbon. Restoring degraded peatland can help landscapes retain water, reducing risks associated with flooding, drought and wildfire, while also supporting habitat recovery. The grant application is open to private landowners, as well as public and voluntary organisations, with a deadline of 30 November 2026 and a supporting webinar taking place on 6 October. If you would like to discuss options for peatland, please contact our Natural Capital team.

PROPERTY & DEVELOPMENT

Sand shortage could affect house building
The last national Aggregate Minerals Survey found that permitted aggregate reserves in Great Britain had fallen by 46% between 2001 and 2023. Shortages of construction-grade sand and gravel could place additional pressure on housebuilding. For example, in Lancashire, planning authorities forecast a need of 11 million tonnes between 2025 and 2042, compared to five million tonnes of permitted reserves, leaving a six million tonne shortfall. No new extraction sites have been formally allocated to meet that requirement. Instead, quarry operators would need to bring forward individual planning applications for new sites or extensions to existing workings. Potential resources identified in Lancashire include around three million tonnes of sand and gravel near Preston and a further 500,000 tonnes at Preesall, although neither site is currently allocated for extraction. For more information, please contact Stuart Jeffries in our Minerals and Waste Management team.

Mayors should decide housing targets
CPRE has called for mayors and strategic authorities to set housing targets in England, arguing that the current national approach places disproportionate development pressure on rural and greenfield land. Its latest analysis identifies enough brownfield land in England for more than 1.54 million homes, including around 846,000 potential homes on sites that already have planning permission. CPRE argues that greater use of brownfield land could reduce pressure on the countryside and has called for a ‘brownfield first’ approach, targeted investment to unlock less viable sites, and separate targets for affordable and social housing. It also proposes shifting responsibility for setting housing numbers from central government to mayors and strategic authorities, so targets reflect assessed local need.

People’s Power projects rolled out
Great British Energy has opened applications for £30 million of funding to support community-led renewable energy projects across the UK, including solar, wind and hydro schemes. The funding is the first phase of up to £1 billion earmarked for community energy. A £20 million Community Fund will support organisations in England, Wales and Northern Ireland to develop and build community-owned energy assets. A further £5 million Partnerships Grant will support joint projects between England’s local authorities and community energy groups, while £1.8 million has been allocated to existing support schemes in Scotland. Projects receiving Community Fund support must provide communities with a defined legal and financial interest and retain a share of project benefits locally. For more information, contact Nick Green.

BUSINESS & economy

Abattoirs benefit from revised discount plan
More than 80 small and medium-sized abattoirs could benefit from enhanced financial support under revised Food Standards Agency (FSA) proposals to reform meat inspection charge discounts. The changes follow industry concerns that the original plans risked removing support from several smaller processors that play a vital role in local livestock supply chains, as covered in our June issue of Landscope. Under the revised model, the smallest abattoirs would continue to receive a 90% discount on eligible inspection charges, while support would taper more gradually as throughput increases. The proposals could bring 18 additional plants into the scheme and retain or improve support for a further 25 businesses that were expected to lose out under previous plans. The FSA believes the changes could reduce regulatory pressures on smaller operators and remove barriers to growth, although the proposals remain subject to approval.

OTHER RURAL NEWS

And finally… 500 tractors seek a new home
Most farmers dream of adding another tractor to the yard. For one collector, the challenge has been finding space for hundreds. Peter Green, a retired building surveyor from Essex, is selling more than 500 John Deere tractors and implements from what is believed to be one of the UK’s largest collections. Built up over 12 years, the collection once exceeded 900 models displayed throughout his home in glass-fronted cabinets. As you may have now realised, they are 1:16-scale model tractors.

The October sale includes rare American models, custom-built tractors and several unique models. The size and quality of the single sale is drawing interest both nationally and internationally, with some of the most sought-after pieces expected to achieve up to £500. Among the most valuable are a John Deere 8650 Kinze conversion, a John Deere 4520 V8 with twin rear wheels and a modern John Deere 9RX830.

However, Mr Green is not giving up the hobby altogether. Having run out of room, he plans to focus instead on smaller 1:32 scale John Deere models, of which he already owns around 450, alongside an expanding collection of Caterpillar machinery.

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