Farmers who missed out on the latest round of the Sustainable Farming Incentive (SFI) should explore other opportunities and prepare for what comes next. That’s according to rural accountants at Kinbrook Group’s Old Mill and Duncan & Toplis.

“Many farmers are rightly disappointed that the second application window for SFI 2026 closed less than six hours after opening, leaving them questioning what to do next,” says Willem Puddy, Head of Rural at Old Mill. “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. Consider whether planned expenditure was reliant on the funding, whether costs can be adjusted, and what this means for working capital.”

Important income

For many farms, support payments are an important part of overall income. Clients’ 2025 accounts show they represented an average of around 30% of total business income. But even without these payments, missing out on SFI26 does not necessarily mean environmental and land management plans need to be put on hold, says Mr Puddy. “There could still be other support available and, dependent on your proposed activities, future opportunities that could be explored.”

It is also important to keep future SFI opportunities on the radar. Producers can spend time now considering which actions may be appropriate for their farm, and gathering information needed to make informed decisions. “Preparing early can put farmers in a stronger position when new opportunities become available.”

Now could also be a good time to review investment and wider business plans, suggests Mark Chatterton, head of agriculture at Duncan & Toplis. “Some investments will remain worthwhile, particularly those that can improve productivity, reduce costs or support the long-term performance of the farm. But it could make sense for others to be delayed, phased or reconsidered,” he explains.

Wider benefits

“The important question is whether the investment still makes financial sense. Consider potential returns, cashflow and the wider benefit to the farming operation.”

This wider review might consider how the business could become more resilient. That should 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,” says Mr Chatterton. “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.”

• For more information visit www.om.uk or www.duncantoplis.co.uk