Navigating the complexity of environmental schemes across the UK demands careful consideration to identify the most suitable options for each individual farm.

To guide us through these challenges, we’re joined by Agrii’s Amy Watkins, Sustainability and Environmental Services Manager; Liam Wink, Grass and Forage Specialist; and Jenny Douglas, an independent advisor on Scottish subsidies.

Podcast Summary:

• England, Scotland and Wales are all moving away from BPS at different speeds, making environmental schemes increasingly vital for farm income.
• Scotland maintains full BPS for now but with tighter compliance rules, particularly around EFAs, margins and seed mix requirements.
• England’s SFI reopens this year with fewer actions, one agreement per farm and a £100k annual cap, so early preparation is essential.
• Wales’ new Sustainable Farming Scheme is replacing a significant BPS reduction, with many upland farms choosing it for better income fit.
• Additional funding options remain available across the UK - including grants and carbon‑credit opportunities - although competitiveness and long‑term commitments vary.

You can find details of your local Agrii agronomist and environmental specialist at agrii.co.uk/contact.

Environmental schemes in 2026: what’s changing and what to focus on

Environmental schemes are now a routine part of how farm businesses generate income. With the Basic Payment Scheme reducing or removed, support is increasingly linked to actions on farm.

The detail varies across England, Scotland and Wales, but the overall direction is similar. Support is still available, but it comes with clearer requirements and needs more planning.

This article draws out the key points from the latest Tramlines discussion and what they mean in practice.

A changing role for support payments

For many years, BPS provided a degree of stability. It helped balance difficult seasons and supported overall cashflow.

That position has changed.

• Payments are now linked to specific actions
• Requirements are more detailed
• Compliance is more closely checked

For most farms, these schemes now need to be built into the business rather than treated as an additional income stream.

England: SFI returning with tighter structure

The Sustainable Farming Incentive is reopening, with fewer options but clearer boundaries.

What’s different

• Around 70 actions available, reduced from previous schemes
• A cap of £100,000 per business
• One agreement per farm
• Defined application windows

This places more emphasis on getting the application right from the outset.

Where to start

Before applications open, it is worth taking time to:

• Check land maps are accurate
• Review any existing agreements
• Identify actions that fit with your rotation and system

With only one agreement per business, changes later are limited. It is worth making sure the agreement fits both the farming system and the wider business before applying.

Biodiversity Net Gain: a longer-term option

Biodiversity Net Gain is becoming more relevant where development is taking place.

Developers are required to replace what is lost and add an additional 10% in biodiversity value. This creates an opportunity for landowners to provide that gain.

It can work well in the right situation, but it requires careful thought.

• Typically a 30-year commitment
• Long-term change in land use
• Best suited where it fits with business direction

For some businesses, particularly where there is a change in scale or succession, it can provide a more predictable income.

Scotland: support remains, but expectations are increasing

Scotland has retained more of its direct support, but requirements are tightening.

What’s happening now

• BPS still forms a significant part of income
• A growing proportion is linked to environmental actions
• Compliance rules are becoming more specific

Practical changes to be aware of

• Field margins must now be at least 3 metres wide rather than 2 metres
• Specific seed mixtures are required for eligibility
• Inspections are placing greater emphasis on evidence

In practice, many of the actions are familiar, but there is less room for inaccuracy.

Getting the detail right on farm

For many farms, compliance does not require a change in system. It is often about doing what you already do, but being more precise.

Example: herb and legume-rich pastures

To meet requirements, mixtures need to include at least three flowering species, with at least one legume.

In practical terms, including three clover species within a mixture is often enough to meet the requirement without changing the overall reseed approach.

Where farms tend to run into difficulty is in the detail:

• Differences in species within a mix
• Substitutions that fall outside the rules
• Missing or incomplete records

Inspectors will often ask to see seed labels or specifications. Having that information available makes the process more straightforward.

Wales: transition now underway

Wales is now moving further into the transition away from BPS.

What to expect

• A phased reduction in BPS over time
• Significant reductions already in place
• The introduction of the Sustainable Farming Scheme

Farmers must choose between remaining BPS payments, which are reducing, or entering SFS agreements.

For many, particularly in upland and livestock systems, SFS is already proving to be a more practical option financially.

Grant funding: still worth planning for

Alongside scheme payments, grant funding continues to support investment.

England

• Farming Equipment and Technology Fund (FETF)
• Capital Grants, which are competitive and have limited application windows

Based on last year, demand is likely to exceed available funding, so preparation and clarity in applications will make a difference.

Scotland

• Investment schemes expected to continue
• Support for carbon audits and soil analysis has been widely used

Preparation tends to be the deciding factor. This includes gathering supporting evidence early, ensuring approvals are in place where required and allowing time for applications.

Carbon: an additional income stream

Carbon schemes are becoming more widely available and can provide an additional income stream alongside existing support.

They tend to suit:

• Arable rotations
• Systems where improvements can be measured over time

They are less suited to systems with frequent ploughing or predominantly permanent grassland.

For most businesses, they sit alongside other schemes rather than replacing them.

What to focus on now

Across all regions, the message is consistent.

In the short term

• Speak to your adviser early
• Understand what is required for your farm
• Check maps, records and agreements are up to date
• Review seed mixtures where they link to compliance

Looking ahead

• Plan over a 5–10 year period, not just year to year
• Consider how schemes align with business direction
• Make small adjustments now to avoid restrictions later
  
  

Taking a measured approach

There is more detail within these schemes than before, and that needs to be managed carefully.

In practice, many farms are already doing much of what is required.

The difference now is:

• Being clear on the rules
• Recording what is done
• Making small, accurate adjustments

That is where early planning and practical advice tend to have the greatest value.