There is a common assumption among farmers entering the Sustainable Farming Incentive (SFI) that it is one or the other — that taking on SFI actions somehow limits what else they can apply for.
It does not. Capital Grants can run alongside SFI, Countryside Stewardship Higher Tier, and Environmental Stewardship Higher Level Stewardship at the same time. Used properly, they cover different things: SFI funds ongoing management actions carried out across the farm year; Capital Grants pay for specific physical works with a defined cost. They are complementary by design.
The question is not whether you can stack them. The question is how to do it without falling foul of the double-funding rules — and whether the planning work is in place to make a good application for both.
What Stacking Actually Means
In the context of farming grants, "stacking" means having more than one scheme running on the same land at the same time, with each scheme paying for something different.
The RPA permits this. The rules confirm that Capital Grants can be used as standalone funding or alongside:
| Scheme | Compatible with Capital Grants? |
|---|---|
| Sustainable Farming Incentive (SFI) | Yes |
| Countryside Stewardship Higher Tier | Yes |
| CS Higher Tier agreements starting from 2025 | Yes |
| Environmental Stewardship Higher Level Stewardship (ES HLS) | Yes |
The logic is straightforward. Your SFI agreement pays you to carry out management actions — things like establishing cover crops, managing hedgerows, or applying integrated pest management. Capital Grants pay for one-off capital works — fencing a watercourse, installing a livestock drinking trough, restoring a hedgerow structure. Different activities, different payment streams.
The Double-Funding Rule You Cannot Get Around
Stacking is permitted. Double-funding is not.
Double-funding means using public money from two different sources to pay for the same thing. The RPA will run checks on this, and they are explicit in the guidance that Capital Grants cannot be used to fund works that are already covered by another public grant scheme, a legally binding obligation, or any other public funding source.
In practice, that means:
- If your SFI agreement already pays you to manage a hedgerow, you cannot use Capital Grants to pay for works on that same hedgerow that are part of the same management activity.
- If you have Countryside Stewardship capital funding for fencing, you cannot also claim Capital Grants for the same fence.
- If a planning condition or legal obligation requires you to carry out certain works, those works are not eligible for Capital Grants.
The distinction that matters is between what each scheme is paying for. SFI actions are revenue payments for ongoing management. Capital Grants are one-off payments for specific infrastructure or physical improvement works. Where there is a genuine separation — different activities, different costs, different parcels where relevant — stacking is legitimate.
If there is any doubt, the safer approach is to document clearly how the activities differ before you apply.
Planning Both Schemes Together
The farmers who make the most of both schemes are those who plan for them at the same time rather than treating them as separate decisions.
When you are planning your SFI actions for the year, look at the same land and ask what capital works would complement those actions or make them easier to carry out. A farm entering SFI actions on watercourse margins, for example, might also look at Capital Grants for cattle exclusion fencing, water troughs to move livestock away from watercourses, or buffer strip infrastructure. The SFI action pays for the ongoing management. The Capital Grant pays for the infrastructure that makes it practical.
Similarly, farms with hedgerow management actions in SFI can use Capital Grants for hedgerow restoration works — provided the grant is paying for a physical capital improvement rather than the same management activity the SFI payment already covers.
What to Watch Out for as a Tenant
Stacking adds a layer of complexity for tenants because both schemes carry durability requirements.
SFI agreements run for three years. Capital Grants require five years of management control from the start of the agreement. If your tenancy does not cover the full five-year Capital Grants durability period, you will need a landlord countersignature for the Capital Grants application.
If you are already in SFI and your tenancy is within two years of expiry, think carefully before adding a five-year Capital Grants commitment. It is worth having the landlord conversation early to understand whether a renewal or extension is realistic before committing.
What Farmers Commonly Get Wrong
Assuming the schemes automatically align. SFI and Capital Grants are administered separately, and the rules on each are different. The fact that both are DEFRA-funded schemes does not mean they work in lockstep. Read the Capital Grants guidance for the current year separately from your SFI agreement.
Applying for capital items that overlap with SFI actions. The most common risk is claiming Capital Grants for works that are functionally the same as an activity already in an SFI agreement. If the activity is already being paid for under SFI, it is not eligible for a Capital Grant.
Missing the CSF requirement. Some capital items — particularly water quality items — require Catchment Sensitive Farming support before the RPA will approve them. If you are planning water quality capital items alongside SFI actions on watercourse margins, make sure the CSF support is documented. CSF received within the last two years may count.
Not factoring in the timing. Capital Grants for 2026 close when the funding is allocated — no fixed date. If you are planning to stack Capital Grants with an SFI agreement that starts mid-year, you need to apply for the Capital Grant while funding is still available.
People Also Ask
Can I have SFI and Capital Grants on the same land parcel? Yes, provided the two schemes are paying for different things. SFI pays for ongoing management actions; Capital Grants pay for one-off physical works. The double-funding rule applies where the same activity is being funded from two public sources.
Do Capital Grants affect my SFI payment? No. Capital Grants and SFI are separate payments. Receiving a Capital Grant does not reduce your SFI payment, and vice versa — provided there is no double-funding.
Can I apply for Capital Grants if my SFI agreement is already running? Yes. There is no requirement to apply for both at the same time. Farmers with existing SFI or CS agreements can apply for Capital Grants separately.
What is the maximum I can receive from Capital Grants? Funding caps apply to four groups: air quality, natural flood management, and water quality items are each capped at £25,000; boundaries, trees and orchards items are capped at £35,000. Assessment and improvement items have no cap.
What to Do Now
If you are in SFI, or planning to enter it, look at your farm map and identify where capital works would support or complement the management actions you are carrying out. Cross-reference those with the 80 capital items available in 2026. Then check whether each proposed capital item is genuinely separate from what your SFI agreement already covers.
Applications for Capital Grants are made through the Rural Payments service online. The preparation — mapping, evidence, CSF support, consents — takes longer than the application itself.
The schemes reward farmers who plan ahead. The ones who benefit most from stacking are those who have thought through both at the same time.
Managing SFI actions, Countryside Stewardship obligations, and Capital Grants applications across a working farm is a significant planning challenge. JustFarm is built to bring structure to that process — a planning system and mapping tool that helps you track what is running on which parcels, what evidence you need, and where the interactions between schemes sit. Explore the SFI page or view pricing to see how it works.
