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The government has unveiled comprehensive details regarding the enhanced Sustainable Farming Incentive (SFI) program, which is set to launch for farmers in July. This announcement, made on Tuesday, 21 May, highlights significant improvements to the scheme.
For the first time, the expanded SFI will be accessible to new entrants and will feature an impressive array of 102 actions, formulated in collaboration with the agricultural community. Among these are over 20 new options aimed at promoting sustainable food production. The updates include initiatives supporting precision farming, agroforestry, a tailored offer for upland farmers, and more actions specifically designed for tenants on short-term leases. The overarching goal is to assist farmers in managing input costs while enhancing productivity.
The initiative also introduces actions focused on flood preparedness, which will help agricultural enterprises build resilience against climate change and adverse weather patterns.
The SFI is inclusive of all farming types, including tenants and upland farmers, and is gearing up to become the most popular scheme to date, with 23,000 applications recorded. More than 50 simplified actions from the Countryside Stewardship Mid Tier will be integrated into the SFI to create a more straightforward application process. Notably, some actions will have their duration reduced from five to three years to better suit tenant farmers’ needs. Furthermore, a new digital tool, called ‘Find funding for land or farms’, has been launched to help guide users to available funding resources.
Farming Minister Mark Spencer commented:
This year has presented significant challenges for farmers, which is why we are fulfilling our promise to share detailed information on the expanded SFI offer ahead of the July launch.
The new SFI framework offers farmers increased flexibility, simplifies processes, and enhances payment rates, enabling them to focus on producing high-quality food sustainably.
Additionally, it has been confirmed that the application period for the CS Higher Tier, aimed at providing grants for environmental protection, restoration, or enhancement, will commence in the winter, with agreements beginning in January 2025. The package is designed to simplify the process and reduce the need for extensive advice and endorsements.
Further enhancements to the SFI will be introduced later this year, including an educational access initiative announced in January’s Agricultural Transition Plan update. These developments will ensure that farmers experience greater flexibility in how they produce food sustainably within the SFI framework.
This announcement aligns with commitments made at the Oxford Farming Conference in January to increase average payment rates by 10% for SFI and CS agreements, alongside premium payments for actions yielding the most significant environmental benefits. Farmers will see the benefits of the doubled management payments that were announced by the Prime Minister at the NFU Conference, with payments starting this summer distributed quarterly, leading to an additional £1,000 credit for farmers.
In March, new regulations were implemented to restrict SFI applicants to allocating a maximum of 25% of their land to six SFI actions that remove land from direct agricultural production. This 25% limitation will now also apply to specific actions in the expanded offer, including in-field grass strips, unharvested cereal headlands, bumblebird mixes, and cultivated areas for arable plants. We will continue engaging with the agricultural community to review these caps.
Support for Farmers
This SFI announcement follows a substantial support initiative for farmers and growers introduced at the Prime Minister’s Farm to Fork Summit in Downing Street. Included is a new Blueprint for Growing the UK Fruit and Vegetable Sector, detailing collaborative strategies between the industry and government to bolster domestic production and stimulate investment, benefiting a sector worth over £4 billion to the UK economy.
The launch also featured the first UK Food Security Index, enhancing resilience against unexpected market shocks and severe weather events.
The government has pledged to maintain a £2.4 billion annual agriculture budget to support sustainable and profitable food production while safeguarding natural ecosystems and advancing net zero goals. Our new initiatives cater to a diverse range of farming operations, and significant efforts have been made to incorporate feedback from farmers during development.
Further Information
SFI Overview
The SFI scheme compensates farmers for adopting and sustaining environmentally conscious farming practices that:
- Emphasize the importance of food production;
- Enhance and preserve the natural environment while bolstering farm productivity and resilience.
The scheme provides participants with maximum flexibility in achieving action objectives and adopts an ‘advise and prevent’ approach to regulation and inspection, offering support rather than penalties for errors.
From July, farmers and land managers can access options within Countryside Stewardship Mid Tier (CS MT), actions from the SFI program, and newly announced initiatives from the Oxford Farming Conference, all within a singular framework referred to as the Sustainable Farming Incentive.
This consolidation simplifies the process, allowing farmers to leverage the dual benefits of SFI’s flexibility and the broad ambitions of CS MT with reduced paperwork.
For complete details about the expanded SFI offer, please visit gov.uk.
CS Higher Tier
Later this summer, we will release information about the CS Higher Tier, including eligibility criteria, application procedures, and guidance for specialist advice related to Higher Tier actions.
Eligible farmers seeking CS Higher Tier actions will require specialist advice, typically provided by Natural England or the Forestry Commission, and may also involve additional guidance from Historic England or the Environment Agency based on their chosen actions.
Farmers can begin collaborating with Natural England or the Forestry Commission this summer to prepare their applications, which may include necessary feasibility studies or plans.
Eligible candidates will be able to submit their online applications for CS Higher Tier through the Rural Payments service this winter, with initial agreements beginning early in 2025. Applications will remain open throughout the year, allowing farmers to decide the most convenient time to apply. Typically, agreements will commence the month following application approval.
Controlled Roll Out
Expressions of interest have started for farmers wishing to participate in the controlled roll-out ahead of the full self-service launch in July.
The Rural Payments Agency (RPA) will invite a demographic of customers to participate in the controlled roll-out at the end of this month to fully test the service and collect representative feedback.
If you’re interested in being one of the first to access the enhanced SFI offer, you can complete a short expression of interest on the RPA website.
Select individuals will be chosen to test the service and submit applications before the broader rollout to the agricultural sector commences.
Applications will open to all eligible parties on 22 July.
Find Funding for Land or Farms
SFI Cap
Farmers have expressed a desire for measures that protect domestic food production. In March, we implemented restrictions on the land farmers can allocate to six SFI actions.
- IGL1 – Take improved grassland field corners or blocks out of management
- IGL2 – Winter bird food on improved grassland
- AHL1 – Pollen and nectar flower mix
- AHL2 – Winter bird food on arable and horticultural land
- AHL3 – Grassy field corners and blocks
- IPM2 – Flower-rich grass margins, blocks, or in-field strips.
The 25% limitation is now being applied to four actions in the expanded offer due to their similar nature to the aforementioned six. They include:
- WBD3 – In-field grass strips
- AHW9 – Unharvested cereal headland
- AHW1 – Bumblebird mix
- AHW11 – Cultivated areas for arable plants
New SFI applicants will be permitted to allocate a maximum of 25% of their farm’s total agricultural land to any combination of these ten actions.
SOURCE
Elena Rossi is a graduate of the University of Hohenheim in Germany, where she earned her degree in Agricultural Economics. Her coursework centered on farm management, agricultural policy, and rural development. Elena is dedicated to enhancing the economic viability of small farms and works as a policy analyst, advising on agricultural economics and food security issues in Europe.
