Sustainable Farming Incentive: Small Farms

Lord Bishop of Norwich Excerpts

Wednesday 11th March 2026 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

The Farming Minister has spent a long time looking at the different options to try to target the types of farm and types of productivity that she wants to increase. The noble Lord is absolutely correct that the management payment has been removed. That was done to increase the amount of budget that would be available for new agreements. We want as many farmers as possible to be able to benefit from SFI funding this year, which is why that payment was taken out. A number of actions have come out but, in some areas, agreements have seen the payments increase for certain activities—for example, on moorlands. Some areas have gained and some have not, but it is about getting the balance towards where the Government want to see things changing.

[The Lord Bishop of Norwich]

I keep hearing from farmers, particularly from small farms, about the impact of the fiasco of the changes in inheritance tax. Would the Minister give some reassurance that future policy changes will truly be rural-proofed? I declare an interest as this year’s president of the Royal Norfolk Show.

[Baroness Hayman of Ullock (Lab)]

I am beginning to wish I lived in Norfolk so that I could come—it is a long way from Cumbria. I reassure the right reverend Prelate that one of the things we have been working much harder on in Defra, as we develop policies and then manage and oversee them, is working with other departments where there is also an impact. It is really important to have that oversight. The noble Lord was just talking about energy prices, and we work with DESNZ on how best we can approach that. It will be the same for rural-proofing more broadly. It is certainly very much on our agenda.