Lord Grantchester

Defra is working closely with farmers and industry stakeholders to design a future Sustainable Farming Incentive (SFI) offer that fairly and responsibly directs funding. Further details about the reformed SFI offer will be announced following the spending review in summer 2025.

The high level of participation in the Sustainable Farming Incentive (SFI) means we have now reached the upper limit and the SFI budget has been successfully allocated. This meant as of Tuesday, 11 March we had to stop accepting new applications for the SFI.

We remain committed to investing £5 billion of funding in the farming budget this year and next (£2.6 billion for 24/25 and the £2.4 billion for 25/26, as previously announced), and are on track to do so, with every penny of the reductions to delinked payments staying within the sector.

We will target investments away from Direct Payments towards improving the Environmental Land Management schemes, including to those farms least able to adapt.

The Sustainable Farming Incentive is an important offer, but it is part of a wider package. We remain committed to investing in Environmental Land Management schemes. We plan to launch the new Higher Tier scheme later this year; Capital Grants will re-open in summer 2025; we continue to move forward with Landscape Recovery; and we are increasing payment rates for Higher Level Stewardship agreement holders to recognise their ongoing commitment to delivering environmental outcome.

No decision has been made on exactly how the Sustainable Farming Incentive (SFI) will be adapted.

We are evolving the SFI offer and are exploring ways to better target the money, for instance, potentially towards smaller farmers, the least productive land or delivering specific outcomes. We will provide further details about the reformed SFI offer once the Spending Review has been completed.

However, although SFI is an important offer, it is part of a wider package. We plan to launch the new Higher Tier scheme later this year; Capital Grants will re-open in summer 2025; we continue to move forward with Landscape Recovery; and we are increasing payment rates for Higher Level Stewardship (HLS) agreement holders to recognise their ongoing commitment to delivering environmental outcome.

Farms have a key role to play in achieving our environment and climate targets and food security, and Defra is working closely with farmers and the wider food industry. The transition to more climate-friendly agricultural practices goes hand in hand with food security and farm productivity as well as supporting many of our environment targets. We need to support farmers to adopt low carbon farming practices, increasing the carbon stored on their land while boosting profitability. This is vital in achieving a resilient, secure and healthy food system that works with nature and supports British farmers.

Food security is national security. We need a resilient and healthy food system, that works with nature and supports British farmers, fishers and food producers. That is why this Government will introduce a new deal for farmers to boost rural economic growth and strengthen Britain's food security.

The UK has a resilient food supply chain and is equipped to deal with situations with the potential to cause disruption. We produce 62% of all the food we need, and 75% of food which we can grow or rear in the UK for all or part of the year.