Sustainable Farming Incentive Grants

Baroness Jones of Whitchurch Excerpts

Monday 5th December 2022 Lords Chamber

Asked by

[Baroness Jones of Whitchurch]

To ask His Majesty’s Government what steps they are taking to increase applications for the Sustainable Farming Initiative grants from farmers.

[The Minister of State, Department for Environment, Food and Rural Affairs (Lord Benyon) (Con)]

My Lords, I declare my farming interests as set out in the register. This June, we opened applications for the sustainable farming incentive, the first of our environmental land management schemes. Though it is early days, we have already seen positive interest. The scheme is being introduced incrementally, and the full offer will be in place by 2025. As the SFI offer is expanded, uptake is expected to accelerate. We are continuing to promote the scheme through our various communications channels to raise awareness of its benefits and to build interest.

[Baroness Jones of Whitchurch (Lab)]

My Lords, the sad fact is that this scheme, which was the bedrock of the Agriculture Act, had hardly got going before the Government announced that it was being reviewed. As a result, fewer than 2,000 farmers have signed up for the new payment scheme, while the old basic payment scheme, on which some 80,000 farmers are reliant, continues to be phased out. This has left an almost £1 billion hole in the rural economy, and we know that farmers are already suffering huge financial costs at this time. The department’s handling of this flagship policy is widely considered to have been a shambles. When will the revised scheme be up and running? Can we be assured that it will maintain the environmental and biodiversity ambitions that underpinned the Act in the first place? How will farmers be compensated for the financial consequences of the delay in rolling it out?

[Lord Benyon (Con)]

I do not accept that there has been a delay, with respect to the noble Baroness. We are tapering out the basic payment scheme—which is understood right across this House as being bad for both the environment and farmers, particularly smaller ones—and replacing it with a scheme through which farmers are starting to see how they can fill the gap created by that taper down. As things stand, the standards that we have published give farmers roughly between £22 and £60 per hectare. We are going to roll out another four standards next year, another five the year after and another five the year after that. There has been no greater degree of consultation in the history of Defra in terms of how we have engaged with the farming community here. This is an iterative process. We have improved the scheme as it has gone on. The response we have had from farming organisations and individual farmers has been positive.