Expanding the Sustainable Farming Incentive Offer

Mark Spencer Excerpts

Tuesday 21st May 2024 Written Statements

[The Minister for Food, Farming and Fisheries (Sir Mark Spencer)]

Today, the Government will publish the details of the expanded sustainable farming incentive offer, providing significant improvements and expansion to the scheme, so that they work for farmers and their businesses.

In six months, almost a quarter of all farmers have applied to join the SFI. This is the Department for Environment, Food and Rural Affairs’ most popular agri-environmental scheme to date. This level of interest underscores the importance of schemes that are flexible and straightforward, qualities we have worked to incorporate based on the direct input of the farming community.

From July, farmers and land managers will have the opportunity to access an expanded offer, bringing together and enhancing the SFI and countryside stewardship mid tier. This will simplify and streamline the application process, allowing farmers to focus on what they do best: producing food. For the first time, the SFI is available to those who did not receive basic payment scheme payments.

The expanded SFI offer will increase the number of actions to 102, covering a wide range of themes. The 102 actions comprise of all the actions currently available in the SFI offer, 23 new actions including agroforestry, precision farming and no-till practices for the first time, a new and improved offer for upland farmers, a much wider range of actions accessible to tenants, and 57 improved versions of actions currently in countryside stewardship mid tier, including one endorsed action initially—species-rich grassland—which will come online when the offer opens. New actions will support flood and water management, helping businesses to become more resilient to the changing climate and challenging weather conditions. We are developing even more actions to be added to the expanded SFI offer later this year, including 16 more actions that were announced in January’s agricultural transition plan update.

To safeguard domestic food production, in March 2024 we placed limits on the amount of land farmers can enter into six SFI actions. In the expanded SFI offer, we are placing limits on an additional four actions to further safeguard domestic food production.

We are doubling the management payment, recognising the work farmers do to enter these schemes. From summer, those with existing agreements will receive up to an additional £1,000 in the first year of their agreement, paid quarterly. The management payment will pay £40 per hectare for up to the first 50 hectares entered into an eligible agreement and £20/ha for the first 50 hectares for years two and three.

On average, farmers taking part in the SFI are receiving more money than they would have done through the BPS. The average value per hectare of applications so far is £147. Alongside delinked payments for small farms this year —£115/ha—this adds up to more than the value of BPS per hectare. Farmers received £233/ha through BPS but are receiving an average of £262 through delinked payments and the sustainable farming incentive.

We have designed the SFI so that it works for small farms. In addition to the increased payment for the management payment, which favours smaller farms, we have extended eligibility to new entrant farmers and smallholders and quadrupled the number of actions available.

Our aim is to provide farmers with the necessary tools, funding and support to navigate the challenges posed by the changing climate, such as the recent prolonged wet weather. This will ensure their businesses remain resilient and productive while delivering environmental benefits. The expanded sustainable farming incentive offer and the protection of the farming budget at its current level is a clear indication of our dedication to the agricultural sector, and we are confident that it will contribute positively to both our environment and food security.

DEFRA invites all eligible farmers and land managers to explore the new expanded offer and take advantage of the benefits it provides.

This summer, we will publish information on countryside stewardship higher tier, including details of each higher-tier action, eligibility, how to apply and how to request specialist advice. From later this summer, farmers will be able to start working with Natural England or Forestry Commission advisers to prepare to apply. Online applications for higher tier will open in the rural payments service this winter. Applications will then stay open on a rolling basis, so farmers can choose when to apply.

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