Sustainable Farming Initiative

Mark Spencer Excerpts

Tuesday 19th December 2023 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Dame Maria. I pay tribute to the hon. Member for Westmorland and Lonsdale (Tim Farron) for calling this important debate. I must confess, I am slightly confused by his request. He spent nearly 20 minutes flip-flopping between telling us not to constantly keep changing, and telling us to change the system to make it more acceptable to farmers. I am not quite sure which he wants us to do.

Let me start by saying that this whole debate around the current transition is thought-provoking. The discussion around the sustainable farming incentive has been interesting. It is a scheme that will pave the way for both the production of food and the preservation of nature—that is what we want to try to achieve.

British farmers are the life and soul of our rural communities. They have continued to put food on our tables despite unprecedented challenges, such as the rising costs of production following Russia’s invasion of Ukraine. If we couple that with the impact of the covid pandemic and the looming impact of climate change, the industry has shown resilience and adaptability in responding to all those challenges and continuing to keep us fed as a nation.

The Government’s aim with SFI is to make things fairer and better for our farmers, whether that be through our new approach to regulation, finding areas where we can make the system itself work better for our producers, or the policies that we introduce. The SFI scheme does just that. It aims to support the environment and food production, and it rewards farmers for practices that will help to produce food sustainably and protect the environment at the same time, while also providing them a reliable income for doing so. That is because we know that food production and nature preservation go hand in hand. Those practices will help to look after farms in the short and long term by improving soil health or mitigating the impact of extreme weather.

The aim is for the scheme to be flexible for farmers in both the actions that they can take and the land on which they farm. There is no minimum or maximum area of land that farmers can enter into the scheme: anyone who applies and is eligible will get an agreement, with the choice to add more land and actions to the agreement each year. That goes to the core of the argument about the number of available measures. We want to create a menu from which farmers can choose and that they can stack on their farms. Rather than prescribing what they must do, they should have a menu from which to choose what works best for their farm and to their advantage. That is helping those farmers to make their businesses more sustainable.

As we set out in the autumn, after listening to the concerns of farmers, we ensured that farmers who had a live agreement by the end of this year would receive an accelerated payment for the first month. We have already paid out £7.89 million to more than 2,000 farmers in early SFI payments, which will help with their cash flow, making the scheme work for farm businesses. That is what SFI is about. This year the sustainable farming incentive was expanded, and we made it more flexible based on the feedback we received from farmers. We introduced a further 19 actions to SFI. We had previously joined actions into groups, but farmers said that making them into a group when they had to deliver on all the standards was too inflexible. We now have a total of 23 separate actions that farmers can pick and mix from, including actions relating to soil health, hedgerow management, providing food and habitats for wildlife and managing pests and nutrients, giving farmers the flexibility to do what is best for their business.

For upland farmers who are tenants, which I know the hon. Member for Westmorland and Lonsdale is interested in, we have made SFI much more accessible through shorter agreement lengths, increased flexibility to leave without penalty if they lose management control of the land that they farm and no requirement for landlord consent. Those farming on commons are also eligible for SFI. We have introduced supplementary payments for those farming on commons with others. The flexibility, the broad offer and the importance of steady, regular income that farmers can count on are some of the reasons that SFI has already received record interest from farmers around the country. Before it opened, we received expressions of interest from more than 15,000 farmers, across all types of farm sizes, and all of them have been invited to apply. Nearly 5,000 applications have been submitted so far, and more than 2,000 farmers have already started SFI this year.

Looking to the future, we need to ensure that the agricultural transition works for all farmers, which is why we are supporting them through the change, from commoners to small family farms on our uplands. We are working on additional actions for upland farmers in moorlands, which we will introduce into SFI in 2024. In everything that we do, our aim is to back a profitable and sustainable food and farming sector, now and for future generations. The improved SFI offer is at the heart of that, with record interest from farmers around the country. This is part of our range of schemes for farmers. We are also carrying on with the countryside stewardship scheme, which more than 30,000 are already involved with, and we are making that work better, bringing more flexibility in order for higher level stewardship holders to have CS or SFI agreements in addition to their existing HLS one.

Overall, we have almost doubled the number of farmers in our environmental schemes this year, and we have put our foot to the floor to help more farmers as we move ahead. We will continue to support those farmers. We will continue to demonstrate flexibility. We will continue to listen to their views and support them on this journey. That will be the model on which we operate. I encourage farmers to embrace these new schemes and to get involved. We will listen and we will shape them as we move forward. May I finish, Dame Maria, by wishing everybody a merry Christmas and a sustainable and profitable future in the farming sector?

Question put and agreed to.