Sustainable Farming Incentive

Robbie Moore Excerpts

Thursday 15th October 2026 Commons Chamber

[Robbie Moore (Keighley and Ilkley) (Con)]

(Urgent Question): To ask the Secretary of State for Environment, Food and Rural Affairs if she will make a statement on the sustainable farming incentive.

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Stephen Morgan)]

In summer 2024, we inherited a sustainable farming incentive scheme from the previous Conservative Government that had no budget control and no proper alignment of SFI actions to environmental sustainability targets. The farming schemes were underspent, meaning that millions of pounds were not going to farming businesses.

This Government implemented many improvements to the sustainable farming incentive 2026 to make it more focused, more transparent and fairer, so that as many farmers as possible could benefit from agreements. For example, we introduced the new rule that each farm business could have only one SFI26 agreement, which cannot exceed £100,000 per year. We also streamlined the number of SFI actions to remove complexity while still having plenty of actions available for all farm types.

We held the first application window earlier in the summer, which was open only to two groups: small farms and farms without existing environmental land management revenue agreements. Window 2 of the sustainable farming incentive 2026 opened on the morning of Tuesday 22 September 2026 and closed at 3.48 pm on the same day. It was open to all farmers and land managers with at least three hectares of agricultural land.

I recognise that some farmers who wanted to join SFI26 will be disappointed not to have secured an agreement this year. There was exceptional demand for SFI26, which demonstrates farmers’ desire to invest in the environment, because healthy soils and thriving habitats are fundamental to farm profitability, productivity, sustainability and resilience.

In anticipation of high demand, we allocated an additional £20 million to window 2 on top of the £50 million announced by the Prime Minister in August so that we could fund as many agreements as possible. We have therefore allocated a total of £310 million to nearly 19,000 new agreements across both application windows in SFI26, including £253 million and 12,200 new agreements through window 2.

We now have 70,000 multi-year environmental land management scheme agreements in place. Those agreements will invest a total of £930 million in environmentally sustainable farming over the next three years. That is nearly £1 billion of investment in nature-friendly farming as part of £11.8 billion in funding for sustainable farming in this Parliament.

We plan to offer an SFI scheme in 2027, and we will look to open the 2027 offer as early as possible to ensure that farmers can access funding. We are already looking to make changes to improve the SFI for next year, continuing our close work with farmers and stakeholders by listening to experiences and learning lessons from this window.

In keeping with the commitments made in “Farming Roadmap 2050”, we plan to offer an SFI scheme in 2027. As part of that, we will scrap the first come, first served application process. We will look to open the 2027 window as early as possible to ensure that farmers can access funding and we will work with farming representative organisations including the National Farmers Union to consider how we refine the scheme for SFI27. As set out in the farming road map published earlier this year, the Government are committed to a farming sector that is productive, profitable and resilient.

[Robbie Moore]

I cannot stress enough just how badly mishandled the sustainable farming incentive has been under this Labour Government. It has been a complete and utter mess, and our hard-working farmers and nature have once again lost out under this Labour Government. However, it was not without this Government having lots of warning well in advance. After 18 months of inaction following the Government’s choice to close the scheme in March 2025, for the first time ever the scheme was changed to operate on a first come, first served basis, making it competitive with no quality control. It was simply based on who could press “Send” first. The consequence was a build-up of nearly 40,000 farmers trying to get into the scheme when it finally opened, and only 12,200 were successful. The application window closed five and a half hours after it opened, after all the money had gone. Farmers had been designing their applications for months, and many are now under more financial and emotional strain.

Given that the value of the expiring agreements was more than £520 million and the budget for SFI26 was significantly reduced to £310 million, can the Minister explain where the £210 million has gone? With so many farmers being locked out of the scheme, clarity and certainty for next steps is needed now. Will he confirm when applications for SFI27 will open? Will he publish a forward plan now so that farmers can start preparing? What support will he give to those with expiring agreements to minimise gaps in cash flow? What budget has he allocated for SFI27 so that he can be certain that we will not see this same debacle all over again?

The farming Minister has now had a month to reflect on these issues. Our farmers want answers now—not more warm words or him giving out surveys, saying that he is in listening mode. Answers are needed right now to the questions that have been raised.

[Stephen Morgan]

I am not going to claim that this scheme is perfect or working as we want it to work, but we inherited this scheme from the previous Government, and we are fixing it. Under them, just a quarter of the funding went to 4% of farms, often large ones, with no targeting. We have already made changes to address that; there was a window earlier this year specifically for small farms and those that had not participated in the scheme before. If the Conservatives thought the scheme was not working, why did they not do anything to fix it in their years in power? If they did not think that it should be a first come, first served approach, why did they not change it?

I noticed that the shadow Environment Secretary, the right hon. Member for Louth and Horncastle (Victoria Atkins) said at party conference:

“After 18 months of inaction, Labour chose to design this scheme, for the first time ever, on a first-come, first-served basis.”

That simply is not true, and I encourage the shadow Minister to correct the record. It is a bit rich for the hon. Gentleman to come here today with all these different things. He could have changed things when he had the opportunity to do so. The Conservatives could not even get all the funding out the door. They left money on the table when it should have been going into farmers’ pockets. I will not accept the criticism. This scheme was designed by them, but we are fixing it, and that is what I will continue doing.

--- Later in debate ---

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I thank the hon. Member for his point of order. Members themselves, not the Chair, are responsible for what they say in the Chamber. If the shadow Minister wishes to clarify his earlier remarks, that is for him, but he needs to keep it short, because I do not want to continue the debate.

[Robbie Moore (Keighley and Ilkley) (Con)]

Further to that point of order, Madam Deputy Speaker. As a matter of fact, when the SFI window was closed under this Labour Government in March 2025, that process in itself led to the huge demand that came up in September this time, therefore making it competitive and first come, first served. That is exactly the scenario that happened. [Interruption.]

[Madam Deputy Speaker]

Order. We are not going to continue the debate. The urgent question is over.