Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment he has made of the potential impact of the closure of the Sustainable Farming Incentive on micro dairy farms.

Defra has closed the Sustainable Farming Incentive (SFI) for the submission of new applications, but existing agreements will continue. We now have over 37,000 live SFI agreements. Every penny in all existing SFI agreements will be paid to farmers, and outstanding eligible applications that have been submitted will be processed.

We will provide further details about the reformed SFI offer once the Spending Review has been completed.

SFI is an important offer, but it is part of a wider package. Ensuring fairness in supply chains is key for UK dairy farmers in supporting the sustainability of the sector. The Fair Dealing Obligations (Milk) Regulations 2024 came into force in July last year. These regulations improve fairness and transparency in dairy contracts, requiring clear terms on pricing, termination, and prohibiting unilateral changes.

In addition, the Dairy Export Taskforce, an industry/Government partnership, is focused on boosting export growth in the dairy sector. This included the organisation of a successful Government funded dairy showcase for international buyers in the autumn of 2024.