UK Government has closed the door on new applications for the Sustainable Farming Incentive (SFI24) leaving many farmers with no funding support for the coming year.
A government news release explained that Labour had inherited an SFI scheme that was uncapped, despite the fact that the farming budget was finite.
Daniel Zeichner, the food security and rural affairs minister, said, “We will be coming forward with a scheme which is properly capped, because the problem we inherited from the previous government was no cap on this scheme. It’s basically first-come-first-served, and there was always going to come a point where it was finished, which is essentially the point we’ve reached.”
Defra said that any farmer who has already submitted an eligible SFI application should still be accepted.
The Department also said that details of what it calls a new, fairer and better targeted SFI, with “strong budgetary controls” will be available after the June Spending Review.
SFI reform
In a statement rushed out late on Tuesday evening, Defra said, “A reformed SFI scheme, with a budget to be confirmed in the Spending Review this summer, will direct funding where there is greatest potential to do more on nature and where there is the least ability to access decent returns from agricultural markets, or other sources of investment, as set out in the Land Use Framework.
“In parallel, we will also reform markets, supply chains and regulations to ensure farmers receive fair payment for food production, with private sector support where possible.
“Details of the revised SFI scheme will be announced in summer 2025, building on lessons learned and stakeholder feedback. We expect the scheme to open again in 2026.”
One farming source responded saying that a competitive SFI aimed at areas of low production value implied that “the lowlands will be left to the market.”
Shattering blow
NFU President, Tom Bradshaw, said, “This is another shattering blow to English farms, delivered yet again with no warning, no understanding of the industry and a complete lack of compassion or care.
“We have had major concerns for years about whether there was the capability within Defra to deliver the agricultural transition post-Brexit. We have warned time and time again that large parts of the SFI were poorly designed and that the department was consistently failing to deliver it.
“When the Chancellor dramatically accelerated the end of the old schemes for all farmers, it was on the promise that they would all be able to access the new ones, which paid them for doing environmental work. But the door has now been slammed shut for thousands of farmers, creating haves and have nots based purely on timing.
“They say the money is spent, but because Defra refuses to be transparent we don’t know where it’s been spent, or whether it’s all been spent within this year.
“The awful dilemma now faced by many farmers is whether to turn their backs on environmental work and just farm as hard as they can to survive. This is a loss to both farming and the environment and cannot be what was intended.”
Promises trashed
Victoria Vyvyan, the president of the Country Land and Business Association, said, “Of all the betrayals so far, this is the most cruel. It actively harms nature. It actively harms the environment. And, with war once again raging in Europe, to actively harm our food production is reckless beyond belief.”
In response to the angry reaction, Zeichner said, “I understand there will be people will be disappointed, and that’s why we’ll be coming forward after spending review with a revised scheme which people can apply for.”
Cumbria farmer, James Rebanks, said, “The promise was absolutely clear. We as a country would dismantle the old production subsidies and would be offered this green transition. The promise has been trashed. 76 per cent of the old payments have been taken away and now no alternative support exists for many farmers.”
Read the UK Government’s update on the Sustainable Farming Incentive