Thousands of farmers are set to lose funding for environmental work at the end of 2025, as their Countryside Stewardship (CS) Mid Tier agreements expire without a clear replacement scheme in place.
According to a Freedom of Information request to Defra, 5,820 agreements will end in December 2025, raising concerns that land managed for nature may be returned to food production.
The situation has led to increasing pressure on the government to provide clarity, with both the National Farmers’ Union (NFU) and the Nature Friendly Farming Network (NFFN) warning of a potential “support cliff-edge” for farm businesses and environmental delivery.
Why farmers face a funding gap
The current challenge stems from the timing of changes to agri-environment schemes.
- CS Mid Tier agreements expiring: Farmers who entered five-year agreements in 2020 will see their contracts end on 31st December 2025. These schemes have rewarded farmers for work such as planting hedgerows, creating wildlife habitats, and managing grassland for biodiversity.
- SFI not yet open: The Sustainable Farming Incentive (SFI), intended as the main replacement for Countryside Stewardship, is not currently open for new applications. This leaves farmers unable to transition smoothly into a new scheme.
- Higher Tier invite-only: The new Countryside Stewardship Higher Tier option requires farmers to be invited to apply, meaning only a small number of agreements will be available. Many farmers who previously relied on Mid Tier agreements are therefore excluded.
The result is a potential funding gap that could last months, leaving farmers uncertain about how to plan their land management.
Environmental & business impacts
If no interim solution is provided, farmers could face difficult decisions about whether to continue maintaining environmental features without payment or return land to food production.
The consequences could be wide-ranging:
- Loss of habitat: Land that has been set aside for pollinators, farmland birds, and other wildlife may be ploughed up and put back into arable or grass production.
- Setbacks to environmental goals: The government has legally binding targets to halt species decline and address climate change. A break in funding could hinder progress towards these commitments.
- Financial strain on farm businesses: Many farmers rely on stewardship payments as a key part of their income. Without them, some may struggle to balance food production with environmental delivery.
NFU Deputy President David Exwood highlighted the role farmers have played over decades in supporting biodiversity:
“Farmers have long been the custodians of our countryside. Many have had agri-environment agreements for 30 years – creating wildflower corridors, feeding farmland birds, and nurturing species-rich grassland. But without a plan from Defra about the future of these schemes, they’re left with a difficult decision – to either continue their environmental work, potentially putting them out of pocket, or to put this land back into food production. Certainty is a vital ingredient in farming and right now, that is missing altogether.”
Farmers’ groups call for action
The NFU and NFFN are both urging Defra to act swiftly to avoid disruption. Their key asks are:
- Rolling over CS Mid Tier agreements: Allowing one-year extensions would give farmers continuity of funding while new schemes are finalised.
- Launching the SFI quickly: Opening applications as soon as possible would give farmers the ability to transition into a new system without a break. However, it has been said that SFI is not likely to re-open before April 2026 when there will be a new budget. Defra are also working to install a new IT system for the RPA which could delay application windows further.
The NFU has written to Farming Minister Daniel Zeichner, warning that further delays risk undermining decades of positive environmental work.
A decision needed soon
For farmers, the uncertainty comes at a critical time of year. Land management decisions for 2026 must be planned months in advance and, without clarity from Defra, many may feel forced to prioritise food production over environmental commitments.
Industry groups argue that a straightforward rollover of existing agreements would be the simplest way to maintain environmental delivery in the short term. It would also give government breathing space to finalise the design and rollout of the Sustainable Farming Incentive.
With just months remaining before agreements end, farming organisations say the need for a decision is urgent. Without one, both farm businesses and the environment could be left worse off.