Full details of the expanded and improved Sustainable Farming Incentive (SFI) scheme have been published by the Government. Expressions of interest are open for anyone wishing to apply through the controlled roll out, ahead of the offer being fully self-service from 22nd July.
The expanded SFI offer will be open to new entrants for the first time and will initially comprise 102 actions. Designed in collaboration with the agricultural sector, 20 new options are included to support more sustainable food production. It includes payments for precision farming, agroforestry, a new and expanded offer for upland farmers and more actions for tenants on short-term contracts.
The full list of actions and payment rates for SFI can be found in the scheme information.
Merger with Countryside Stewardship (CS) Mid Tier
More than 50 simplified actions from Countryside Stewardship Mid Tier will be merged into SFI to streamline the application process for farmers. They include a number of actions where durations have been reduced from 5 to 3 years to align with the needs of tenant farmers. From July, farmers will be able to access options currently available in CS Mid Tier, actions from the SFI offer, plus new actions announced at the Oxford Farming Conference – all through one scheme which will be called the SFI.
Bringing the schemes into one place, with one name, means farmers can access the best of both offers – the flexibility of the SFI with the breadth, scale and ambition of CS Mid Tier, just with less paperwork.
Management payments
The doubling of management payments announced by the Prime Minister at the NFU Conference will be paid for the first time this summer. This will be split across quarterly payments in the first year, putting an additional £1,000 in farmers’ bank accounts.
The management payment will pay £40 per hectare for up to the first 50 hectares entered into an eligible agreement and £20/ha for the first 50 hectares for years 2 and 3.
SFI Cap
Earlier this year, Defra put a 25% area limit on 6 of the 9 SFI actions which take land out of food production. This 25% rule is now being applied to 4 further actions in the expanded SFI offer.
The 25% rule which applies to 6 current actions:
- IGL1 – Take improved grassland field corners or blocks out of management
- IGL2 – Winter bird food on improved grassland
- AHL1 – Pollen and nectar flower mix
- AHL2 – Winter bird food on arable and horticultural land
- AHL3 – Grassy field corners and blocks
- IPM2 – Flower-rich grass margins, blocks, or in-field strips
The 25% rule which applies to 4 actions in the expanded offer:
- WBD3 – in-field grass strips
- AHW9 – unharvested cereal headland
- AHW1 – bumblebird mix
- AHW11 – cultivated areas for arable plants
New SFI applicants will only be able to put up to 25% of the total agricultural area of their farm into a combination of one or more of these 10 actions. Defra will continue to consult with the sector and keep actions eligible for the cap under review.
The application process
If you want to apply for the expanded SFI offer, the first step is to register your interest with the Rural Payments Agency (RPA). They will contact you and invite you to apply. Applications will open to the wider sector, based on eligibility, on 22nd July when voluntary guidance will be available to help farmers carry out the actions.
Further actions
Defra are developing even more actions and features to be added to the expanded SFI offer later this year. These new actions will ensure farmers have greater choice and flexibility to produce food within SFI in a way that works best for them.
Find Funding for land or farms Digital Tool
In addition to the expanded offer, the Government has also launched a new digital tool known as ‘Find funding for land or farms’ to signpost farmers and landowners toward the funding that is available to them.
Help & advice
If you are interested in applying for an SFI agreement, our Stewardship & Grants team are available to go through the scheme options with you and identify which actions could work for your farm.
For further help and advice, please contact our Stewardship & Grants team on 01981 590514.
Read more at: Sustainable Farming Incentive: guidance for applicants and agreement holders – GOV.UK (www.gov.uk)
