Sustainable Farming Incentive

All claimants of BPS subsidies will be eligible for the Sustainable Farming Incentive, which is to be opened for applications in Spring 2022. The scheme is currently being run as a pilot to help develop 3 future schemes which will be funded by the gradual deduction in BPS payments. Their main aims follow the government’s 25-year environmental plan with objectives such as cleaner air, plentiful water, flourishing plants and wildlife. These schemes are also designed to help British farming reach net zero for carbon.

There are 8 initial standards for the SFI (Sustainable Farming Incentive) scheme:

1. Arable & horticultural land (payments of between £28-£74 per hectare)
2. Arable & horticultural soils (payments of between £30-£59 per hectare)
3. Improved grassland (payments of between £27-£97 per hectare)
4. Improved grassland soils (payments of between £6-£8 per hectare)
5. Low – no input grassland (payments of between £22-£110 per hectare)
6. Hedgerows (payments of between £16-£24 per 100 metres)
7. On farm woodland (payments of £49 per hectare)
8. Waterbody buffering (payments of between £16-£34 per 100 metres)

Overview:

Arable & horticultural land

• Rewards farmers for managing land to increase biodiversity.
• They are looking at providing food rich habitats, habitat connectivity, efficient use of nutrients, effective pest management, a reduction in farm greenhouse gas emissions and an overall water quality improvement.

Arable & horticultural soils

• Aims are to improve farm soils to promote clean water, improve our climate change resilience, aid biodiversity and help food production.
• They are looking for better water quality (reduced sediment, reduced chemical loss into watercourses), better management of soil erosion and run-off, reduction in farm greenhouse emissions and enhancement of the farms ability to store carbon and water.

Improved grassland

• This standard covers sustainable management of grassland in order to increase biodiversity and improve soil condition which then aids in climate change resilience.
• They will monitor declining species, habitats and their connectivity, reduction in farm emissions, reduction in soil erosion and run-off.

Improved grassland soils

• Looks at grassland soils and maintaining great condition to fight climate change.
• This will enhance carbon sequestration in grass, reduce flooding and erosion, help with biodiversity and water storage.

Low – no input grassland

• The aim is to protect habitats and species in grassland.
• They will monitor resilience of wildlife in relation to climate change, improve soil, water and air quality and help to create better carbon sinks on farms.

Hedgerows

• This payment will be given when hedgerows are used to provide nutrients, food and shelter to birds and insects.
• They will monitor your management of the hedgerows with the aim of improving air quality, and connecting habitats.

On farm woodland

• For this standard there is only one level (introductory) meaning you will only get paid £49 per hectare.
• You will be asked to improve habitats and wildlife accessibility between woodland and dead wood.
• You will also be asked to increase your knowledge of woodlands, carbon sequestration and threats through training and Webinars.

Waterbody buffering

• This standard looks at adding and managing buffer strips around arable fields to better protect water bodies by absorbing any leached nutrients, thereby preventing pollution. It should also increase biodiversity by creating new habitats, and will help in adverse rainfall by breaking the flow of water.
• They will want you to take an active approach on managing your current water bodies, assess the risk and make an action plan on how to be better prepared.
• Payment for these standards is dependent on the ‘level’ the farmer is willing to adhere to. The three levels are introductory, intermediate and advanced.
• Later to be released are the following 2 standards:

Moorland and Rough Grazing Standard (Payment rate to be confirmed). As a part of the new ELMs scheme that is soon to begin its pilot schemes, there will also be funding for yearly vet visits in the aim to improve animal health & welfare. Dependent of livestock the payments for this will range between £269-£775 per annum.

Moorland & Rough Grazing Standard

This standard pays farmers after an initial assessment of their Moorland. The payment depends on the vulnerability of the land and may not require the farmer to make any physical changes to the land. Payment for this is still in discussion but we expect to see estimates in November

For both available schemes and the introduction of the Annual Health & Welfare Review the durations, flexibility and how they intend to monitor the schemes is yet to be announced.

More options and standards will be released at a later date. For more information on the SFI schemes currently being piloted, read more at: https://www.gov.uk/government/publications/sustainable-farming-incentive-scheme-pilot-launch-overview/sustainable-farming-incentive-defras-plans-for-piloting-and-launching-the-scheme