Sustainable Farming Incentive (SFI)
How farm businesses in England can utilise the Sustainable Farming Incentive
As the Basic Payment Scheme (BPS) continues to be phased out, it is more important than ever for farmers to actively seek alternative sources of funding available through Defra.
The Sustainable Farming Incentive (SFI) is now a key source of agricultural funding in England and is an attractive prospect. It is flexible, offers regular payments and there is a growing list of actions that fit into most farm management practices, making it a logical choice for farmers.
Key SFI facts
• Choice of 102 actions
• Quarterly payments to assist farm cashflow
• ‘Farmable’ actions to support food production
• Opportunity for individual farms to select what works for them
• All-year-round application window
Defra has announced reforms to what it had set out in its fledgling Environment Land Management (ELM) scheme in England, scrapping highly prescriptive standards that required a rigid set of multiple actions and instead introducing a more flexible approach to the £2.4billion programme, and with quarterly payments to aid farm business cashflow.
Defra says these new provisions will help protect food security and quality, and soil health. The new standards and actions incorporate some of the options previously available in Countryside Stewardship (CS).
Businesses can apply for the new expanded SFI offer which combines the previous SFI scheme with CS options and also newly introduced actions. This will all be under one single platform, allowing farmers to simplify their agreements into one.
Farmers can apply separately for Higher Tier CS and CS Capital Grants Mid-tier CS applications will close as they are now included within the expanded SFI offer.
Additionally, to drive uptake of the SFI scheme, Defra will pay each business £40/ha in year one of the scheme, up to £2,000 in total, and £20/ha, capped at £1,000, in years two and three.
Who can apply to Sustainable Farming Incentive?
The expanded SFI offer is available to all farm businesses and smallholdings, including new entrants, who were previously not eligible.
Will this affect my Basic Payment Scheme (BPS)?
SFI is a separate scheme and will be paid in addition to the delinked BPS. Read more on delinked payments
How does SFI affect my existing agreement?
It is possible to ‘stack’ existing agreements with the expanded SFI offer. This is something that the team of expert consultants at Brown&Co can assist with.
By levering all the schemes to their full potential, environmental returns per acre can be maximised, enhancing the value to your business.
Will I need to change existing farm policy?
There are an array of SFI actions that most farming systems are already compliant with. In this situation a business won’t need to make changes to access this funding.
Is there a limit on the number of options I can choose?
Provided the land is eligible, most ‘farmable’ actions are not subject to a limit but a 25% cap has been introduced on 10 high-value SFI actions, referred to as ‘limited area’ actions.
These are:
- CIPM2: Flower-rich grass margins, blocks, or in-field strips
- CAHL1: Pollen and nectar flower mix
- CAHL2: Winter bird food on arable and horticultural land
- CAHL3: Grassy field corners or blocks
- CIGL1: Take improved grassland field corners or blocks out of management
- CIGL2: Winter bird food on improved grassland
- WBD3: In-field grass strips
- AHW1: Bumblebird mix
- AHW9: Unharvested cereal headland
- AHW11: Cultivated areas for arable plants
View our list of the 102 actions available under the SFI Expanded Offer
To find out more about SFI and how Brown&Co can maximise the value to your business, contact your local Brown&Co office to register for a free environmental screening under the Future Farm Resilience Fund, subject to eligibility.
Please complete your details below to start the sign-up process:
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