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Sustainable Farming Incentive Update

Sustainable Farming Incentive Update

Wed 21 Jun 2023

Insights
Agricultural business consultancy


After a long wait the Department for Environment, Food & Rural Affairs (Defra) have finally announced more details on the Sustainable Farming Incentive (SFI) today (21.06.2023), an update that is long overdue as many people have been waiting for details to decide on how to progress with their own agri-environmental schemes.

Schemes will last for three years, with opportunities to apply for the next set of standards when they are published in 2024. Payments under the scheme will be paid in quarterly instalments with the first payment made four months after your agreement starts. The SFI 2023 offer now includes a management payment of £20/ha for the first 50 ha included in a SFI agreement.

There are a mix of rotational and static options with the possibility of varying the coverage of the rotational options, so they work with your crop rotation and different sizes of parcels. You can increase and decrease your areas - as long as it’s within 50% of the original area applied for.

All SFI applications for the arable and horticultural soil standard are now closed and this standard will not be included going forwards. The old arable and horticultural soil standard was a percentage cover option, with strict rules about overlap.

Anyone with an existing SFI scheme or who have previously applied for the arable and horticultural soil standard will be contacted by Defra to ensure that they do not lose out, but the RPA have not explained what this means.

The new Soils standard offers more flexibility with other agri-environmental scheme overlap, meaning you can receive payment for SAM1 to overlap with some options under Countryside Stewardship (CSS). In general, the payment rates for all SFI options are very similar to the equivalent options under CSS.

The options you can apply for under the SFI 2023 are listed in the table below, it is also indicated if they can be rotational or static and whole or part parcel.

If you have any questions about the Sustainable Farming Incentive, it’s interactions with other schemes or Countryside Stewardship please contact your local Brown&Co office.

Standard Option code Option Annual payment Rotational
/static
Whole or
part parcel
Actions for Soils SAM1 Assess soil, test soil organic matter and produce a soil management plan £5.80 per hectare and an additional payment of £95 per agreement Static Whole parcel
SAM2 Multi-species winter cover crops £129 per hectare Both Both
SAM3 Herbal leys £382 per hectare Both Both
Actions for Moorlands MOR1 Assess moorland and produce a written record £10.30 per hectare and an additional payment of £265 per agreement Static Whole parcel
Actions for Hedgerows HRW1 Assess and record hedgerow £3 per 100 metres - one Static N/A
HRW2 Manage hedgerows £10 per 100 metres - one side Static N/A
HRW3 Maintain or establish hedgerow trees £10 per 100 metres - both sides Static N/A
Actions for integrated pest management IPM1 Assess integrated pest management and produce a plan £989 per year N/A N/A
IPM2 Flower-rich grass margins, blocks, or infield strips £673 per hectare Both Both
IPM3 Companion crop on arable and horticultural land £55 per hectare Both Both
IPM4 No use of insecticide on arable crops and permanent crops £45 per hectare Both Whole parcel
Actions for nutrient management NUM1 Assess nutrient management and produce a review report £589 per year N/A N/A
NUM2 Legumes on improved grassland £102 per hectare Both Both
NUM3 Legume fallow £593 per hectare Static Both
Actions for farmland wildlife on arable and horticultural land AHL1 Pollen and nectar flower mix £614 per hectare Static Both
AHL2 Winter bird food on arable and horticultural land £732 per hectare Both Both
AHL3 Grassy field corners and blocks £590 per hectare Static Both
Actions for farmland wildlife on improved grassland IGL1 Take grassland field corners or blocks out of management £333 per hectare Static Both
IGL2 Winter bird food on improved grassland £474 per hectare Both Both
Actions for buffer strips AHL4 4m to 12m grass buffer strip on arable and horticultural land £451 per hectare Static Both
IGL3 4m to 12m grass buffer strip on improved grassland £235 per hectare Static Both
Actions for low input grassland LIG1 Manage grassland with very low nutrient inputs (outside SDAs) £151 per hectare Static Only total SFI available area, unless done with IGL1
LIG2 Manage grassland with very low nutrient inputs (SDAs) £151 per hectare Static Only total SFI available area, unless done with IGL1

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