With no warning on Tuesday evening, Defra suddenly closed the Sustainable Farming Incentive to new applications. This is despite having said that 6 weeks’ notice would be given if the scheme was to be closed. This is devastating news for farmers and their advisors particularly for those who had been working on draft applications. It is unbelievable that SFI has been closed at a time when farmers are impacted by the accelerated cuts to BPS with no way of applying to SFI to offset these losses before 2026.
We know there are many farmers that were considering applying for SFI for the first time, either because they had recently ended a Mid-Tier agreement, or because they were looking at ways to plug the gap in income created by the accelerated reduction in BPS this year. There were also farmers who started an SFI agreement last year who wanted to apply for some of the new options that are now available, such as the supplements on low input grassland. The closure of the scheme not only prevents farmers from accessing this additional income but has dealt a hammer blow to confidence of both farmers and their advisors in Defra. The way Defra has handled this has been a shambles and the wording of their press release was particularly insensitive given the impact on the industry.
All existing SFI agreement holders will continue to be paid for the duration of their agreement. Defra will also process any submitted SFI applications (but not draft applications) and will accept new applications from those who have been in the SFI Pilot. Note that if you are offered an agreement it needs to be accepted within 10 working days so keep an eye on your RPA account. Details of a “reformed and more targeted” SFI scheme will be announced in Summer 2025 following the spending review but it is not clear when the scheme will reopen. Looking at the budget information (see below), we suspect that they won’t be able to pay for any new agreements until after April 2026.
We are going to collate examples of how the closure of SFI has impacted our members and farmers that we have supported through Farm for the Future. If you would like to share your situation, please email: Veronica@thefarmernetwork.co.uk. As a farmer support group, we would like to give examples of the impact to organisations who are in contact with Defra nationally including the Royal Countryside Fund.
Defra's press notice is here and further details are on Defra's Farming Blog.
