Sustainable Farming Incentive: What This Means for You

The government has announced a major update to the Sustainable Farming Incentive (SFI), which will impact farmers across the country. With £5 billion committed over two years to sustainable farming and nature recovery, the SFI has already supported over 37,000 multi-year agreements, helping farmers receive direct payments while contributing to environmental conservation.

 

What This Means for Farmers

For those already enrolled in the SFI, the good news is that nothing will change. You will continue to receive payments as agreed, with many agreements running until 2028. If your agreement expires in October 2026, you may be eligible for the reformed SFI scheme after your current term ends.

However, for farmers who have yet to enter the scheme, applications are now closed. If you started an application but did not submit it before the closure, you will not be able to apply, unless you were affected by a system fault or were part of the SFI Pilot.

 

Why the Change?

The government believes now is the right time to reset and refine the SFI. A revised scheme will be introduced in 2025, with funding targeted where it can have the biggest impact on sustainability, food production, and farm profitability. The aim is to direct support to those who may struggle to access fair returns from the agricultural market, ensuring a balanced approach that benefits both farmers and the environment.

 

What Has SFI Achieved So Far?

Since its launch in 2022, the SFI has played a crucial role in driving sustainable farming practices:

• 800,000 hectares of arable land are now farmed without insecticides, improving pollinator health and soil quality.
• 280,000 hectares of low-input grassland are being managed more sustainably, protecting biodiversity and enhancing water quality.
• 75,000 km of hedgerows are being actively maintained, contributing to carbon storage, wildlife habitat preservation, and flood defence improvements.

 

Looking Ahead

The revised SFI scheme will be detailed following the government’s Spending Review this summer. Alongside these environmental commitments, there will be further reforms in food supply chains and regulations to ensure fair pricing for farmers.

The government has promised to work closely with industry stakeholders to make sure the new scheme is transparent and beneficial for farmers. As we await more details, it’s clear that sustainability remains at the forefront of agricultural policy, with a strong emphasis on ensuring that farmers are fairly compensated for their essential role in food production and environmental stewardship.

For now, those in existing agreements can rest assured that their payments will continue, and those impacted by the closure of new applications should stay tuned for further opportunities in the revised scheme next year.