Sustainable Farming Incentive (SFI): A Guide to the New and Improved Scheme

The latest Sustainable Farming Incentive (SFI) Handbook has been released, providing comprehensive information about the scheme's rules and the actions it will pay for.

Although applications for SFI are temporarily closed, the new and expanded offer will be open for a controlled rollout starting from August. This blog aims to summarise the key details outlined in the SFI Handbook, highlighting how SFI can provide a steady income, enhance farm productivity and support sustainable food production.

Freedom to Choose Your Actions

SFI rewards farmers for actions that contribute to food production, enhance farm productivity, and protect the environment. Unlike previous years, the new offer provides the freedom to select the actions you prefer and the specific area of land you want to implement them on. There are a total of 23 actions available, covering various aspects such as soil health, moorland assessment, hedgerows, integrated pest management, nutrient management, farmland wildlife, buffer strips, and low input grassland.

You have the flexibility to combine multiple actions within your agreement, and there is no minimum land area requirement. Moreover, you can add additional actions and eligible land to your agreement each year. By completing these actions, you will receive payment every three months.

Tenant Farmers and Agreement Flexibility

If you are a tenant farmer, you do not need permission from your landlord to apply for an SFI agreement. Even if you have a shorter, rolling tenancy contract, you can still participate in the SFI scheme.

The actions within SFI have been developed in collaboration with farmers across the country, ensuring that they align with farmers' preferences and cater to various types of farms. You have the freedom to decide how to carry out the actions, as long as the desired outcomes are achieved. In case any issues arise, the SFI scheme aims to work with you to find solutions.

Annual Management Payment and Scheme Improvements

To facilitate farmers' participation in the SFI scheme, an annual management payment of £20 per hectare is offered for up to 50 hectares of land entered into the scheme, with a total cap of £1,000. This payment is intended to cover the cost of signing up and taking part in the scheme.

Since its launch, the SFI scheme has undergone significant improvements. Previously, actions were grouped into standards, and all actions within a standard had to be completed to receive payment. However, now you have the freedom to choose which actions to include in your agreement.

There are no minimum or maximum land area or hedgerow length requirements. The online application service is designed to be user-friendly, providing guidance on suitable actions for your land parcels and how they can be combined with other schemes.

Combining SFI with Other Stewardship Agreements

It is possible to have both a Countryside Stewardship (CS) or Environmental Stewardship (ES) agreement and an SFI agreement simultaneously. This allows you to combine SFI actions with other scheme options. However, please note that you will not be paid twice if you carry out the same action on the same piece of land.

The SFI Handbook provides detailed rules on how SFI actions can be combined with other actions on your land. Additionally, starting from 2024, 30 additional actions will be introduced in the schemes, and a prospectus published in January 2023 - outlines the specifics of these actions and their payment rates. Further details on new and updated actions will be available later this year.

Existing SFI Agreement Holders

If you already have an SFI agreement, you can rest assured that you won't be at a disadvantage due to entering the earlier version of the scheme. The Rural Payments Agency (RPA) will reach out to you via a letter explaining the next steps. This letter will provide all the necessary information to access the full 2023 offer. The transition from the previous version of the scheme to the new one will be made as seamless as possible for existing agreement holders.

Signing up for the First Time

For those signing up for the SFI scheme for the first time, the application process has been made clear and straightforward. If your land meets the eligibility criteria and the actions you select are compatible, you will be granted an agreement. It's as simple as that, and there is no competition involved. The agreement will come into effect starting from the month after you accept it.

Controlled Rollout and Preparation

Starting from August, a controlled rollout will begin for accepting applications into the SFI scheme. Those interested in applying should get in touch, and the RPA will guide them through the next steps and assist in the application process. Initially, applications will be managed in a controlled manner to ensure that everyone receives the necessary support and services they require.

Getting Ready

To stay up-to-date with the latest information about the Sustainable Farming Incentive, visit the GOV.UK website. The recently published SFI Handbook contains detailed information about the available actions and payment rates. Furthermore, you can seek free business advice from independent providers who specialise in helping farmers plan for the future.

It's also crucial to ensure that your contact details and land information on your digital maps are up to date through the Rural Payments service. Finally, keep an eye out for the controlled rollout of SFI applications from August and subscribe to the GWCT Farming Newsletter for important updates.

The new and improved Sustainable Farming Incentive (SFI) scheme offers farmers a greater level of flexibility and choice in selecting actions that support sustainable farming practices. By participating in the SFI scheme, farmers can receive payments for actions that enhance farm productivity, protect the environment, and contribute to sustainable food production.

Whether you're a tenant farmer or a landowner, the SFI scheme welcomes your involvement and aims to work with you to achieve the desired outcomes. Stay informed, prepare for the upcoming application rollout, and take advantage of the SFI's benefits to enhance your farm's sustainability and profitability.