DEFRA is being urged to ensure that the revised Sustainable Agricultural Incentive (SFI) works to all farmers amid concerns that ambiguous guarantees and reduced payments are creating uncertainty across the sector.
Speaking at the GroundSwell Agricultural Event on July 3, Defra Secretar Steve Reed reaffirmed the government’s support for the Environmental Land Management Scheme (ELMS).
“I firmly believe that sustainable agriculture incentives and ELMS are the best tools to support farmers’ transition to sustainable food production and profitability,” he said.
Reed confirmed that the updated SFI details will be released later this summer, and the application is expected to open in the new year.
“We will work with farmers to shape the scheme and begin accepting applications in the new year,” he said.
He reiterated the government’s commitment to the principle of “public funding for public goods” and said it would be the centre of the revised scheme, with environmental outcomes, particularly water quality and biodiversity.
“Our reformed SFI can clean polluted rivers, bring wildlife back to farms and strengthen the natural foundations essential to sustainable food production, particularly to maximize the benefits of the environment around water quality and biodiversity.”
Reed also acknowledged the need to improve delivery, pledged to simplify the scheme, upgrade the digital infrastructure, and make the application process more efficient.
“We simplify SFI and help farmers take on a package of actions that will achieve more for nature. And we know that they need to upgrade their IT systems because it’s easy for farmers to submit applications.”
In response to the speech, NFU vice president David Eckwood welcomed the ongoing commitment to reward farmers for the delivery of public goods, but warned that there was an urgent need for clarity as to how the scheme actually works.
He emphasized that SFI was originally intended to be a simple and accessible scheme that supported environmental improvements without compromising food production.
“We will continue to be involved with DEFRA to discuss how this can be achieved,” he said. “If there’s openness and transparency.”
Exwood noted that the flexibility and widespread applicability of the original SFI are key to early success.
“Choice and flexibility were the reason SFI worked for farmers,” he said. “The discussion of targeting and packaging needs to be based on clear evidence.”
However, he warned that the lack of details makes planning difficult for farmers. Especially during a period when direct payments are rapidly phased out and cash flow pressures are intensifying.
“Peasans need to see more details on the future shape of SFI, so they need to make sure they have a better understanding of how it works.”
He added that for the scheme to be successful, it must be accessible and beneficial for all types of farming operations.
“To achieve that goal depends on ensuring that SFI scheme works for all farmers, regardless of size, sector or location.
“If SFIs are intended to help agriculture bring environmental benefits, exclusion of a large area of UK farmland from this scheme is counterproductive.”
