Sustainable Farm Incentive (SFI)
Promised the Earth Incentivisation Carbon Offsets New Landscape Promised the Earth
April 2024 Govenment introduces area limits on 6 of the 9 SFI actions to save food production. Applications for these exceeding 25% of farm land will be rejected from today. (This was because some larger farmers were just going for SFI - guaranteed- versus growing crops with random market prices.)
Then a month later in May 'Expanded and Imporved SFI offer' "SFI offer will be open to new entrants for the first time and will initially comprise 102 actions, designed in collaboration with the agricultural sector, including over 20 new options to support more sustainable food production, – with payments for precision farming, agroforestry, a new and expanded offer for upland farmers and more actions for tenants on short-term contracts. "
Jan 2023 following Minister announcement, Strutt & Parker: "Improving the environment shouldn't be left to the few people who can afford to do it, so an increase in payment rates is a step in the right direction. However, it seems unlikely that a 10% increase in CSS management payments or the extra £1,000 on offer through the SFI will deliver a step change in uptake given the costs of delivery.
Feb 2022 Defra said: "The Sustainable Farming Incentive focuses on making agricultural activities more sustainable and will pay for actions that all farmers can choose to take. This scheme will pay for actions that can be taken at scale across the whole farmed landscape in order to have the most impact. This includes reducing inorganic fertiliser and pesticide use, taking care of our soils and improving farmland biodiversity, water quality and carbon sequestration. "
I'm glad that is clear now.
Only 224 farmers received SFI payments 2022 - just 0.2% of those receiving old BPS payments.
"Our aim is for at least 70% of farmers, covering at least 70% of farmland, to take up Sustainable Farming Incentive agreements."
They may have a job when farmers will get only 10-20% of what they had originally in CAP payments and it is difficult for them to know what to do, and there are no agreed metrics to demonstrate improvement - rather than mere regulatory compliance.
Wales go their way Rural Affairs Minister Lesley Griffiths unveiled her latest proposals for the Sustainable Farming Scheme (SFS), providing a real direction of travel.
DEFRA outlines SFI plans Eustice @ CLA. "For the arable and horticultural soils standard, he said farmers will be paid between £22 and £40 per hectare, depending on the activity level. It focuses on soil health, because the health of our soils is critical to improving both biodiversity, water quality and the production of a healthy crop. "We will pay a more generous payment rate than previous EU schemes. There will be fewer rules and more trust." hmm
Using Fisher German’s calculation tool and a 150-hectare farm as an example, the annual BPS payments are likely to reduce something like this over time: 2020 = £34,200 (£92 per acre/£228 per hectare) 2023 = £22,709 (£61 per acre/£151 per hectare) 2027 = £4,583 (£12 per acre/£31 per hectare) 2028 = £0. By my calculation, that means farmers, conforming to SFI, will get 1/10 of what they did before.
CLA Guidance "The approach to SFI looks promising – it is flexible and can be adapted to individual farms, and Defra has promised to revolutionise their approach to monitoring, inspections and penalties."
ELMS
The proposed Environmental Land Management scheme (ELM) – makes an explicit commitment to investment in soils - goes much further than anything foreseen under the EU’s Common Agricultural Policy (CAP). This approach is being trialled under the Sustainable Farming Incentive (SFI) – the bridge between current payment schemes and ELM – where a specific £ per hectare has been proposed for farmers who maintain and improve the condition and structure of their soil in horticulture, arable and grassland.
The scope of SFI now focuses largely on soil management, whereas the initial scope also included integrated pest management, nutrient management and livestock management. Defra acknowledges some important delivery risks remain, particularly around staff resources and lack of detailed planning beyond 2021.
ALL 8 Standards inc Arable & Horticultural LAND & A&H SOILS
Eustice said at Groundswell "Farmers will see an even three-way funding split between the UK's future farming schemes from 2028. The new Sustainable Farming Incentive, Local Nature Recovery and Landscape Recovery Schemes will help farmers deliver environmental projects. It is the most significant change to UK farming and land management in over five decades. He also reaffirmed his aim that 70% of farms will take part in environmental land management schemes by 2028. “Everyone recognises that we need to change our approach to tackle the environmental challenges both on climate change, but also on biodiversity. "Leaving the EU gives us a great opportunity to show the world how we can do this, through a seven year transition to reorder farming incentives so that we support a regenerative agriculture."
At the Cereals Event he said that farmers could be rewarded up to £70 / hectare for actions to improve their soil (referring to SFI) and that “Farmers will also be eligible for locally-specific and landscape-level schemes through Local Nature Recovery and Landscape Recover", adding "Soil health is the key to delivering our targets on the environment and improving farm profitability.”
SFI
Stepping Stone. Sustainable Farming Incentive is being proposed as bridge between present BPS and ELMS future. But very vague. Each nation may do different. Scotland to maintain BPS till '24, NI may take different direction. Defra yet to explain. SFI takes simplest actions from ELMS tier 1 - like take action to conserve soil and stop pesticide runoff. Green groups say this isn't public funds for public goods, as this just rewards what should do anyway. Nor does it prepare for ELMS, with role of Countryside Stewardship schemes unclear.
The Sustainable Farming Incentive pilot will build on 'what we’re learning through the tests and trials,' which started in 2018. Tests and trials focus on trying out individual parts of the future scheme, like land management plans or different payment methods – whereas the pilot will test a working version of the scheme from start to finish. Think of a manufacturer designing a new car – they might test things like the brakes and gearbox separately (tests and trials), before combining them into a driveable car for road testing (piloting). "We want the Sustainable Farming Incentive to be straightforward enough that a farmer can make an application and start their agreement just by using guidance on GOV.UK, rather than needing separate advice from a land agent or adviser. "
How will farmers have the skills and knowledge to make a business plan to access these funds as we do know what is to be rewarded nor how.it will be measured?
SFI "will pay farmers to take actions which deliver desired environmental outcomes, such as boosting levels of organic matter in soils or planting hedgerows to provide year-round food, shelter and breeding cover for birds and insects.
Dr Aglionby (Chair of Uplands Alliance) said she "was disappointed that a full list of actions to be paid for will not be published until June (done in August). The acid test is will farmers be excited and engaged by the offer to enhance their delivery of public goods, or will they conclude they are better off keeping their freedom and ‘going farming". The easier, more straight forward thing to do is to go down the route of maximising production and intensification, which is the antithesis of what Defra is trying to achieve.
Update on SFI pilot
In total, 938 farmers completed an application. Defra wanted several hundred and had been aiming for 1,000 so this number of applications is pretty much bang on our target for a meaningful and useful pilot and there seems to be a representative mix.
Payments will start in the spring. Defra will start off by paying quarterly, with intention to pay 3 months after the agreements start, so the sooner they are agreed, the sooner the money will be paid out.We designed the standards to be simple and not require too much support or advice, however around 700 farmers and their agents sought help from RPA.