The Sustainable Farming Incentive (SFI) is a scheme set up to help farmers with the phasing out of the Basic Payment Scheme (BPS) and the Rural Payments Agency’s transition away from direct payments. The scheme has progressed and evolved since its launch in 2023 and indeed has again undergone further changes since the change in UK Government.
The scheme is very similar to the old stewardship schemes, with payments linked to options chosen. SFI agreements typically run for three years and can be made up of a variety of actions, although some options run for five years. To aid cashflow, payments are made automatically on a quarterly basis in arrears, with the first payment being made in the fourth month following the agreement’s start date, and unlike BPS, there is no deadline for submission, however, an annual declaration form is required.
The most recent alteration to the “expanded” SFI 2024 offer which was unveiled in July is there are now 102 actions to choose from, with the pick and mix approach continuing so that farmers can tailor agreements accordingly. These actions are a mix of 22 that were originally rolled out under the 2023 version of the SFI, 57 that have been brought forward from the Mid-Tier Countryside Stewardship, and the further 23 new actions.
Following the initial controlled roll-out, applications are now open to all eligible entrants.
Two changes of note we have seen since the alteration in Government is to two of the more popular options being CNUM3 legume fallow and CSAM3 herbal ley, can now both either be rotational or static.
There have been further changes and tightening up of prescriptions under numerous options and if you want advice on utilising these options on building a whole farm scheme, as well as commentary on the expected input costs and likely returns for the business, please don’t hesitate to contact your local Howkins & Harrison office.
The capital grant scheme has recently been temporarily closed for new applicants due to an overwhelming demand for some Capital Grants. We will be keeping a close eye on this and hope to see it re–open early in 2025. Capital grant funding is to help landowners and farmers improve the productivity and efficiency of their holding with options available towards the costs of fencing, livestock, roads and tracks, and even concrete yard renewal. If you are interested in this scheme please do not hesitate to contact your local Howkins & Harrison office and we will let you know if and when the scheme re-opens.
By Andrew Pinny
