Sustainable Farming Incentive (SFI) update: new actions for 2024
NRM
A controlled rollout of the new Sustainable Farming Incentive (SFI) offer for 2024 was announced by Defra at the end of May. Farmers will now be able to pick and mix from 102 new actions, which have a range of payment rates and expand the options open to them.
Any farmers who are interested in joining the 2024 scheme can submit their interest to the Rural Payments Agency (RPA)—click here to submit an expression of interest.
What does this update mean for you?
New actions for 2024
Some 50 options that were originally part of the Countryside Stewardship (CSS) Mid-Tier scheme have now been combined into the SFI to simplify the application and payment process. The agreement terms of many of the original actions are reduced from 5 to 3 years in the hope that more tenanted farmers can get involved. In fact, the bulk of the 102 options are designed to be implemented for 3 years rather than 5 years.
The Higher Tier Scheme, which includes more ambitious options for nature recovery, is going to remain a standalone scheme within Environmental Land Management. More details are due to be published later in the summer.
Defra is also now allowing new entrants to farming, who previously have never claimed BPS, to enter the 2024 scheme, and if you already have an SFI or Mid-Tier stewardship agreement in place, then you can quickly make the most of the new options available. However, you do have to create a new agreement: you aren’t allowed to add new options to your current agreements.
A deeper understanding of the new actions
The new SFI scheme for 2024 has focussed on actions that encourage more sustainable approaches to food production, including support for precision farming actions and the adoption of agroforestry. Agroforestry encourages more biodiversity across farmed land, increasing the benefits for nature, and farmers will benefit from the production of two or more crops on the same parcel of land, meaning additional income.
Those farming in the uplands are also being treated to an expanded choice of options covering the intensity of how they manage livestock across moorland.
Interestingly, climate change mitigation options are also included in the 2024 offer. These are intended to help businesses cope with the risk of flooding and the challenging weather conditions we now more often experience in the UK.
The options featured in the 2023 SFI agreement are also available in the new 2024 scheme. For example, CSAM 1 (analysing soil for organic matter and creating a soil management plan) still features. The new precision farming option (PFR1 worth £27/ha) requires soil analysis from zonal areas of the field, which forms the basis of the variable rate application map. The soil analysis must cover a minimum of pH, P, K and Mg—and remember, NRM can help you with this.
Defra is also introducing a number of what they are coining “Endorsed Options”. These are more involved and require farmers to take advice from a professional, and you must also obtain permission from either Natural England or Historic England. This should ensure that the action is suitable for the location you want to apply it to. There is only one endorsed action (priority species-rich grassland, worth £646) being included in the initial 2024 offer, but more are coming online later in the year with guidance on how to apply.
A cap on certain options
Option flexibility has always been at the centre of the SFI schemes, intended to encourage mass uptake from the farming community. Unfortunately, some unintended consequences have arisen.
One key issue is that large areas of land are being entered into a few options that pay well but take land out of production. Therefore, Defra has decided to cap the land area that can be applied to certain options within agreements, including grassy field corners, flower-rich grass margins, and/or pollen and nectar mixes. If established poorly, or introduced en mass, these options lead to very little environmental benefit and take land out of production.
A further four more options are likely to be added to this list. Defra has this under review.
Click here to check which options are capped (in section 1.3: SFI actions with a limited area).
How NRM can help
NRM offers a range of analysis packages which will ensure that you meet the criteria of CSAM 1, CNUM1 and PRF1. Contact us directly by clicking here or speak to your local adviser for guidance on SFI and all its benefits.
For more on SFI 2024:
SFI scheme information: expanded offer for 2024 – GOV.UK (www.gov.uk)
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