Update: The Sustainable Farming Incentive in England and the Sustainable Farming Scheme in Wales

Author: Alli Grundy

6th February 2024

NRM

Agriculture

Defra recently announced payment increases associated with some 2023 Sustainable Farming Inventive (SFI) actions for 2024. New soil actions focused on improving soil health, structure, organic matter, and biological activity have also been introduced.

As we know, the purposes of these actions are, but are not limited, to:

1. Improving the long-term productivity and resilience of the soil to benefit food production
2. Enhancing water quality
3. Increasing biodiversity
4. Improving climate resilience.

For the new actions, Defra consulted with external stakeholders, including farmers and agricultural organisations involved in how land is managed for food and the environment.

The purpose of the SFI update is partly to improve the offer already available to farmers by making some of the existing options more achievable and attractive.

The new soil actions being introduced are for farmers who are engaged or want to engage in no-till cultivations, as well as for those keen on establishing multispecies cover crops in spring/summer or autumn/winter. Click here to find out more about the payment rates for these specific new actions.

Update to scheme payment rates

Defra has increased payment rates by 10% on average for 2024 to reflect the current market conditions. For some of the actions, such as establishing species-rich grassland, the increase is fairly substantial. A good aspect of this is that if you already have a ‘live agreement’ then the payment rate uplift is automatically applied (subject to applicable actions), meaning you don’t need to do any extra admin!

Defra is also thinking about tenant farmers, and hopes that reducing the agreement terms for some actions to 3 years will deliver more flexibility and ensure that farmers on shorter term tenancy agreements can get involved.

Some actions that have had payment increases include:

• Soil testing and planning (SAM1) increasing from £5.80/ha (£95/agreement/year) to £6.00/ha (£97/agreement/yr)
• Nutrient management planning (NUM1) from £589 to £652/yr
• Integrated pest management (IMP1) from £989 to £1129/yr.

Click here to see all 2023 actions that have seen a payment rate increase for 2024. The higher payment rates will be paid for existing SFI Pilot and 2023 agreements, backdated to the start of their current agreement year and for new applications received in 2024.

New actions to be introduced summer 2024

This summer will see the introduction of no fewer than 50 new actions. Some are mentioned above, but others include activities such as precision farming for the first time. This is to encourage the better targeting of nutrients and pesticides and to minimise the financial cost associated with these inputs.

The Precision Farming (PF) actions involve using technology to better target farm activities that reduce inputs and their cost and therefore benefit the environment by improving water and air quality. Defra is introducing four new actions and supplements to fund precision farming approaches, and it’s good to know that farmers can also apply for capital item funding under the farm equipment and technology fund (FETF).

Adopting the PF approach to variably apply nutrients to arable, horticultural and grassland attracts a payment rate of £27/ha over an agreement period of 3 years. Applying herbicides based on remote sensing technology attracts a payment rate of £43/ha over an agreement period of 3 years, and there are also actions that involve the use of mechanical weeders (robotic or not). To find out more about the payment rates of these new actions and how you can apply for capital grants, click here.

Actions centred around agroforestry will also make an appearance in the SFI for the first time.  An example of agroforestry is where trees are deliberately combined with broad acre crops. The benefits of agroforestry are far reaching.

It can:

• Reduce the risk of flooding and soil erosion
• Provide shelter for nature, livestock and crops
• Improve water quality
• Improve air quality
• Increase carbon sequestration
• Increase biodiversity.

Farmers can also access funding for existing capital items (i.e. fencing and tree guards), but Defra is looking to introduce new capital items to the list, so stay tuned.

Defra hopes that there is something for all farm types in the SFI for 2024. Ultimately, it is hoped that the new actions and increased payment rates of existing actions will encourage more farmers to join SFI in England.

What about the Sustainable Farming Scheme in Wales?

If you farm in Wales, you have a chance to learn more and contribute your views on the proposed Sustainable Farming Scheme (SFS), which is being introduced in 2025 by the Welsh government.

A number of engagement events have already been run across Wales, but three more remain on the 6^th, 9^th, and 14^th February. All are held in different regions, so visit the Welsh government website to learn where these events are, what time, and how to book click here.

How NRM can help

The devil is always in the detail and, with most of the SFI soil actions, analysis is a requirement of meeting the payment criteria.

NRM analyses soil for nutrients and soil organic matter content. Please get in touch if you want to order analysis kits or speak to your local adviser.

References

Spotlight on new actions for arable and horticulture farmers – Farming (blog.gov.uk)

SFI 2023 and SFI Pilot payment rate changes from 1 January 2024 – GOV.UK (www.gov.uk)

Technical annex: The combined environmental land management offer – GOV.UK (www.gov.uk)