Defra Halts New Applications for Sustainable Farming Incentive
- 17th March 2025
The recent decision by the Department for Environment, Food & Rural Affairs (Defra) to pause new applications for the Sustainable Farming Incentive (SFI) has sent ripples through the agricultural community.
This move, as reported widely across the media, has been described by the NFU as the "another shattering blow". The CLA president stated “Of all the betrayals so far, this is the most cruel”.
The SFI is a cornerstone of the Environmental Land Management (ELM) schemes, introduced post-Brexit to replace the EU's Common Agricultural Policy. Designed to reward farmers for environmentally sustainable practices, the SFI aims to promote soil health, enhance biodiversity, and improve water quality. The scheme has been pivotal in supporting farmers transitioning to more sustainable methods, ensuring that agricultural practices contribute positively to the environment.
The UK's commitment to environmental targets, including biodiversity enhancement and carbon sequestration, relies heavily on widespread adoption of schemes like the SFI. This pause could delay progress towards these goals.
The reaction from the agricultural sector has been one of frustration and disappointment. The CLA's strong condemnation reflects a broader sentiment of betrayal among farmers who have been adapting to new policies and expectations. The National Farmers' Union (NFU) has also expressed concerns, emphasising the detrimental impact on both the farming community and the environment.
Nicola Massey, Partner at Forrester Boyd, Chartered Accountants and a specialist in agricultural accounting, shared her perspective on the situation, "The government's decision to pause new SFI applications is a significant setback for our farming clients. Many have been proactive in aligning their practices with environmental standards, and this abrupt halt introduces uncertainty that could disrupt their operational planning and financial stability."
At Forrester Boyd, we remain committed to supporting our agricultural clients, offering guidance and professional advice to ensure they are fully aware of the potential ramifications of the changing agricultural policies. Do talk to us should you need any advice on this.
All data and figures referred to in our news section are correct at the date of publishing and should not be relied upon as still current.
