Industry calls for interim farm support scheme following SFI chaos

This follows the shock decision by the Department for Environment, Food and Rural Affairs (Defra) to close the SFI to new applications on Tuesday evening, 11th March, without any warning.

The government explained the decision by saying that the SFI, which is a key aspect of the Environmental Land Management scheme (ELMs), rewarding farmers for actions that benefit biodiversity and the environment, had exhausted its funding.

The NFFN said that its proposed interim SFI would provide targeted assistance to farmers most in need, offering a streamlined version of environmental support until a more comprehensive solution is available.

This interim measure would help stabilise the financial position of farmers who cannot afford to wait 18 months for the next round of government support.

The organisation has also criticised the SFI’s design and administration, as too much of the budget has gone to unambitious actions that have delivered little for the environment.

READ MORE: Farmers ‘betrayed again’ as Defra stops SFI applications

Farmers in need for ‘targeted approach’

NFFN CEO Martin Lines said: “The government needs to act swiftly to introduce this interim support scheme. We’re not expecting a fully-fledged solution, but rather a targeted approach to help those farmers who need it most and cannot wait 18 months for support.

“Many of the problems that have led to the abrupt closure of the SFI were predictable and should have been foreseen by both ministers and civil servants. The way this closure has been handled has left thousands of farmers high and dry, with many now in a really difficult financial position. The lack of prior warning was completely unacceptable. Lessons must be learned from this.”

Mr Lines added that the abrupt closure of the SFI has also exposed “fundamental flaws” in its design.

“It’s now clear that broad and shallow schemes do not deliver for farms or nature. Any new scheme must truly deliver on the government’s key targets, such as access to nature, natural flood management, the restoration of our landscapes and biodiversity, as well as guarantees of food availability,” he continued.

The NFFN also warns that the sudden withdrawal of the SFI application process has severely damaged trust between farmers and government at a time when relations were already strained.

The network said the government must recognise that farmers need certainty to make long-term plans for managing their land, and the systems supporting them cannot keep changing rapidly or be paused.

Mr Lines added: “Farmers are ready and willing to deliver many of this government’s key priorities, but this will only happen with timely and consistent support.”

Farmers face uncertainty and serious concerns

Simon Britton, head of agri-consultancy at Knight Frank, said that the news of SFI closing for new applications is “deeply frustrating” for farmers who were planning on this financial support.

“Many now face unexpected cash flow pressures, while others with applications delayed by agency queries have been unfairly excluded. A scheme intended to provide stability during the transition has instead created further uncertainty, raising serious concerns about the government’s approach to agricultural policy,” the expert added.

Mr Britton said that looking ahead, the industry needs more clarity on the next phase and intended direction of SFI.

He continued: “Early indications suggest it will be more targeted towards the environment and less favourable land for food production. A positive could be this will go some way in supporting struggling upland farmers but could mean arable and lowland livestock businesses need to reconsider their expectations.

“Until details emerge, farmers planning for the next six, 12 or 18 months should discount SFI from their financial strategy and focus on building resilience through cost control and efficiency.”

The Knight Frank expert added that the immediate priority for affected businesses is to review cash flow and adjust plans accordingly.

“Identifying cost efficiencies will be a priority, and exploring alternative options, such as the Countryside Stewardship Higher-tier scheme – may be necessary, though it comes with limited availability and longer lead times.

“Since the capping of the Basic Payment Scheme (BPS), cash flow has become a growing challenge for many farm businesses, and this latest disruption only reinforces the need for careful financial planning.

“At Knight Frank, we continue to advise farmers to focus on what they can control. Government policy remains unpredictable, but businesses that understand their cost base, manage cash flow effectively and improve efficiency will be best placed to navigate whatever comes next.”

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