With the announcement that the first round of the Sustainable Farming Incentive (SFI) will open on the 30th of June, Defra has announced that £240 million will be available across both windows of the scheme, with at least another £50 million for the Countryside Stewardship Higher Tier.
£60 million has been allocated for the first round of SFI, which is open for farms below 50ha and those without a current Environmental Land Management scheme (ELMs). Defra states that if the full amount is not allocated, the remainder will be available in the second window.
In response to the announcement, Country Land and Business Association deputy president Joe Evans said: “This SFI budget announcement is welcome, but the funding may not stretch far enough. A £240 million budget is unlikely to meet expected demand.
“It is particularly important that farmers with agreements ending later this year are able to transition seamlessly into new agreements. With funding capped and application windows limited, there is a risk that some businesses will miss out, creating uncertainty at a crucial time.
“Defra must now ensure the application process runs smoothly and provide regular, transparent updates on the budget. If demand proves stronger than anticipated, ministers should be prepared to review the budget to avoid leaving viable applicants without access to the scheme.”
The NFU went further, stating that funding was failing to meet environmental ambitions, adding that while the certainty of the announcement was welcome, it came at a time when growers faced sharply rising input costs.
NFU Vice-president Robyn Munt said: “Today’s budgets for key agri-environment schemes provide welcome certainty for farmers and growers, giving them a clearer basis to plan for their businesses. However, it is becoming abundantly clear that there is a significant gap between government and farmers ambition for ELMs and the funding to deliver it. At a time when farm businesses are already hard pressed by the Middle East conflict, we urge Defra Ministers to step up funding to meet demand from farmers to deliver for the environment and food security.
“With over 13,000 Countryside Stewardship Mid-Tier schemes ending this year, there is a real risk the budget won’t stretch far enough to support those already delivering for nature to move into SFI26. These are farmers who have spent years investing in hedgerows, looking after our waterways and creating habitats. This contract with government must not be broken at such a critical time, bearing in mind the legislative targets government itself has set for environment delivery.”