The NFU has warned Labour MPs that the divide between farmers able to access the Sustainable Farming Incentive (SFI) and those who were not has left farm businesses ‘high, dry and desperate’.
The budget for the second window of SFI was allocated in just six hours, despite warnings that the £253 million would not be enough to meet demand. It’s another blow to farm cashflows, which have been under pressure as input costs and diesel prices continue to rise.
Addressing MPs at the Great British Breakfast, during the Labour Party Conference, NFU president Tom Bradshaw called for clarity for those affected, and urged the government to open the next iteration of the SFI in early 2027. He also urged action within the Budget to strengthen farm business resilience and safeguard food security.
This would include increasing the Annual Investment Allowance to at least £5 million and extend its scope to support investments; provide funding for temporary, interest-free Keep Britain Growing Loans; ensure the Carbon Border Adjustment Mechanism does not put growers at a disadvantage when compared to imported produce; remove the changes to Agricultural Property Relief and Business Property Relief (the Family Farm Tax); and introduced enhanced capital allowances for incorporated and unincorporated businesses.
“On the steps of Downing Street, the Prime Minister committed to growth in every postcode. We know farmers and farming can deliver that, alongside food security and, until last week, I would have said delivery for nature as well,” Tom Bradshaw said.
“I must start with some stern words about SFI, echoing the concerns of many rural Labour MPs.
“The budget was exhausted in less than six hours. Farmers charged with producing the nation’s food, delivering for nature and building the resilience of their businesses have been left high, dry and desperate.
“We warned Defra for months that demand would far outstrip the funding available. Farmers want to deliver for the environment and embrace more sustainable farming, but the budget did not match that ambition. We now have SFI ‘haves’ and ‘have nots’, based purely on the speed of pressing a button. We cannot go on like this. We are calling on the government to commit to opening the next iteration of SFI in early 2027, allowing agreements to begin from 1 April.
“Having met the Prime Minister on a farm in Cornwall, I still believe there are grounds for optimism. When he said farming and food production were part of Britain’s sovereign production and manufacturing capacity, it was the strongest signal sent from Number 10 for many years.
“As the Prime Minister has recognised, 2026 has been the hardest summer for British farming in a generation. No sector has escaped. Confidence is fragile, cash flow is at crisis point and investment has suffered.
“Food security cannot be delivered through slogans. It depends on farm businesses having the confidence, stability and financial strength to keep producing. If those businesses are allowed to fail, the nation’s food security fails with them. And alongside defence and energy, what could be more important than our ability to feed ourselves?
“That is why we are asking the Chancellor to take action at the Budget.
“British farmers are ready to grow. What we need from government is confidence, certainty and a fair chance to do it.”