Sustainable Farming Incenitive (SFI) to launch in June

DEFRA have confirmed that the Sustainable Farming Incentive (SFI) will launch in June 2022. We will continue to publish more detailed information once the scheme details are released. Here is an overview of the first phase and what to expect in the future.

The Sustainable Farming Incenitive could be very valuable for some farmers and landowners - but it will be important to fully understand your options and the rules.

Written by Matthew Sawdon April 14, 2022

What is the SFI?

The SFI is the first phase of three new environmental schemes that will be available under the Environment Land Management (ELM) scheme. The other two schemes are Local Nature Recovery and Landscape Recovery

The ELMs is focused on the principle of “paying public money for public goods”.

When will the application window open?

The application window will open in June 2022 and will operate on a rolling application window. There will be no application deadline.

All applications are to be made online via the Rural Payments Service.

How long is the agreement and what will be the payment frequency?

An SFI agreement will last 3 years and you will need to have “management control” for the entire duration. Payments will made on a quarterly basis, with he first payment made 3 months after your agreement commences.

What will be available under the 2022 SFI?

Initially, 3 standards will be available:

Arable and horticultural soils standard – introductory and intermediate level
Improved grassland soils standard – introductory and intermediate level
Moorland standard– introductory and additional payment

What will be the payment rates?

Arable and Horticultural Soils Standard	Intermediate Level	Advanced Level
Payment rate	£22/hectare	£40/hectare
Soil Organic Matter (SOM) test	Every 5 years	Every 5 years
Soil assessment	Yes	Yes
Soil management plan	Yes	Yes
% of winter cover required	70%	70%
Addition of organic matter (at least once in 3 years)	1/3 of area	1/3 of area
Multi-species green cover	NA	20% of area

Improved Grassland Soils Standard	Introductory Level	Intermediate Level
Payment rate	£28/ha	£58/ha
Soil Organic Matter (SOM) test	Every 5 years	Every 5 years
Soil assessment	Yes	Yes
Soil management plan	Yes	Yes
% of winter cover required	95%	95%
Improving soil health through herbal leys	NA	15% of area

You can read more about the requirements for each standard in our previous blog post here

Who can apply?

The scheme is open to BPS claimants only, who have a minimum eligible area of 5 hectares and hold 5 or more BPS entitlements on the 16 May 2022. Your busines does not need to claim BPS in 2022 or to have received BPS payments historically.

Can I apply for SFI if I am already in a Countryside Stewardship agreement?

Land that is already managed under an existing agri-environment scheme, for example, Countryside Stewardship, could be eligible for the SFI provided that you aren’t applying to be paid twice for the same options.

What extra standards can we expect as the scheme evolves?

In 2023 we can expect the addition of:

Nutrient management standard
Integrated pest management standard
Hedgerows standard
Advanced levels of the 2 soil standards

In 2024 we can expect the addition of:

Agroforestry standard
Low and no input grassland standard
Water body buffering standard
Farmland biodiversity standard
Intermediate and advanced levels of the moorland standard

In 2025 we can expect the addition of:

Organic standard
On-farm woodland standard
Orchards and specialise horticulture standard
Heritage standard
Dry stone walls standard

Do I need to submit an annual claim/declaration?

Yes, agreement holders will need to submit an annual declaration.

Do I have to include the whole farm at the same standards level?

No, you can pick and choose which fields to put into an SFI scheme and you are able to have an introductory standard on one field and an intermediate standard on another.

Want to find out more?

Please give us a call on 01233 506201 or send us a quick email

Matthew Sawdon

Director

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Sophie Walker

Rural Surveyor

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