FARMING POST-BPS: WHAT'S NEXT?

Defra Clarifies Future of ELMs and Opens New SFI Round

Defra has provided much-needed clarity on the future of Environmental Land Management schemes (ELMs) and agri-environmental funding. At the same time, another round of the Sustainable Farming Incentive (SFI) has opened for applications. This round includes several easy wins for farmers, such as funding for Nutrient Management Plans and Integrated Pest Management Plans. Agreements will run for three years and payments will be made quarterly in arrears, a clear shift from the five-year Countryside Stewardship (CSS) agreements, which paid annually.

CSS Capital Grants Still Available

Although the application window for existing CSS management agreements has closed, CSS Capital Grants remain open. These grants offer a wide range of financial support through options such as Concrete Yard Renewals and livestock-focused improvements. Importantly, farmers can access these grants without committing to other CSS or SFI management agreements. This flexibility helps businesses stay ahead of legislative changes.

Capital Grants and FFRF Support

As government pressure grows to protect ecosystems and reduce emissions, capital grants can bridge funding gaps and enable essential changes. Farmers can also access the Defra-funded Future Farming Resilience Fund (FFRF), which provides free advice to future-proof farm businesses. Consultancy under FFRF can include:

• Guidance on grant schemes to improve budgeting in the post-BPS era
• Farm emissions audits to prepare for net-zero targets
• Biodiversity Net Gain (BNG) viability assessments, including baseline estimates and local supply-demand analysis

BNG Creates New Income Opportunities

The introduction of BNG legislation in January 2024 offers farmers a unique income stream. By providing land and management services to developers, farmers can earn between £20,000 and £35,000 per unit of net gain. Approximately seven units per hectare are available for converting arable fields to tussocky grasses, subject to location and prior condition.

Adapting to a Post-BPS World

The end of BPS payments adds pressure on farmers to diversify, cut costs, and refine practices. These areas can all be reviewed through FFRF support. Combined with geopolitical uncertainty and market volatility, the future of British agriculture, and farm profitability, remains challenging.

Ceres Rural’s Recommendation

Ceres Rural urges farmers to seek guidance now. Taking advantage of existing and upcoming agri-grant funding will help minimise risk, supplement income, and offset costs. As a Defra-approved FFRF provider, Ceres Rural can deliver this advice free of charge for many farmers.

Register your interest online today at here. Alternatively, email futurefarming@ceresrural.co.uk or call 01223 679 679.