THE SUSTAINABLE FARMING INCENTIVE: WHAT’S BEEN AGREED FOR 2022

The Sustainable Farming Incentive (SFI)

Farmers can apply for the Sustainable Farming Incentive (SFI) next year. Defra has confirmed details of the first two soil standards and an annual animal health and welfare review. Charles Garrard explains what you need to know.

So what can I expect from SFI?

The first SFI standards will be available to any farmer in England who is eligible for the Basic Payment Scheme. They are worth up to £40/ha. This follows lessons learned from a pilot scheme involving almost 1,000 farmers.

The SFI starts with smaller offerings for a wider audience. It focuses on soil health at an introductory or intermediate level. Eventually, it will include eight or nine standards with three ambition levels: introductory, intermediate and advanced.

Farmers can layer the new soil standards on top of existing environmental measures. Defra recognises overlaps where the same parcel of land is involved and has made allowances.

Defra aims to have 70% of farmers in the scheme by 2028. The first standards were chosen because they fit around Countryside Stewardship and all farmers should be able to do them.

Can I have an SFI where I have a CSS agreement?

Farmers with an existing agri-environment scheme agreement can take part in the SFI. However, they won’t be paid twice for doing the same thing. Choosing options will be about complementing, not duplicating, existing schemes.

What can I do to prepare my business now?

Many farmers and growers have already started changing their production systems. Most changes involve costs. It’s encouraging to see financial help and flexibility to introduce them and reach the desired outcome.

How long will agreements last?

SFI agreements last for three years, not five. Farmers can amend them every twelve months, adding extra land parcels or increasing ambition levels. The main advantage? As new standards become available, farmers can include them in an existing three-year scheme. They won’t have to wait until the agreement ends.

This flexibility gives early adopters confidence. They won’t be penalised for acting early and will have greater control of their agreements.

Farmers can choose how many fields to enter and apply different ambition levels to different parcels. Quarterly payments are another plus point.

How do the options look in practice?

Defra unveiled two soil standards at the start of December. A third, advanced soil standard will be added in 2023. The standards cover arable and horticultural soils, improved grassland soils and moorland/rough grazing. Livestock farmers will also receive funding for an annual vet visit to review health and welfare.

Arable and Horticultural Soils

• Introductory level: £22/ha
• Intermediate level: £40/ha

For both levels, farmers must:

• Test for soil organic matter
• Develop a soil management plan
• Ensure winter cover on at least 70% of the land entered (including autumn-sown crops and weedy stubbles)
• Apply organic matter to one third of the area entered

At the intermediate level, a sown green cover crop must cover 20% of the land over winter.

Grassland Soils

• Introductory level: £28/ha
• Intermediate level: £40/ha

For both levels, farmers must:

• Test for soil organic matter
• Develop a soil management plan
• Maintain at least 95% green cover over winter

At the intermediate level, herbal leys must be established and maintained on 15% of the land entered.

Moorland and Rough Grazing

• Introductory level: £148/agreement per year, plus £6.45/ha

Farmers must assess their moorland by checking soil types, peat depth and associated vegetation.

Any disappointments?

Defra seems to have listened to feedback. The SFI is more accessible and less prescriptive than previous schemes. The only disappointment? The Advanced Soil Standard isn’t available for the first agreements, despite its popularity in many pilot schemes.

If the SFI doesn’t appeal, Countryside Stewardship is still available. Applications can be made until 2023 before it is replaced.

Countryside Stewardship

Some Mid-Tier Countryside Stewardship Schemes went live in 2016. The scheme is more rigid and prescriptive than SFI. However, it can meet many environmental goals and provide a reasonable financial return if well-constructed. It may suit some farms more than others. It’s about finding the right solution for your farm. If you’re in doubt, seek independent advice.