CHANGES TO WOODLAND & SFI SCHEMES

Forestry Commission Announces Increased EWCO Payments

On 18 March, the Forestry Commission (FC) announced an immediate increase in payments for England Woodland Creation Offer (EWCO) grant recipients. The uplift applies to all existing and new agreement holders.

Higher Payment Rates and New Premium Options

The maximum payment per hectare rises from £8,000 to £11,600 or £12,700 for those eligible for Low Sensitivity Land Payments. The FC also introduced new Nature Recovery premium options to promote natural colonisation and biodiversity. Additional uplifts cover flood risk mitigation and public access improvements.

Extended Maintenance Payments

Annual maintenance payments now extend from 10 years to 15 years, with an extra £50 per hectare per year. This change increases total payment rates by £750 per hectare over the 15-year term.

Impact on Landowners

Despite Defra’s 45% uplift figure, these changes are unlikely to deliver major financial benefits to landowners. However, they help cover establishment costs for those using grant funding to offset woodland planting expenses.

EWCO rules remain unchanged:

• Applicants must register with the Rural Payments Agency.
• Applications are open year-round.
• Capital works must finish within three years of the start date, followed by a three-month claim window.
• Dead trees must be replaced to meet stocking density by year five and achieve canopy closure by year 20.

Defra Restricts New SFI Agreements

Defra also announced immediate restrictions on new Sustainable Farming Incentive (SFI) agreements after midnight on 25 March 2024. Existing agreements are expected to remain exempt, but confirmation is pending.

Future agreement holders cannot allocate more than 25% of land under their Single Business Identifier to these options:

• Pollen & Nectar Flower Mixes
• Winter Bird Food (on arable, horticultural and improved grassland)
• Grassy Field Corners
• Improved Grassland Field Corners
• Flower-rich Grass Margins

Payment rates and option requirements remain unchanged. Defra aims to prevent large-scale land withdrawal from food production into SFI. These measures accompany the launch of a UK-wide Food Security Index to monitor food supply and environmental resilience.

For more information regarding the recent developments in woodland and SFI schemes, see our Ceres Rural Farming Update March 2024 and read this blog.

To speak to a member of our team about what rural grants could benefit your business, email contact@ceresrural.co.uk, or contact a specific consultant – you can find details on the meet the team page of this website. You could even request for some FREE advice via Defra’s Future Farming Resilience Fund. You can do that by registering your interest here.