The New Sustainable Farming Incentive – What Is It, What’s New and Should You Apply?

As some of you may be aware, the new guidance for the Sustainable Farming Incentive (SFI) was recently published – at 156 pages long, it makes for light bedtime reading!  But fear not, we have summarised the most important points for you in this article.

First of all, what is the SFI?
It is a new payment scheme introduced by the RPA.  Not unlike the Countryside Stewardship Mid Tier agreements, you can choose different land management options.

But then, what are the differences to a Mid Tier agreement? 
The first difference is the duration of the agreement – instead of 5 years, SFI agreements will be for 3 years only, offering more flexibility.  What really makes the scheme flexible is the fact that you can add options and land each year on the agreement’s anniversary and reduce rotational options by up to 50% of the land entered in the option in year 1.  This means, no more trying to find fields that are exactly the same size in order to satisfy the land area requirements set out by your Mid Tier agreement!

In addition to the added flexibility of the agreement, the options themselves are much less restrictive than Mid Tier options, even when they have similar titles and payment rates.  For example, the option SAM3 – Herbal leys pays £382/Ha, the same payment rate as GS4, but does not prescribe which seed mixture you have to use for your herbal ley nor when you may cut it.

While the SFI does not offer all the options that a Mid Tier agreement currently does, there is a good choice of options, especially for grassland farmers.  This includes a few options not available in the Mid Tier catalogue.

On top of your land and hedgerow management options, you can claim for the following things with an SFI:

• SFI management payment – £20/Ha entered into the agreement (up to 50Ha)
• Assess soil, test soil organic matter and produce a soil management plan - £5.80/Ha + £95/agreement
• Assess integrated pest management and produce a plan - £989/year
• Assess nutrient management and produce a review report – £589/year

Are you already in a Mid Tier agreement?  You may still be able to apply for an SFI on land that you haven’t entered, and you may well be doing things already that you can be paid for as part of the SFI.

As long as there is no double funding, you can also apply on land that is already in a Mid Tier agreement. We have some clients aborting their 2023 Mid Tier application (Deadline 18^th August) and opting for the more flexible less restrictive SFI Options which pay equally as well. What are you doing to replace your lost BPS?

Applications are set to open in August, get in touch with Ellice on 07944 680469 or e-mail ellicehahne@fcgagric.com to discuss how the SFI can benefit you and your farm.