The government has been forced to reconsider its decision to abruptly close the 2024 Sustainable Farming Incentive (SFI) scheme, following legal pressure from the NFU.
Defra has today reversed its decision on the closure of the scheme, allowing farmers who began an application within two months of 11 March 2025, but had not yet submitted it, to now complete the process.
It comes after the NFU coordinated a potential legal challenge on behalf of a group of its members, arguing that Defra acted unlawfully by shutting down the scheme without prior warning.
The union claimed that thousands of farmers were left in limbo with partially completed applications, and that some had suffered financial losses after investing in anticipation of joining the scheme.
More than 3,000 farmers had already begun applications when the scheme was unexpectedly scrapped, the NFU said, adding that these cases should still be processed.
While the government's move on Monday (12 May) offers relief for thousands of affected farmers, it has been criticised for not going far enough.
The NFU said that restrictions would still apply regarding who could apply and what elements of the scheme they could access.
The change follows legal pressure from a group of farmers, backed by the NFU, who wrote to Defra Secretary Steve Reed outlining their intention to challenge the scheme’s abrupt closure.
Central to their argument was a prior commitment from Defra that any closure would be preceded by six weeks’ notice—a promise that was not upheld.
This assurance appears to have played a key role in prompting the minister to reconsider the original decision, with an acknowledgement that an error had been made.
Responding to the news, NFU President Tom Bradshaw said: “The government’s abrupt and wholly unacceptable decision to close the scheme was always wrong.
"While it’s good to see an acknowledgement that the decision to close the scheme was flawed, we are disappointed by the constraints imposed which will still leave many farmers unfairly disadvantaged.
“This is a really critical time for the farming industry, and while today’s announcement falls short of what our members deserve, this issue highlights the NFU at its very best, working with its members to stand up for what we believe is right.”
The abrupt closure of the SFI has left many farming businesses facing significant financial uncertainty, according to a recent poll.
Surveying over 300 farmers, it revealed the widespread frustration and disruption caused by the unexpected policy change announced last month.
Nearly 95% of respondents told the Country Land and Business Association (CLA) they had planned to apply for more options under the expanded SFI scheme before it was suddenly withdrawn.
Of those surveyed, over half (54%) were already in an SFI agreement, while 40% were not yet enrolled but had intended to join under the updated offer.
Only a small minority—4.5%—reported that they were satisfied with what they had been able to achieve under the scheme prior to its closure.
Victoria Vyvyan, CLA president, said: “We’ve been lobbying for the government to take note of the thousands of farmers who were mid-application when the SFI scheme suddenly shut, and we’re glad they have now listened.
“It’s a limited amount of money, but it does take a bit of the sting out of the suddenness of the closure.
“The way for Defra to avoid such a shock again is to be open and transparent, and work with industry to design the revised scheme.”
