Defra is being urged to ensure that the revised Sustainable Farming Incentive (SFI) works for all farmers, amid concerns that vague assurances and shrinking payments are generating uncertainty across the sector.
Speaking at the Groundswell farming event on 3 July, Defra Secretary Steve Reed reaffirmed the government’s support for Environmental Land Management schemes (ELMs).
“I firmly believe the Sustainable Farming Incentive and ELMs are the best tools to support farmers’ transition to sustainable food production and to profitability,” he said.
Mr Reed confirmed that more details on the updated SFI will be released later this summer, with applications expected to open in the new year.
“We are working with farmers to shape the scheme, which will start accepting applications in the new year,” he said.
He reiterated the government’s commitment to the principle of “public money for public goods” and said environmental outcomes—particularly around water quality and biodiversity—would be central to the revised scheme.
“Our reformed SFI will maximise benefits for the environment, particularly around water quality and biodiversity, so we can clean up our polluted rivers, welcome wildlife back to farms, and strengthen the natural foundations that are vital to sustainable food production.”
Mr Reed also acknowledged the need to improve delivery, pledging to simplify the scheme and upgrade digital infrastructure to make the application process more efficient.
“We will simplify the SFI and support farmers to take on packages of actions which, when done together, achieve more for nature. And I know we need to upgrade the IT system so it’s easier for farmers to submit applications.”
Responding to the speech, NFU Deputy President David Exwood welcomed the continued commitment to rewarding farmers for delivering public goods, but cautioned that urgent clarity is needed on how the scheme will work in practice.
He stressed that the SFI was originally intended to be a simple, accessible scheme that supported environmental improvements without compromising food production.
“We will continue to engage with Defra to discuss how this can be achieved,” he said, “provided there is openness and transparency.”
Mr Exwood noted that the flexibility and broad applicability of the original SFI were key to its early success.
“Choice and flexibility were why SFI worked for farmers,” he said. “Any discussion about targeting and packaging must be based on clear evidence.”
However, he warned that the lack of detail is making it harder for farmers to plan—particularly at a time when direct payments are rapidly being phased out and cashflow pressures are intensifying.
“Farmers now need to see detail on the future shape of SFI so they can better understand how it will work for them.”
He added that for the scheme to succeed, it must be accessible and beneficial to all types of farming operations:
“Achieving that goal depends on making the SFI scheme work for all farmers, regardless of size, sector, or location.
"If the aim is for SFI to help farming deliver environmental benefits, then excluding large areas of English farmland from the scheme would be counterproductive.”
