SFI 'haves and have nots' warning issued at Labour conference

The NFU has used the Labour Party Conference to call for SFI27 to open early next year after the latest Sustainable Farming Incentive funding window was exhausted in less than six hours.

NFU President Tom Bradshaw warned that farmers were being divided into SFI “haves” and “have nots” depending on how quickly they were able to submit an application.

Speaking at the Labour Party Conference in Liverpool, Bradshaw urged Defra to open the next iteration of the scheme in early 2027, allowing agreements to begin from 1 April.

The NFU said it had repeatedly warned Defra that demand for the second SFI26 application window would exceed the funding available.

Political pressure over the handling of the scheme has also intensified, with more than 100 Conservative MPs demanding action.

The MPs have written to Defra Secretary Dame Angela Eagle raising concerns about the design and management of the SFI and seeking changes before the next scheme opens.

The NFU is seeking answers over what it describes as a £210 million gap between the value of expiring agreements and the funding allocated to the two application windows.

According to the union, expiring agreements were worth more than £520 million, while the combined budget for the two SFI26 windows was £310 million.

It has asked Defra to explain the difference and provide clarity over funding for future agreements.

Bradshaw said: “Farmers want to deliver for the environment and embrace more sustainable farming, but the budget did not match that ambition.”

“We now have SFI ‘haves’ and ‘have nots’, based purely on the speed of pressing a button. We cannot go on like this.”

The NFU wants farmers with expiring agreements to be prioritised when SFI27 opens to help minimise gaps in environmental payments.

It is pushing for regular opportunities for other farm businesses to enter the scheme, with future funding reflecting demand from farmers seeking to deliver environmental improvements.

Other demands include allowing common land to access both SFI and Countryside Stewardship Higher Tier and publishing a clear Environmental Land Management roadmap for the remainder of this Parliament.

Ministers are also being urged to set out when farmers and growers can expect new schemes to open.

The union has requested a published Rural Payments Agency review into the barriers encountered by applicants on 22 September 2026, including details of incomplete and unsuccessful applications.

Bradshaw said the rapid closure of the latest funding window had come at an especially difficult time for the agricultural sector.

Farm businesses were facing intense financial pressure following what he described as the hardest summer British farming had experienced in a generation.

He said no sector had escaped the impact, with confidence fragile, investment under pressure and cash flow at “crisis point”.

Bradshaw argued that farming had an important role to play in the government’s ambitions for economic growth, alongside food production and environmental delivery.

“Farmers and farming can deliver that, alongside food security and delivery for nature,” he said.

He also pointed to “grounds for optimism” following a meeting with the Prime Minister on a farm in Cornwall.

Bradshaw welcomed the Prime Minister’s recognition that farming and food production form part of Britain’s sovereign production and manufacturing capacity.

But he said that recognition now needed to be matched by measures that gave farm businesses greater financial stability and confidence to continue producing.

“Food security cannot be delivered through slogans,” he said. “It depends on farm businesses having the confidence, stability and financial strength to keep producing.”

Against that backdrop, the NFU is pressing the Chancellor for measures in the October Budget aimed at strengthening farm business resilience and encouraging investment.

Its proposals include increasing the Annual Investment Allowance to at least £5 million and widening its scope to support investment in productivity, energy efficiency and water management.

Temporary interest-free Keep Britain Growing Loans are also being sought for businesses most affected by the summer’s conditions.

The NFU says the Carbon Border Adjustment Mechanism should be implemented without putting domestic food producers at a disadvantage compared with imported products.

It also wants changes to Agricultural Property Relief and Business Property Relief removed, alongside enhanced capital allowances for incorporated and unincorporated businesses.

Bradshaw said British farming was ready to contribute to economic growth, environmental improvements and national food security, but needed greater certainty from government.

“British farmers are ready to grow,” he said. “What we need from government is confidence, certainty and a fair chance to do it.”

For the NFU, the immediate priority remains securing an early opening of SFI27 and preventing farmers with expiring agreements from facing a gap in support from April.