Defra caps land farmers can put into Sustainable Farming Incentive

NFU says development of the Sustainable Farming Incentive scheme is “crucial” to ensure an agricultural sector that is resilient and thriving

The UK government has announced measures to ensure food production remains the primary purpose of farming. 

Defra is to introduce limits to the amount of land farms can place into the Sustainable Farming Incentive (SFI) scheme. In future, a maximum of 25% of a business’s land can be taken out of food production and placed into the six SFI categories.

The categories (known as ‘actions’) are flower-rich grass margins; pollen and nectar flower mix; winter bird food on arable and horticultural land; grassy field corners and blocks; improved grassland field corners or blocks out of management; and winter bird food on improved grassland.

Defra stated that while there has been “only limited evidence to date” of farmers entering large amounts of their land into actions that take away food production, “some of the actions were being used more than intended in a small number of cases”.

Mark Spencer, Farming Minister said: “Food production is the primary purpose of farming. The six actions we are capping were always intended to be implemented on smaller areas of land, and these changes will help to maintain this intention and continue our commitment to maintain domestic food production.”  

The announcement follows a ‘go-slow’ convoy of farm vehicles in Westminster during March. It was organised by campaign groups, Save British Farming and Fairness for Farmers of Kent in protest at the increasing difficulties faced by the industry.

While the main focus of their frustration was trade deals that they felt undercut British farmers, they also referenced land being taken out of production for environmental reasons.

“It’s vital that [the SFI] works to support food production alongside protecting and enhancing our environment.”

David Exwood, Deputy President, NFU welcomed the SFI announcement. He said: “It’s vital that it works to support food production alongside protecting and enhancing our environment.

“An important principle of Environmental Land Management schemes (ELMs) is that they do not disadvantage the tenanted sector and this will help keep active farmers on the ground while encouraging them to farm more sustainably.

“Further development of the SFI and ELM schemes is crucial if we’re to ensure a future agricultural sector that is resilient and thriving, with farmers contributing to our national food security by producing sustainable, climate-friendly food alongside protecting our environment.”

Jess Corsair, Senior Economist at the Agriculture and Horticulture Development Board AHDB said that the lack of limits on the SFI scheme had “prompted much discussion” from the industry about risks to food production and food security, “especially considering the challenging weather conditions over the past few months”.

Corsair said: “The announcement is indicative of Defra’s collaborative approach to policy making and responding to industry concerns or unintended consequences, and it is positive to see.

“Our analysis of the SFI found that it makes sense to enter the least productive areas of your farm into the more ambitious, higher-paying actions, as sacrificing crop area and productive land has a negative impact on a business’ bottom line.

“Subsequently we do not foresee all farmers using the full 25%, although this will be something we will monitor. It is definitely a balancing act between SFI and food production.”