The Agriculture Act 2020 sets out the reduction in direct payments, the BPS and Single Payment Scheme (SPS) prior to this, referred to as the agricultural transition plan. This will end in 2027 and it will be replaced with a new system of Environmental Land Management Schemes (ELMS).
The Sustainable Farming Incentive (SFI) is the first of 3 new environmental schemes being introduced. The other 2 schemes under the agricultural transition plan are Local Nature Recovery and Landscape Recovery.
The reason for the is post is to explain in digestible and understandable terminology the reason why the SFI exists and how the agreements will work on the ground. The post is for anyone wanting to learn a little more about the scheme.
Why is the sfi important?
The SFI is replacing the BPS, however the payments are considerably less and as claimants you will have to do more to receive the payments.
The agreements are for 3 years, with payments made on a quarterly basis. There is no application window, so you can apply when you wish.
The aim of the SFI is to enable farmers to manage land in way that is more environmentally sustainable and improves food production. At the time of writing the SFI aims to:
- encourage actions that improve soil health
- recognise how moorland provides benefits to the public (public goods)
- improve animal health and welfare by helping farmers with the costs of veterinary advice for livestock
Under the SFI Farmers will be paid to provide public goods, such as:
- improved water quality
- biodiversity
- climate change mitigation
- animal health and welfare
SFI in 2022
In 2022, there were 3 standards available, with different levels and payments. Those were:
| Standard |
Level |
Payment |
Arable & horticultural soils
|
Introductory
|
£22 Ha (£8.90 acre)
|
|
Intermediate
|
£40 Ha (£16.18 acre)
|
Improved grassland soils
|
Introductory
|
£28 Ha (£11.33 acre)
|
|
Intermediate
|
£58 Ha (£23.47 acre)
|
Moorland
|
Introductory
|
£10.30 (£4.17 acre)
|
|
Additional payment
|
£265 per agreement
|
SFI in the future
In 2023 the following new standards and additional levels are (at the time of writing the payment rates were not available):
- Nutrient management standard
- Integrated pest management standard
- Hedgerows standard
- Advanced level of the 2 soils standards
The RPA are also introducing a new  (SFI) Management Payment of £20 per hectare, for up to 50 hectares of land entered in the scheme. This means farmers will receive up to £1,000 per year in addition to their agreement to cover the administrative costs of participation.
More standards will be introduced, in the future. You’ll be able to add these to your agreement, as well as increase levels and add land if you wish. The agreement can be updated every 12 months.
How do the SFI standards work?
A land parcel (field) can only be entered into one of the 3 standards. In future, standards will be designed to be compatible with each other.
On the basis that most of the land in the county of Cheshire is arable or grassland, we will concentrate on these standards in this section of the post.
Arable & horticultural soils
Introductory actions:
- Complete a soil assessment and produce a soil management plan
- Test soil organic matter
- Add organic matter to all land in the standard at least once during the 3-year SFI standards agreement
- Have green cover on at least 70% of land in the standard over winter
Intermediate actions:
- Complete a soil assessment and produce a soil management plan
- Test soil organic matter
- Add organic matter to all land in the standard at least once during the 3-year SFI standards agreement
- Have green cover on at least 50% of land in this level of the standard over winter and multi-species cover crop on an additional 20% of the land
Improved grassland soils
Introductory actions:
- Complete a soil assessment and produce a soil management plan
- Test soil organic matter
- Minimise bare ground by having no more than 5% of the total area of land entered into the standard left bare over winter
Intermediate actions:
- Complete a soil assessment and produce a soil management plan
- Test soil organic matter
- Minimise bare ground by having no more than 5% of the total area of land entered into the standard left bare over winter
- Establish and maintain herbal leys on at least 15% of land in this level of the standard
There is further guidance on the actions required for each standard available from DEFRA.
As part of the SFI owners of livestock can apply for the annual health and welfare review. The funding is for a vet to visit your farm and carry out an annual review of your eligible livestock. You can choose which vet to use, with the aim of improving the welfare of animals and increase productivity. This could be a good opportunity to get an external vet to have a look at your livestock, opposed to your farm vet checking their own work.
The payment rates are as follows:
- £684 for a pig review
- £436 for a sheep review
- £522 for a beef cattle review
- £372 for a dairy cattle review
Tips for applying
- Make sure your land is eligible, if you have claimed BPS on the land then it will be.
- Will you be in management control for 3 years?
- Are all your details on the RPA website up to date and correct
- Have the land parcels changed crops?
- Check out this video the RPA have produced on how to apply
As BPS is phased out claimants may look at other schemes with more attention. The headline figures are not particularly appealing for farmers to apply, however when you look at the actions required, you may find that you are already undertaking these and may as well be paid for doing so. The RPA have tried to design an application process to enable farmers to undertake applications themselves which will certainly be attractive to those who feel confident to do so.
01829 423 183
Info@selbyrural.co.uk
