SFI – Sustainable Farming Incentive
Will Southall looks at how the sudden withdrawal of the Sustainable Farming Incentive (SFI) for 2025 has blindsided many in the agricultural sector.
The sudden withdrawal of the Sustainable Farming Incentive (SFI) for 2025 has blindsided many in the agricultural sector. For those who had pinned their business models on stacking SFI options as a bridge from BPS to the new Environmental Schemes, this feels like the rug has been pulled from under them. DEFRA’s rationale—refining the Scheme for better targeting—is of little comfort to those mid-application or already budgeting on anticipated income.
What is clear is that Agri-environment funding is becoming ever more conditional, ever more complex, and ever less predictable. Schemes like ELM, CS+, and other acronym-heavy offerings may still exist, but confidence in the process is eroding fast.
The removal of the SFI has also cast doubt on the Government’s long-term commitment to supporting Farmers through the green transition. With Labour in power, there had been hopes for a clearer (and fairer) system, but early signs suggest bureaucracy may get worse before it gets better, or even if it does get better! For Farmers and Estate owners, the strategy must now be resilience. That means looking beyond state handouts: diversifying, investing in renewable energy, considering natural capital markets where viable, and lobbying for Schemes that genuinely support working land — not just parkland set-aside. The countryside can and should deliver for the environment, but only if those who manage it are properly supported to do so. After the SFI collapse, that principle is more important than ever and given this Government’s track record to date, we are not holding our breath for a sea change in the short to medium term.
To discuss any options that may be available to you in more detail please contact a member of the JM Osborne Rural & Sporting team.
Article written by Will Southall
Director of JM Osborne Rural & Sporting
