Summer update on the Sustainable Farming Incentive (SFI)
New higher tier options coming soon
There are no new options available currently, although there will be some higher tier options announced soon. This includes the details of the one promised for species rich grassland. These will be more targeted actions and may require approval from Natural England. You can apply for the existing options and then apply for higher tier ones as a separate application when they are known, or you can wait and do one application. Many will be updated versions of the older Higher Level Stewardship (HLS)and stewardship options.
Farms with existing CS agreements, or HLS agreements, should also be able to adapt them rather than waiting for them to end. They will need to have a new SFI agreement or additional ones.
Requirement or guidance explanation
As part of the recent announcement there were some changes made to the guidance on the options, as well as some of the rules. All the options are shown on the government's webpage: Find Funding for Land or Farms. There, they explain the aims of the action, requirements (essential) and advice (not compulsory). For those of you who prefer a printable document, this PDF includes a summary of updates at the end of each action.
As an example, the herbal ley option (CSAM3) still has the requirement of at least 1 grass, 2 legumes and 2 herb or wildflower species, no more than 40kgN/ha and no herbicides. However, the guidance shows a more diverse mix of 5 grasses, 4 legumes and 4 herbs, which amounts to best practice. This does allow species selection to fit the farm, but you will need evidence that you tried to achieve the right outcomes.
Rotational and static options
One significant change in requirement has been changing options, such as herbal ley CSAM3 and legume fallow options CNUM3 from static to rotational as they were initially in the SFI 2023 rules. This change goes back to what was available in earlier versions. It fits organic arable rotations better and prevents some of the complications that would have been found over the years. You need at least 50 percent of the area entered in year 1 to be on farm in the following 2 years of the agreement - again, allowing rotational flexibility.
SSSI and HEFER
You will need consent from Natural England to apply for some SFI options on land which is designated as Sites of Special Scientific Interest (SSSI). You should also apply for a Historic Environment Farm Environment Record (HEFER) if you have historic or archaeological features on your land. Some options are not permitted on those parts of the field where the feature is.
Native livestock species payment
There is an option for keeping native breeds on grazed habitats. It was a supplement, but it is now an action. However, it is limited to land in organic, low input grassland (CLIG1) and agroforestry options. One interesting anomaly is that it can be used as well as SFI Organic conversion and management on improved and unimproved permanent pasture (OFC1 and 2, OFM1 and 2). But, it can't be used on land entered into Countryside Stewardship OT1 or 2 or GS2 as the rules apply. It should be possible to change the old scheme to the new one though.
Haymaking supplement GHR7 and 8
Although the grass can be wrapped, the requirements of this option are that you must leave a field uncut or ungrazed for 8 weeks before cutting. This allows flowers to set seed, so you should cut after late June. You must also leave an area uncut around the outside and turn the hay crop at least once when wilted before baling.
Organic horticulture OFM5
Unlike the CS horticultural option OR4 and OT4, the SFI option is rotational for non-permanent crops. In a boost to organic farming, this means that fields that are growing horticultural crops can receive this payment even if not previously registered as OT4.
Organic top fruit OFC5 and OFM6
As permanent crop there are few options available for top fruit, although the payment rate is good for organics conversion and management. The requirement remains that it has to be in commercial production and not used for alcoholic drink production. There are good opportunities to produce fruit juices and eating fruits. Options such as pollen and nectar mixes, (CAHL1) grassy field corners (CAHL3), bumblebird mix (CAHW1) and legume fallow (CNUM3) are all permitted on the same land where tree densities allow. These all offer a feed supply for beneficial pollinating and predatory insects.
Ditches and hedges
The ditch option (WBD2) relates to boundary ditches, rather than ditches against hedges. It does not include streams or rivers. You must have management control, so ditches managed by drainage boards are not eligible.
Hedges, such as those in Devon or Cornwall, where they are on top of earth banks are eligible for both BND2 earth bank or stone-faced bank management and the hedge row option HWR1, 2 and 3. But the hedge should be a consistent hedge line on top of the bank.
Agroforestry
There is more guidance available, but it would be advisable to get advice if you are considering it. One point to bear in mind is that if you were considering tree densities that lead to more than 20 percent canopy cover, you may need to get a forestry Environmental Impact Assessment (EIA). A grid pattern with trees 15m apart, or rows 24-45m apart with trees/shrubs 3m apart would generally not need an EIA.
Our Agroforestry team can advise and there is funding available from the capital grants for agroforestry advice. Email producer.support@soilassociation.org and ask to be put in contact with Ben Raskin or Jon Haines (agroforestry), or Clive Thomas (farm woodland).
Buffer strip options
It has been highlighted that there should be no access tracks or storage of machinery or round bales on buffer strips.
Capital grants
There are still opportunities for grant funding for trees, hedges, water pipes and troughs etc. through the capital grants scheme, although it may be more limited than it has been. Infrastructure, such as slurry lagoon covers, concrete replacement and subsoilers are also possible. You do not need, as some think, to apply at the same time as a SFI application as it can be a stand-alone agreement.
I have more questions. What can I do?
Come along to one of our Future Farm Resilience (FFR) farm walks, evening meetings or webinars. We're holding them throughout the year, including events which will be more targeted to horticulture, cover crops and green finance etc.
We are also available for one-to-one calls or follow up calls if you have already talked to one of our advisors. The FFR scheme is funded by Defra. They require that you only receive the free advice from one supplier (other organisations are running similar events), but there isn’t a limit on how many times you can talk to us.
We have lots of other information relating to keeping on top of changes in payments and support on our Resources page.
You can also email us at ffr@soilassociation.org.
Find out more about SFI:
Horticulture update, April 2024
Agroforestry update, January 2025
