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SFI budget update, November 2024

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SFI budget update, November 2024

The budget on 30th October 2024 headlined some unexpected and unwelcome changes relating to farm payments. However, there were more announcements in the background, which are more positive. 

Concern over funding cuts turned out not to be true, and although there is not enough financial support for what is needed, it has been confirmed that there will be a budget of £2.6bn for 2024-25 (which includes £200m carryover) and £2.4bn for 2025-6. The next spending review will be in spring 2025. This means that the Sustainable Farming Incentive (SFI) will be continuing as planned.

Higher level options

However, plans to introduce the new higher tier options has been delayed with an announcement now expected in December, and with schemes opening next year. This is frustrating for farmers waiting for these options as they are more targeted than the standard SFI options and also were expected to include some new areas of support.

For those who have Higher Level Stewardship (HLS) agreements ending this year, rollover offers will be sent presumably for one more year, meaning that you will not have a break in funding. If you do not want to continue with the agreement you will be able to apply for SFI options in their place.

Delinked BPS payments

Further changes to the delinked Basic Payment Scheme (BPS) payments mean that for 2025, the Rural Payment (RPA) plan to apply a 76% reduction to the first £30,000 of a payment, while making no payments for any portion of a payment above £30,000. For example, a payment of £40,000 would have a 76% reduction applied to the first £30,000 of the payment (a reduction of £22,800). A 100% reduction would be applied to the next £10,000 (a reduction of £10,000). The payment would be reduced by £32,800 to £7,200.

Future Farming Resilience Support

Our Farming and Land Use team has been funded to give this support by DEFRA through Future Farm Resilience (FFR) and this phase of funding finishes in December 2024. Continuing FFR support is being reviewed. We are still planning more webinars and are still able to offer one-to-one support up until Christmas 2024. If anyone wants to talk through SFI options, please email: FFR@soilassociation.org and we will be happy to talk to you. 

 

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Jerry Alford Jerry Alford