The Sustainable Farming Incentive
As many of you will be now be aware, the Agricultural Transition Plan is well underway, and one of the schemes under this is the Sustainable Farming Incentive (SFI).
The Government’s aim for the SFI is to help and encourage farmers to improve food productivity whilst becoming more environmentally sustainable through managing their land to improve soil health, water quality, biodiversity, animal health and welfare and to mitigate climate change.
So, who’s eligible for the Sustainable Farming Incentive?
The SFI was officially launched in June of this year, and anybody who has five or more Basic Payment Entitlements (5ha) is eligible for the SFI. Currently, it is also not a requirement that you must have claimed on those entitlements in previous years (however this will change).
Can you apply for the Sustainable Farming Incentive if you are in an existing government funded agri-environmental scheme?
In short, yes. This includes Basic Payment Scheme, Environmental Land Management Scheme and Countryside Stewardship. Land not currently in an existing scheme is open to SFI through the RPA online process. For those farmers who are already part of an existing scheme there is an alternative and more complex application process which is likely to change within the next 12 months. Despite farmers being able to claim on land in other schemes, you will not be paid twice for the same activities. If you are in a scheme such as Countryside Stewardship and applying for SFI any land not eligible for the specific revenue or capital options that you choose will not be made available to you at the application stage.
What is financially available to you?
There are three standards available with two levels of payment within each standard.
Standard 1: Arable and Horticultural Soils – Introductory £22/hectare Intermediate £40/hectare. Standard 2: Improved Grassland Soils – Introductory £28/hectare Intermediate £58/hectare. Standard 3: Moorland – Introductory £10.30/hectare with an additional payment of £265 per agreement. This is the early stages of this scheme and we fully anticipate new payment levels being released in time.
Payments will be made quarterly and the scheme runs for three years, this means you must have management control for the duration of the agreement and therefore it is important to review your tenancy before making an application.
It is important to note that that in order to maximise payments effectively, Countryside Stewardship payment rates may sometimes be higher than SFI and vice versa, therefore a joined-up approach to the application process is advised if you are currently in neither scheme.
Charlotte Hurley is a graduate surveyor at Halls
