Sustainable Farming Incentive (SFI) - General Info
The SFI is the first of 3 new environmental schemes being introduced this month (June 22) under the Agricultural Transition Plan.
SFI is aimed at helping farmers improve food production and environmental sustainability, through land management. In more detail, this scheme is designed to encourage actions that improve soil health, recognise how moorland provides benefits to the public and improve animal health and welfare. To achieve this, farmers will be paid to provide public goods, such as; improved water quality, biodiversity, climate change mitigation and animal health and welfare through funded veterinary advice for livestock.
To begin with, the scheme will offer three standards for applicants to enter. Each standard has two different levels known as ‘Introductory’ and ‘Intermediate’ with set payment rates per hectare dependent upon the level chosen.
The table below sets out the 3 standards and their payment rates:
Agreements
Agreements will run for 3 years meaning the actions in the standards will need to be upheld for this duration. The standards do not currently include any capital item funding, however, capital items can be applied for on parcels entered in the SFI, through Countryside Stewardship Capital Grants. Upgrades to agreements will be allowed to be made every 12 months from its start date – this means you will be able to add more standards, increase levels within standards already in your agreement and add more land, a total of two times within your 3 year agreement.
Payments
Payment will be determined on the number of hectares of eligible land entered into each level of a standard. This total sum will be divided equally into 4 instalments and will be paid quarterly. The first payment will be made 3 months after the agreement begins. Start dates will be rolling depending on when the application is received.
Existing Scheme Compatibility
The SFI can be applied for if you have existing schemes on your land such as BPS, Countryside Stewardship & Environmental Stewardship. Parcels can be included in new SFI agreements and existing schemes, as long as the activities or outcomes you’re being paid for under each scheme are compatible and you are not being paid for a similar activity or outcome on the same area of land at the same time (known as double funding).
Each existing scheme has a list of compatible features/options that can run alongside the SFI, so applications may differ depending on existing options.
Eligibility
Applications are open to all BPS eligible farmers from late June 2022 and will remain open indefinitely, meaning applications can be done at a time most suitable to the applicant. If the RPA intend to close applications, 6 weeks’ notice will be given. Land will be eligible for the agreements if it matches the land covers and land types allowed for each standard. Parcels including SSSI’s and historic features are also eligible for the SFI.
The 3 Standards
When choosing standards, each one has a particular sets of aims. These aims are achieved by completing the land management actions for that standard. At present, land parcels can only be entered into one of the 3 standards available. The two soils standards currently have two levels – introductory and intermediate, with most of the actions being the same in both levels, but additional actions added into the intermediate level. The moorland standard currently just has the introductory level. The aims and appropriate actions for each standard are detailed below.
The Arable and Horticultural Standard
The arable and horticultural soils standard is focused on
improving soil health, structure, organic matter and biology as these
improvements can lead to benefits in food production. They also contribute to a
range of environmental and climate change outcomes, including better; water
quality, climate resilience and
biodiversity.
Introductory level actions – pays £22/hectare
–
action 1: complete a soil assessment and produce a
soil management plan
–
action 2: test soil organic matter
–
action 3: add organic matter to all land in the
standard at least once during the 3-year SFI standards agreement
–
action 4: have green cover on at least 70% of land
in the standard over winter
Intermediate level actions – pays £40/hectare
–
action 1: complete a soil assessment and produce a
soil management plan
–
action 2: test soil organic matter
– action 3: add organic matter to all land in the standard at least once during the 3-year SFI standards agreement
– action 4: have green cover on at least 50% of land in this level of the standard over winter and multi-species cover crops on an additional 20% of the land
The Improved Grassland Soils Standard
The improved grassland soils standard has similar aims to the arable
standard above, with the same focuses on soil health, improved food production
and climate resilience.
Introductory level actions – pays £28/hectare
– action 1: complete a soil assessment and produce a soil management plan
– action 2: test soil organic matter
– action 3: minimise bare ground by having no more than 5% of the total area of land entered into the standard left bare over winter
Intermediate levels actions – pays £58/hectare
– action 1: complete a soil assessment and produce a soil management plan
– action 2: test soil organic matter
– action 3: minimise bare ground by having no more than 5% of the total area of land entered into the standard left bare over winter
– action 4: establish or maintain herbal leys on at least 15% of land in this level of the standard
The Moorland Standard
Moorland soils and habitats provide a range of benefits to the public, including; carbon storage to offset the effects of climate change, water storage and flow to reduce the effects of flooding and drought, biodiversity to protect plants and wildlife and heritage to protect historic and archaeological features. The introductory level of the moorland standard is focused on assessing moorland to identify which of these benefits the moorland already provides and opportunities to maintain or enhance these benefits.
Introductory level actions – pays £10.30/hectare
– action 1: identify and record the soil and vegetation types and condition, and presence of historic and archaeological features
– action 2: assess the public goods the moorland is already providing
– action 3: identify opportunities to maintain or enhance the public goods provided by the moorland
Future of the Scheme
The SFI will expand each year, with full sets of standards in place by 2025. Alongside this, higher levels for existing standards will be in place by 2025. It is also proposed that capital items will be built into standards as they develop.
This means that each year there will be more you can choose to do and you’ll get paid more as a result. The current proposals for new standards and additional levels are shown in the table below.
Annual Health and Welfare Review
Part of the funding available through the new Environmental Schemes is being assigned to livestock farmers to allow them to obtain an annual review of their livestock by a vet of their choice. Known as the Animal Health and Welfare Pathway, the cost of the visit will be covered by the funding. The pathway will push forward and support the gradual and continual improvement in farm and animal health and welfare.
Whilst this is part of the SFI offer in 2022 and sits alongside the environmental standards, you do not need to have an SFI standards agreement to be eligible for the annual health and welfare review.
See how those who took part in the Sustainable Farming Incentive pilot scheme have applied the standards to their differing farming systems by visiting DEFRA’s YouTube channel below:
