Chris Muir reviews the Sustainable Farming Incentive 24 Expanded Offer (SFI24EO)

This entry was posted on Wednesday, August 7th, 2024 at 1:15 pm

Following the initial announcement of Environmental Land Management Schemes (ELMS)  and Sustainable Farming Incentive (SFI) pilot schemes, together with feedback from farmers and other stakeholders, the Environmental Land Management program has been evolving over the last few years with the SFI, Local Nature Recovery and Landscape Recovery being adapted and amended. Applications for SFI23 were opened  last September and closed on 10^th June 2024.

Defra have released information throughout the year for SFI24 the Expanded Offer (SFI24EO) for which currently you can express an interest. SFI24EO is the replacement name for the ‘Local Nature Recovery’ and ‘Countryside Stewardship plus’ schemes which were muted last year. The new government have said they don’t want to overturn the existing ELM program but that there could be tweaks when it is fully rolled out.

SFI24EO is a combination of 102 actions, with 20 new ones, 57 amended actions previously available through Countryside Stewardship Mid-Tier. Ten actions are capped at 25% of eligible area and the duration of 94 actions is 3 years, the remaining actions last 5 years. Currently one action requires endorsement with more likely to follow for Higher Tier applications. Countryside Stewardship Mid-Tier and Wildlife Offers are likely to disappear as we know them and merge into SFI24EO with no new application windows or mirror agreements being offered. There are 105 standalone capital grants giving you three years to complete works and submit the claim once an agreement is accepted. There is no application window, and the grant is uncapped, but is offered based on environmental benefit. Applications cover items such as concreting yards, muck store/soilage clamp covers and boundary management. Higher-Tier actions are yet to be released but are expected in the autumn but will be standalone schemes offering higher environmental benefit.

The list below shows 14 headings and the number of actions available to choose from. https://www.gov.uk/government/publications/sustainable-farming-incentive-scheme-expanded-offer-for-2024/sfi-scheme-information-expanded-offer-for-2024#annex-b-summary-of-the-initial-expanded-sfi-offer-from-summer-2024

• Soil health – 7
• Integrated Pest Management – 4
• Nutrient Management – 3
• Precision farming – 4
• Organic farming – 14
• Species recovery and management – 4
• Waterbodies – 9
• Boundary features – 5
• Buffer strips – 8
• Farmland wildlife on arable and horticultural land – 15
• Farmland wildlife and habitats on grassland – 11
• Heritage – 5
• Moorland – 11
• Agroforestry – 2

Rolling applications will continue with agreements starting on the 1^st of the month lasting three years (five depending on options). Payments will arrive four months after the start date and then quarterly for the remainder of the agreement. Towards the end of each SFI agreement year, annual declarations will be submitted confirming all action requirements have been met and to allocate rotational options or to add and amend agreements. New agreements can be started at any time as the scheme evolves.

As well as limiting ten actions to 25% of eligible area, management guidance has been changed subtly on some options which may now state a set number of species for example. Management guidance released in May stated that legume fallow (CNUM3) (£593/ha) and herbal leys (CSAM3) (£382/ha) were static which would really put famers off applying, the flexibility seemed to have been removed. However, the latest version now shows both options as either static or rotational which is welcome relief for those wishing to use the legume as a break crop or to get on top of grass weeds.

New options for precision farming, applying nutrients using variable rate technology (PRF1) (£27/ha) and no till farming (SOH1) (£73/ha) are available but come with restrictions which may not suit. The current guidance for PRF1 suggests all major nutrients must be applied using automated technology. This is particularly hard to achieve when spreading FYM, although you may argue that all FYM is spread variably. Manures can be analysed to get an accurate picture of nutrient content.

The Farm Equipment and Technology Fund (FETF) has recently provided grants towards (up to 50%) the purchase of direct drills with no cultivation equipment in front of the seed unit. For some arable farms they were heading down the no till route anyway, so the precision farming action was a no brainer with the payment seen to bridge some of the gap left by BPS. However, currently the action must be static for three years and therefore may not suit all seasons and rotations.

With 102 SFI actions and 105 capital options to choose from and a myriad of options and compatibility, eligibility and stacking issues the need to seek technical advice has never been greater. Stephensons Rural can provide you with a wide range of advice and then tailor SFI24EO or capital grants to the changing landscape of agricultural subsidies.

For further information please speak to Chris Muir 01904 486722 or chris.muir@stephensonrural.co.uk