Sustainable Farming Incentive (SFI): A practical guide for farm businesses in England

What is the Sustainable Farming Incentive?

The Sustainable Farming Incentive (SFI) is a government scheme in England that pays farmers to adopt and maintain practical actions that improve soil health, biodiversity, water quality, air quality, and resilience to climate change. It’s part of the Environmental Land Management (ELM) programme that replaced EU agri-environment schemes after Brexit.

Why SFI matters

• Reduces risk: Healthier soils and more diverse systems improve drought and flood resilience.
• Unlocks value: Regular, predictable payments for work many farms already do or plan to do.
• Market advantage: Demonstrable environmental performance supports supply chain and assurance demands.
• Future-proofing: Aligns with evolving regulations on nutrients, pesticides, and carbon.

Who can apply

• Farmers and land managers in England with eligible agricultural land (arable, horticulture, grassland, agroforestry; some lowland/upland options).
• Tenants can apply if they have management control for the duration of the agreement (typically three years); discuss landlord consent where needed.
• Common land and group applications are possible under specific rules.
• Organic and in-conversion farms are eligible; actions must not duplicate organic requirements already paid for elsewhere.

How SFI works

• Choose actions: You select from a menu of actions that fit your system (e.g., soils, integrated pest management, hedgerows).
• Build your agreement: Agreements usually run three years; you can add land or actions annually.
• Payments: Paid quarterly in arrears, with published rates per action and a management payment for participating land (subject to annual caps).
• Evidence and record-keeping: Keep simple records, maps, photos, and plans showing what you’ve done. You don’t usually need to submit upfront, but you must have them if inspected.

Typical SFI action areas

• Soils: Soil assessments and plans; testing for organic matter; winter cover crops; herbal leys; reduced tillage where appropriate.
• Integrated Pest Management (IPM): IPM planning; no insecticide use on specified crops or areas; flower-rich margins and in-field strips; beetle banks.
• Nutrient management: Farm nutrient reviews; precision application; manure management improvements; buffer strips near water.
• Hedgerows and boundaries: Assessments, sympathetic cutting regimes, gap planting, and new hedgerows.
• Farmland wildlife and habitat: Pollen and nectar mixes, winter bird food, low-input grassland, and wet features where suitable.
• Water and air quality: Buffering watercourses, reducing ammonia losses, and managing tramlines and gateways to limit runoff.
• Agroforestry and trees: Tree establishment, maintenance, and shelterbelts where compatible with the rotation.
• Moorland and uplands: Habitat assessments and tailored management on eligible land.

Payments and funding

• Rates are set per action and are reviewed periodically; many actions received uplifts since 2023.
• A management payment applies to participating hectares up to a capped area, recognising planning and admin time.
• Some actions pay more where delivery is more ambitious or complex (e.g., larger habitat blocks, enhanced options).
• You can combine SFI with other funding (Countryside Stewardship, grants for equipment, slurry, and productivity) as long as you don’t get paid twice for the same action on the same land.

Compatibility with other schemes

• SFI and Countryside Stewardship (CS) can be held together if actions don’t overlap. Use maps to avoid double funding.
• Older ES/CS agreements can continue; you can place different SFI actions on parcels not already committed.
• Private schemes (carbon, biodiversity net gain, water company payments) can be compatible if they pay for different outcomes; check contracts and avoid stacking for the same intervention.

Application process at a glance

1. Map your land and current commitments: RPA digital maps must be accurate.
2. Select actions that fit your rotation and infrastructure; start with “no-regrets” options you can deliver confidently.
3. Check eligibility and evidence requirements for each action.
4. Apply online via the Rural Payments service when applications are open (rolling windows are common).
5. On approval, implement actions and keep simple records (dates, locations, seed mixes, invoices, photos).
6. Claim and receive quarterly payments; adjust actions annually if needed.

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Timelines and agreement management

• Agreements usually last three years with flexibility to add land/actions yearly.
• You can make changes if circumstances shift (e.g., extreme weather) within scheme rules.
• New and updated actions are being introduced over time; you can switch or expand at annual review points.

Practical tips to choose the right actions

• Start with your goals: soil structure, blackgrass control, reducing bought-in inputs, or boosting birds and pollinators.
• Fit to your system: choose cover crops and margins that don’t disrupt drilling windows or stock movements.
• Build in machinery and labour realities: keep establishment and management simple and repeatable.
• Use data: recent soil tests, yield maps, and nutrient plans help target the highest-return areas.
• Consider “edge” land: poor-performing headlands and wet corners are ideal for wildlife or buffer actions.

Common pitfalls to avoid

• Overcommitting on areas you later need for the rotation.
• Missing evidence (no photos/seed invoices/plan copies).
• Double funding the same parcel with CS/SFI/private schemes.
• Choosing seed mixes or timings that don’t suit local soils and climate.

Light-touch example plans

• Arable starter bundle: Soil testing and plan; 6–10% of land in flower-rich margins and winter bird food; no insecticide on selected fields; cover crops ahead of spring crops.
• Mixed farm approach: Herbal leys in the rotation; hedgerow assessments and improved cutting; buffer strips on watercourses; IPM plan; small wet scrape restoration.
• Grassland focus: Low-input grassland management on poorer fields; overseeding with diverse sward; targeted nutrient review; hedgerow gap planting.

What to prepare before you apply

• Up-to-date field maps with accurate boundaries and features.
• Soil organic matter tests and a simple soil plan.
• A nutrient management plan (RB209-based) and IPM plan template.
• Hedgerow condition notes and photos; watercourse maps.
• A delivery calendar with key windows for establishment and cutting.

FAQs

• Can tenants join? Yes, if you control the land for the agreement term; tell your landlord and check clauses.
• Can I change actions mid-term? You can add or adjust annually; emergency force majeure rules exist for extreme events.
• When are payments made? Quarterly in arrears after you’ve started delivery.
• Will inspections be strict? Evidence must match what you signed up to; keep simple, dated records and photos.

Next steps

• List the actions that align with your farming system and risk appetite.
• Map candidate areas and check for overlaps with existing agreements.
• Cost it: estimate seed, labour, and any yield trade-offs against SFI income.
• Prepare records and apply via the Rural Payments service when you’re ready.

Note: Rates, action menus, and compatibility rules are updated periodically. Before applying, check the latest guidance and payment tables on the official GOV.UK pages or speak to your adviser to confirm current details. If you share your farm type and goals, I can suggest a tailored action mix and rough budget.