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What the New Defra Budget Means for Farmers on SFI (and Why It’s Not Time to Relax)

Just Farm

The dust has barely settled on the new Spending Review, and if you’re farming under the Sustainable Farming Incentive (SFI), you’re probably wondering: what does this actually mean for me?

On paper, the outcome looks better than feared. Chancellor Rachel Reeves has committed to an average of £2.7bn per year for Defra between 2026 and 2029. That includes up to £2.3bn a year for the Farming and Countryside Programme, and another £400m annually for nature schemes.

At JustFarm, we welcome this clarity, but we’re also looking deeper, and what we see is a mixed bag. Let’s break it down.

💰 The Headline: Funding Isn’t Vanishing

The first thing to say is this: this is not the funding cliff some had predicted. Environmental Land Management (ELM) schemes are set to rise from £800m (in 2023-24) to £2bn by 2028-29. On the surface, that’s a win for anyone already engaged in or planning to join SFI.

We’ve avoided cuts. But…

⚠️ The Reality: Real-Term Cuts and Real-World Pressure

When you dig into the numbers, you find something less reassuring. As Strutt & Parker and others have pointed out, this new budget is still a 4% cut in real terms, especially when you factor in inflation and previous spending commitments.

Farmers are being asked to do more with less, and that’s a dangerous line to walk — particularly when scheme requirements are already demanding.

The lack of detail about how funding will be split between SFI, Countryside Stewardship, Landscape Recovery, and productivity schemes leaves everyone guessing. And that uncertainty is what makes long-term planning so difficult.

🧾 Our View: Uncertainty = Risk

Let’s be honest: most farmers are not asking for handouts. They’re asking for clear rules, fair funding, and a system that doesn’t punish them for trying to do the right thing.

Right now, the sector has:

  • Funding that’s technically secure, but shrinking in practice
  • No breakdown of how SFI will be resourced or prioritised
  • Rising expectations on environmental delivery
  • No real answer to inflation, tax changes, or tenant land challenges

It’s no wonder that trust in the system has taken a hit.

🧠 What This Means for Compliance

Whether you’re a farmer or a land agent, one thing is clear: the bar for compliance is not going down — but the funding gap might be getting wider.

In other words, you’ll need to prove more, justify more, and deliver more… just to stand still.

And that’s where JustFarm comes in. We can’t control the budget. But we can control how painful the process of compliance is. Our platform helps you:

  • Capture photo evidence of SFI actions like no-till or buffer strips
  • Track activity field-by-field, with timestamps and GPS
  • Stay audit-ready with smart, simple reports
  • Avoid missed deadlines with reminders and tailored checklists

When the pressure goes up, clarity is everything. That’s why we built JustFarm in the first place.

🌱 What Comes Next?

DEFRA’s full scheme breakdown is still to come. But regardless of how the funding is sliced, one thing’s already true: the farmers who stay organised and proactive will be in the best position to make these schemes work for them.

If you’re waiting for more clarity before taking action, we’d argue the opposite. Now’s the time to set up systems that reduce your admin, remove your guesswork, and get you ready — before the next set of requirements land.

👋 Our Takeaway

We’re glad the axe didn’t fall — but we’re not celebrating yet. This budget is a reminder that funding is fragile, and the burden of proof is only going to grow.

At JustFarm, we’re here to take some of that weight off your shoulders.

Because policy changes. Inspections tighten. But your records? They should always be solid.

  • Want to be ready for what’s coming — no matter how DEFRA divides the pot?

    Start using JustFarm today

  • Your farm’s digital compliance companion.