SFI - Sustainable Farming Incentive

The Sustainable Farming Incentive (SFI) rewards farmers for farming practices that help produce food sustainably and protect the environment.

You can apply for an SFI agreement if you were eligible for the Basic Payment Scheme (BPS) in 2022 or 2023.

There are now 102 actions in line with the expanded offer launched on 21st May 2024 for farmers and land managers. 

Why you should apply for an SFI agreement

1. Business resilience - By applying sustainable food production practices on your farm, you could improve soil health, biodiversity or help mitigate the impact of extreme weather. All of which help look after your farm in the short and long term.
2. Flexibility - You can enter as much land as you want and choose how many actions you do. Once you’re in SFI, you can add more land and actions to your agreement each year.
3. Good for your cashflow - You will receive your first payment 4 months after your SFI agreement starts. After that you’ll be paid every 3 months so you have regular, reliable income.
4. Works with Countryside Stewardship (CS) - You can have a Countryside Stewardship (CS) or Environmental Stewardship (ES) agreement and an SFI agreement at the same time. This means you can combine SFI actions with other scheme options.
5. Straightforward application process - It’s straightforward to apply and manage your agreement. You’ll apply online through the Rural Payments service and your agreement will start the month after you accept it.

What SFI can offer you

There are a vast range of different types of SFi to choose from. Keep reading for examples within each area, and links to more detail. 

Read more on the Government SFI

Soil health

The SFI actions for soils are focused on improving soil health, structure, organic matter and biology. They include:

• SAM1: Assess soil, produce a soil management plan and test soil organic matter Payment Rate per year £9/ha & £97 per agreement
• SAM2: Multi-species winter cover crops. You’d receive £129/ha per year for this
• SAM3: Herbal leys. You’ll receive £382/ha per year if you plant a N fixing herbal ley

These actions can help with the long-term productivity and resilience of the soil to benefit food production. They can also provide environmental benefits, such as better water quality, improved climate resilience and increased biodiversity.

Integrated pest management: Options include

The SFI actions for integrated pest management are focused on:

These actions should help with managing crop pests, diseases and weeds more sustainably to minimise use of pesticides. This can help improve farm productivity by reducing costs and risks. The actions can also provide a range of environmental benefits, such as SFI actions for nutrient management.

SFI actions for nutrient management

The SFI actions for nutrient management are focused on:

SFI actions for farmland wildlife on arable & horticultural land

The SFI actions for farmland wildlife on arable and horticultural land are focused on providing habitat and food sources for farmland birds, pollinators and a range of other farmland wildlife.

They can also support an Integrated Pest Management (IPM) approach if they’re done close to cropped areas, which can help to reduce costs and improve farm resilience.

The actions include:

• AHL1: Pollen and nectar flower mix: £739/ha per year
• AHL2: Winter bird food on arable and horticultural land: £853/ha per year
• AHL3: Grassy field corners and blocks: £590/ha per year

SFI actions for farmland wildlife on improved grassland.

• IGL1: Take grassland field corners or blocks out of management: £333/ha per year
• IGL2: Winter bird food on improved grassland: £515/ha per year

SFI actions for buffer strips

This action’s aim is that there’s a grass buffer strip with an intact grass sward throughout the year, without tracks, compacted areas or poaching. The SFI actions for buffer strips include:

• AHL4: establish and maintain a 4 metres (m) to 12m grass buffer strip on arable and horticultural land: £515/ha per year for the total area of land you choose to enter into this action
• IGL3: Establish and maintain a 4m to 12m grass buffer strip on improved grassland: £235/ha per year for the total area of land you choose to enter into this action

SFI actions for low input grassland

The SFI actions for low input grassland are focused on improving the sustainability of grassland management, by reducing nutrient inputs and intensive livestock management. There are 2 identical SFI actions with the same payment rate. One can be done on land outside the Severely Disadvantaged Areas (SDAs) and one can be done on land within the SDAs below the moorland line.

The actions are:

• LIG1: Manage grassland with very low nutrient inputs (outside SDAs): £151/ha per year
• LIG2: Manage grassland with very low nutrient inputs (SDAs): £151/ha per year

SFI actions for hedgerows

The SFI actions for hedgerows are focused on improving their management to provide well-developed hedgerows and hedgerow trees. These actions include:

• HRW1: Assess and record hedgerow condition: £5 per 100 metres for one side of an eligible hedgerow per year
• HRW2: Manage hedgerows: £13 per 100 metres for one side of an eligible hedgerow per year
• HRW3: Maintain or establish hedgerow trees: £10 per 100 metres for both sides of an eligible hedgerow per year

SFI action for moorland

• The SFI 2023 offer includes one action for moorland (MOR1: Assess moorland and produce a written record). It combines the 3 SFI actions from the introductory level of the SFI moorland standard: £10.30/ha and £265 per SFI agreement per year
• There's more options to be announced in 2024 for moorland

How to apply for an SFI agreement

You will apply for an SFI agreement online in the Rural Payments service. You must apply for a separate SFI agreement for common land or an area of shared grazing. Read the information about eligibility of commons and shared grazing for an SFI agreement

If you’re interested in applying for SFI this year on common land, please email RPA at ruralpayments@defra.gov.uk with ‘SFI 2023 Commons/Shared Grazing Agreements’ in your subject line.

We will help you prepare to apply for an SFI agreement, including providing access to commons maps.

For more information, please view the SFI Handbook for the SFI 2023 offer - GOV.UK (www.gov.uk)

How to get the best out of SFI for your farming business