With record numbers of farm businesses in farming schemes and the sustainable farming budget successfully allocated, the RPA have stopped accepting new applications for SFI (Sustainable Farming Incentive Scheme) as of 11th March 2025.
What does the axing of the current Sustainable Farming Incentive Scheme mean for farmers?
If you have an SFI agreement:
Nothing changes. You will continue to receive payments as normal under the terms of your agreement. In many cases for another three years. If your agreement expires before October 2026, you may be eligible to apply for the reformed SFI offer after your current agreement ends. The RPA will provide more details later this year. If you entered an SFI agreement this year, you will be paid until 2028.
If you’ve been offered an agreement but haven’t yet accepted:
You need to accept your SFI agreement offer within 10 working days of it being offered (as explained in the agreement offer letter). If you don’t, the RPA may withdraw your SFI agreement offer.
If you started an SFI application but did not submit it before 11th March 2025:
You will not be able to submit your application. The only exceptions to this are a small group of farmers who were blocked from submitting their applications due to a system fault or had requested ‘assisted digital’ support from the RPA to apply, and ex-SFI pilot farmers whose pilot agreement has already ended, but they haven’t applied for the full SFI 2024 offer on land which was in their pilot agreement.
Revising the SFI Scheme:
A reformed SFI scheme, with a budget to be confirmed in the Spending Review this summer, will direct funding where there is greatest potential to do more on nature and where there is the least ability to access decent returns from agricultural markets, or other sources of investment, as set out in the Land Use Framework.
In parallel, Defra will also reform markets, supply chains and regulations to ensure farmers receive fair payment for food production, with private sector support where possible.
Defra continue to engage closely with stakeholders while we review the scheme to make sure that it is done in a transparent way.
Details of the revised SFI scheme will be announced in Summer 2025, building on lessons learned and stakeholder feedback.
