UK Government Reintroduces Sustainable Farming Incentive Amid Threats of Legal Action from Farmers

In a dramatic reversal, the UK Government has decided to reopen applications for its Sustainable Farming Incentive (SFI) scheme, after considerable outcry from farmers and the threat of a legal challenge. Farmers who started their applications before the unexpected halt in March can now complete them. This comes after the National Farmers' Union (NFU) signalled their intent to pursue legal action, accusing the government of making an abrupt decision without adequate notice.

The Department for Environment, Food and Rural Affairs (Defra) had initially halted the acceptance of new applications on 11 March, citing that the budget allocated for the scheme had been fully stretched, claiming that the “maximum limit” of farms that could be supported had been reached.

This decision left many farmers in a difficult position, particularly those who had already invested time and effort into the application process. Environmental groups also expressed concern, questioning the broader implications of this decision on ecosystems, biodiversity, and long-term farm resilience. The SFI is designed not only to reward farmers for food production but also for maintaining vital "common goods" such as soil health, air and water quality, and other environmental benefits.

In response to mounting pressure, Defra has now committed to allowing farmers who began their applications within two months of the 11 March deadline to finish them. Farming Minister Daniel Zeichner addressed Parliament, noting that this adjustment would benefit approximately 3,000 farmers.

A Defra source told the Guardian: “We are taking responsibility, apologising and reopening the scheme to those affected.”

The decision follows a letter from a group of farmers, backed by the NFU, demanding that Defra Secretary Steve Reed reopen the portal. The letter pointed out that Defra had previously communicated that farmers would receive six weeks' notice of any such changes, which was not the case in this instance.

NFU President Tom Bradshaw said: “The Government’s abrupt and wholly unacceptable decision to close the scheme was always wrong. While it’s good to see an acknowledgement that the decision to close the scheme was flawed, we are disappointed by the constraints imposed, which will still leave many farmers unfairly disadvantaged.”

Additionally, Defra has updated its guidance on the SFI officer and the application process, which is now available on its website. Looking ahead, further developments on the future of the SFI could be unveiled during the upcoming Spending Review, which Chancellor Rachel Reeves is set to present in June.

Despite early implementation challenges as part of the post-Brexit farming support system, the SFI has gained traction. Defra reported that nearly 37,000 multi-year agreements have been signed under the scheme as of March. A recent survey conducted by the Country Land and Business Association (CLA) revealed that more than half (54%) of farmers are already enrolled in an SFI agreement, while another 40% plan to join in the future.

CLA president Victoria Vyvyan said: “We’ve been lobbying for the government to take note of the thousands of farmers who were mid-application when the SFI scheme suddenly shut, and we’re glad they have now listened.

“It’s a limited amount of money, but it does take a bit of the sting out of the suddenness of the closure. The way for Defra to avoid such a shock again is to be open and transparent, and work with industry to design the revised scheme.”