Now could be a good time to review investment and wider business plans for those who missed out on the latest round of the Sustainable Farming Incentive (SFI), suggests Mark Chatterton, head of agriculture at Duncan & Toplis.
“Some investments will remain worthwhile, particularly those that can improve productivity, reduce costs or support the long-term performance of the farm. But it could make sense for others to be delayed, phased or reconsidered,” he explains.
“The important question is whether the investment still makes financial sense. Consider potential returns, cashflow and the wider benefit to the farming operation.”
This wider review might consider how the business could become more resilient. That should include assessing the profitability of individual enterprises, improving operational efficiency, reducing unnecessary costs, considering diversification or looking at whether existing land, buildings and other assets could work harder for the business.
“The aim is not to make significant changes simply because SFI funding was unavailable,” says Mark. “Instead, it is about using the latest development as a prompt to make sure resources are being directed towards areas that support the farm’s priorities.”
“Many farmers are rightly disappointed that the second application window for SFI 2026 closed less than six hours after opening, leaving them questioning what to do next,” adds Willem Puddy, head of rural at Old Mill. “Missing out on anticipated income may require adjustments, but it also provides an opportunity to review the financial position of the farm and make sure future plans remain right for the business.
“The first step is to establish what the anticipated SFI payments would have contributed to your business. Consider whether planned expenditure was reliant on the funding, whether costs can be adjusted, and what this means for working capital.”
