Following the threat of litigation, Defra has been forced to reopen the Sustainable Farming Incentive (SFI) 2024 scheme.
The decision came after a group of farmers, supported by the NFU, wrote to the Defra Secretary of State to inform him of their intention to legally challenge his decision to close the scheme to new applicants without notice.
The government’s U-turn will allow applications to be made to the scheme by around 3,000 applicants who had started an application within two months of 11 March 2025, but who had not yet submitted their application
However, while welcome for thousands of NFU members, the government’s announcement today doesn’t go far enough warns the NFU, as Defra has stated there will be some restrictions on who can apply and what they will be able to claim.
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.
“This is a really critical time for the farming industry, and while today’s announcement falls short of what our members deserve, this issue highlights the NFU at its very best, working with its members to stand up for what we believe is right.”
One of the arguments raised by the group of farmers related to the assurance that Defra would give them six weeks’ notice of any intention by Defra to close the scheme to new applicants. This appears to have influenced the Minister’s decision to review his decision to close the scheme without notice, with the Minister admitting that a mistake had been made.
What the U-turn means
Applicants who started an SFI application within 2 months of 11 March 2025 but did not submit it by that date will be given six weeks to complete an application. This means that those who started an application on or after 12 January 2025 will be able to apply. Defra will contact all concerned to confirm eligibility and further requirements.
There are restrictions, these are:
- Only one application may be submitted per farm business
- Agreements will be offered up to a max value of £9,300 per year for the duration of the agreement (excluding the SFI management payment). This is the median average agreement value for existing SFI24 agreements
- Agreement holders will not be able to add more land to ‘rotational’ SFI actions after Year 1 of their agreement.
