Written by Ian Gould and Ethan Powell from Oakbank Game and Conservation
As we inch ever closer to knowing more detail regarding the Sustainable Farming Incentive (SFI) and the new government portal for applications (possibly in September), many farmers are trying to make sense of what we do know. So far there has been little financial incentive to change practices on farm substantially, the original payments simply rewarded farmers for what many were already doing. That may be about to change but farmers should always work out the finances of what they are being asked to do compared to the possible downsides of any choices. The Government also needs to better understand that farming is highly volatile and well-intended plans can sometimes require change because of external forces like the weather. Farmers and advisors need to accept a lot of responsibility for using the opportunity to deliver the intended benefits, rather than exploiting any loopholes for pure financial gain, if that happens we can expect more regulation and potentially less money!
Many of the priorities for farmers that are trying to improve their soils and biodiversity are well catered for in the published SFI options, with more to follow I am sure. It is clear that we need to value the longer term benefits that will be delivered by these management changes, rather than focus on the immediate financial offering.
The one area that we do need more clarity on soon is how SFI and Stewardship will sit alongside other potential funding opportunities, such as water company schemes, carbon credits, etc. This “Stacking” of payments could really be a key driver for many farms, but it is essential that we get clear guidance about what is and is not allowed, with rules that are stable and not changing every year.
SFI & CS Compatibility
Land under a CS scheme can be entered into an SFI agreement, as long as the land cover and land type are eligible for the standard you choose. The CS options, including their timing, must be compatible with the actions in the standard you choose (see table below).
Similar activities or outcomes will not be double funded through both schemes on the same area of land at the same time. Neither will CS options count towards actions in the SFI standards – for example an area of SW6 Winter cover crops established under CS cannot be used to meet the requirements of the SFI arable and horticultural soils standard.
Ineligible CS revenue option land, including any land currently used for an ineligible rotational CS revenue option, cannot be entered into an SFI agreement. For example, if you have a 10-hectare field with 1 hectare of AB9 – Winter bird food, this area would automatically be removed from the field parcel in your SFI application, leaving you with 9 hectares to apply on. Once the agreement has started, the rotational CS option can be moved between parcels if needed, as long as the total area of SFI eligible land does not change across your holding. If the area of CS options increases, then you will need to add land to the SFI agreement to accommodate the change at the annual upgrade point.
| Eligible CS revenue options for the arable and horticultural soils standard | |
| AB5 | Nesting plots for lapwing |
| AB11 | Cultivated areas for arable plants |
| AB12 | Supplementary winter feeding for farmland birds |
| AB14 | Harvested low input cereal |
| BE3 | Management of hedgerows |
| ED1 | Educational access |
| HS3 | Reduced-depth, non-inversion cultivation on historic and archaeological features |
| HS9 | Restricted depth crop establishment to protect archaeology under an arable rotation |
| OP3 | Supplementary feeding for farmland birds (organic) |
| OR3 | Organic conversion – rotational land |
| OR4 | Organic land management – horticulture |
| OT3 | Organic land management – rotational land |
| OT4 | Organic land management – horticulture |
| SP9 | Threatened species supplement |
| SP10 | Administration of group managed agreements supplement |
SFI & Private Finance
Currently, you can enter the same area of land into an SFI standards agreement and a private sector scheme arrangement, such as carbon trading or payments for natural flood management. The approach to private sector schemes will be reviewed by Defra annually.
Current Soils Standard Summary
Introductory (£22/ha)
- Complete a soil assessment and produce a soil management plan
- Test soil organic matter
- Add organic matter to all land in the standard at least once during the 3-year SFI agreement (can be in the form of cover crops sown to meet next action)
- Have green cover on at least 70% of land in the standard over winter (can be autumn-sown crops, cover crops or weedy stubbles)
Intermediate (£40/ha)
- Complete a soil assessment and produce a soil management plan
- Test soil organic matter
- Add organic matter to all land in the standard at least once during the 3-year agreement (can be in the form of cover crops sown to meet next action)
- Have green cover on at least 50% of land in this level of the standard over winter (can be autumn-sown crops, cover crops or weedy stubbles) and multi-species cover crops on an additional 20% of the land (must contain at least two species from these families: brassica, legume, grass/cereal, herbs)
New Actions for 2023 (Not including CS variations)
Hedgerows standard
Assess and record hedgerow condition (£3/100m one side)
- All hedges in this action must be assessed, and written condition assessment recorded
- Must review and update annually
Maintain existing hedgerow trees, or establish new ones (£10/100m both sides)
- Payment only available for planting in CS
- Must average 1 hedgerow tree/100m across hedgerows entered
Integrated pest management standard
Complete an integrated pest management (IPM) assessment & plan (£989/year)
- BASIS qualified advisor to complete an IPM assessment and written IPM plan
- Must review and update annually
Establish a companion crop (£55/ha)
- Establish a companion crop so it’s growing with the main arable or horticultural crop.
- Can be on same area or moved around each year.
No use of insecticide (£45/ha)
- Do not apply any plant protection products containing insecticide on the land in this action.
- Can be on same area or moved around each year.
Nutrient Management Standard
Complete a nutrient management (NM) assessment & report (£589/year)
- FACTS qualified advisor to complete a NM assessment and written NM plan
- Must review and update annually
Arable and Horticultural Land Standard
Establish and maintain grassy field corners and blocks (£590/ha)
- Sow or naturally regenerate field corners
- Similar to the field corner management option in ELS/HLS
So that is what we know (early June 2023) and we feel confident that many farmers will engage with SFI once the portal is available, it would be daft not to look at the options carefully as there is a lot to be gained. It is certainly not perfect and some farming sectors will be very disappointed at the options available to them at this stage, but keep the faith!
For more help and advice please contact Oakbank by calling 01480 890686 or email info@oakbankgc.co.uk
