Sustainable Farming Incentive (SFI)

The Sustainable Farming Incentive (SFI) is the first pillar under the Environmental Land Management Scheme (ELMS) which aims to encourage farmers to employ techniques that enhance the environment. 

Updated 15.01.2024

SFI will continue to develop with DEFRA introducing a range of new actions and operation.

These Actions will be grouped into simple packages, with multiple options within each. This structure is intended to avoid penalising those farmers that have already implemented environmentally conscious practices. 

An additional management payment of £20 per hectare is available per agreement, up to a maximum of 50 hectares (£1,000). Current available actions include: 

Actions for Soil (SAM) 

• SAM1 - Assess soil, test organic matter and produce a soil management plan £6 per ha plus an additional £97 per agreement.
• SAM2 - Multi Species Winter Cover Crops £129/ha 
• SAM3 - Herbal Leys £382/ha 

Actions for Moorland (MOR) 

• MOR1 - Assess moorland and produce a written report £10.30 per ha and an additional £265 per agreement.

Actions for Hedgerows (HRW) 

• HRW1 - Assess and record hedgerow condition - £5 per 100m (one side)  
• HRW2 - Manage hedgerows £13 per 100m (one side). This is comparable to BE3 - £10 per100m (one side) under the Countryside Stewardship Scheme.
• HRW3 - Maintain existing hedgerows trees or establish new ones, so there is an average of at least one hedgerow tree per 100m. £10 per 100m (both sides).

Actions for Integrated Pest Management (IPM) 

• IPM1 - Assess integrated pest management and produce a plan-£1129/year. This option applies to an SFI agreement rather than a specific area of land and must be endorsed by a BASIS qualified adviser. 
• IPM2 - Establish and maintain flower-rich grass margins, blocks or in-field strips - £798/ha
• IPM3 – Establish a companion crop - £55/ha
• IPM4 – No use of insecticide - £45/ha

Action for Nutrient Management (NUM) 

• NUM1 – Assess nutrient management and assessment report - £652/year (This option applies to an SFI agreement rather than a specific area of land and requires a FACTS qualified adviser).
• NUM2 – Establish and maintain legumes rich swards in improved grassland - £102/ha
• NUM3 – Establish and maintain legume fallow - £593/ha 

Actions for Farmland Wildlife on Arable and Horticultural Land (AHL) 

• AHL1 – Establish and maintain blocks or strips of pollen and nectar flower mix - £739/ha  
• AHL2 - Establish and maintain blocks and strips of winter bird food - £853/ha
• AHL3 - Establish and maintain grassy field corners and blocks - £590/ha   

Actions for Farmland Wildlife on Improved Grassland (IGL)  

• IGL1 - Take grassland field corners and blocks out of management - £333/ha
• IGL2 - Maintain improved grassland to provide winter bird food - £515/ha   

Actions for Buffer Strips (AHL) 

• AHL4 - Establish and maintain a 4-12m buffer strip on arable and horticultural land - £515/ha
• IGL3 - Establish and maintain a 4-12m buffer strip on grassland - £235/ha

Actions for Low Input Grassland (LIG)

• LIG1 - Manage grassland with very low nutrient inputs (outside SDAs) - £151/ha  
• LIG2 - Manage grassland with very low nutrient input (SDAs) - £98/ha

Animal Health and Welfare Review (per review)

• Pig – £684 
• Sheep – £436 
• Beef – £522 
• Dairy – £372 

ABOUT THE SFI ACTIONS: 

• A three-year agreement but flexible to be amended every 12 months, mainly to increase the area of land or improve the standard complied with. 
• There will be a rolling application window 
• Payments are made quarterly, in arrears. 
• Soil organic matter will be reviewed annually with testing on a 5-yearly basis, to demonstrate improvement. 
• Double funding is not permitted, but land subject to BPS claim may also be used for SFI Actions. 
• RPA is allowing SFI & CS combined applications as of 2024.

WHAT WE KNOW ABOUT FUTURE SFI ACTIONS:

• In 2024, agroforestry, precision farming, water, public engagement and more grassland Actions amongst other will be added.
• All the standards will be reviewed each year, and pilots will be carried out before each new Action is introduced. Payments rates will be reviewed to encourage uptake and extra Actions will be added up to 2030 to help achieve government targets.
• It has been confirmed that, although double funding is not allowed, farmers can claim under SFI and enter private BNG, carbon, nutrient neutrality or ESG agreements. This is providing additional benefits can be proven.

WHAT IS A BASIC SOIL ASSESSMENT?

A prerequisite to the soil Actions includes a requirement to carry out basic soil assessments. 

These will be used to identify parcels at risk of surface runoff, soil erosion, compaction, waterlogging or regularly flooding. The assessment will include soil texture, drainage, slope and connectivity to a waterbody or sensitive habitat.