Spade with wooden handle digging into soil

The Sustainable Farming Incentive

DEFRA have launched the new expanded 2024 Sustainable Farming Incentive offer, which will be available to farmers within the next few weeks. 

The Sustainable Farming Incentive pays farmers and land managers to take up or maintain sustainable farming and land management practices that protect and benefit the environment, support food production and improve productivity. 

The expanded SFI offer which was recently published will be available to farmers from the end of July and is open to new entrants for the first time. Initially comprising 102 actions, including over 20 new options to support more sustainable food production. 

The SFI actions in the expanded offer include:

  • The actions from the SFI 2023 offer.
  • New actions such as tillage farming and precision farming.
  • Actions previously offered under Countryside Stewardship Mid Tier to streamline the application process for farmers.

The 2024 SFI scheme also includes:

  • 23 new options for moorland, precision farming, agroforestry, and stone wall maintenance
  • 57 options from Countryside Stewardship, with most of them now three-year agreements
  • 21 priority actions, including for lowland peat, moorland grazing, and agroforestry 
Hedgerow along the side of a field

What can farmers get paid to do in SFI 2024?

The Sustainable Farming Incentive pays farmers and landowners to take up or maintain sustainable farming and land management practices that protect and benefit the environment, support food production and improve productivity.

As an example, the new SFI 2024 offer includes actions for Organic Farming, one of which is for OFA1 - Overwinter Stubble (organic land). This means farmers will be paid £264 per hectare for provide a green cover on post-harvest stubble over the autumn and winter months, the purpose of this is to provide a a winter food source for seed-eating farmland birds and provide foraging habitats for farmland wildlife. 

in 2024, SFI includes new and expanded actions which will allow farmers to be paid for:

  • Precision farming
  • Agroforestry
  • Multispecies cover crops
  • Making space for nature
  • Maintaining habitats 

How does SFI work?

As before, SFI agreements will run for 3 years and payments are made quarterly in arrears. This gives greater flexibility for tenant farmers to enter the scheme, as they do not need landlord consent, provided they can reasonably expect to have management control of the land for the 3-year term.

When the scheme re-opens, there will be a “controlled rollout”, which means not everyone will be able to apply at once.

Applications will be made online and the RPA expect to make agreement offers within a few weeks of application, considerably quicker than any other schemes.

In theory, land can be entered into SFI, even if it is already in other schemes. However, you cannot be paid twice for doing the same thing. Many Countryside Stewardship options overlap to some degree with SFI actions, which effectively means that land often cannot be in both schemes. Similarly, hedges already in the CS option BE3 cannot be entered into SFI.

Code

Agroforestry

Payment Rate

AGF1

Maintain very low density (30 – 50 trees/ha) in-field agroforestry on less sensitive land

£248 per ha

AGF2

Maintain low density (51-130 trees/ha) in-field agroforestry on less sensitive land

£385 per ha

 

Code

Boundary Features

Payment Rate

CHRW2

Manage hedgerows

£13/100m one side

BND1

Maintain dry stone walls

£27/100m both sides

BND2

Maintain earth banks or stone-faced hedgebanks

£11/100m both sides

 

Code

Buffer Strips

Payment Rate

CAHL4

4m-12m grass buffer strip on arable and horticultural land

£515/ha

CIGL3

4m to 12m grass buffer strip on improved grassland

£235/ha

BFS1

12m-24m watercourse buffer strips on cultivated land

£707/ha

BFS6

6m to 12m habitat strip next to watercourse

£742/ha

 

Code

Farmland Wildlife on Arable and Horticultural Land

Payment Rate

AHW2

Supplementary winter bird food*

£732/t (max 1t per 2ha CAHL2)

AHW3

Beetle banks

£764/ha

AHW4

Skylark plots

£11/plot (min 2 plots/ha)

AHW5

Nesting plots for lapwing

£765/ha

AHW6

Basic overwinter stubble

£58/ha

AHW7

Enhanced overwinter stubble*

£589/ha

AHW8

Whole crop spring cereals and overwinter stubble

£596/ha

AHW9

Unharvested cereal headland*

£1,072/ha

AHW10

Low input harvested cereal crop

£354/ha

AHW11

Cultivated areas for arable plants*

£660/ha

CAHL1

Pollen and nectar flower mix*

£739/ha

CAHL2

Winter bird food on arable and horticultural land*

£648/ha (reduced from £853/ha)

CAHL3

Grassy field corners or blocks*

£590/ha

 

Code

Farmland Wildlife (Grassland)

Payment Rate

GRH7

Haymaking supplement

£157/ha

GRH8

Haymaking supplement (late cut)

£187/ha

GRH10

Lenient grazing supplement

£28/ha

GRH12

Manage rough grazing for upland breeding waders

£203/ha

CLIG3

Manage grassland with very low nutrient inputs

£151/ha

CIGL1

Take grassland field corners or blocks out of management*

£333/ha

CIGL2

Winter bird food on improved grassland*

£515/ha

SCR1

Create scrub and open habitat mosaics

£588/ha

SCR2

Manage scrub and open habitat mosaics

£350/ha

 

Code

Heritage

Payment Rate

HEF1

Maintain weatherproof traditional farm or forestry buildings

£5/sq m

HEF6

Manage historic and archaeological features on grassland

£55/ha

 

Code

Integrated Pest Management

Payment Rate

CIPM2

Flower-rich grass margins, blocks or in-field strips*

£798/ha

CIPM3

Companion crop on arable and horticultural land

£55/ha

CIPM4

No use of insecticide on arable crops and permanent crops

£45/ha

 

Code

Moorland

Payment Rate

UPL1

Moderate livestock grazing on moorland

£35/ha (increased from £20/ha)

UPL2

Low livestock grazing on moorland

£89/ha (increased from £53/ha

UPL3

Limited livestock grazing on moorland

£111/ha (increased from £66/ha)

UPL5

Keep cattle and ponies on moorland supplement (min. 70% GLU)

£18/ha

UPL6

Keep cattle and ponies on moorland supplement (min. 100% GLU)

£23/ha

UPL8

Shepherding livestock on moorland (remove stock for at least 4 months)

£74/ha (increased from £43/ha)

UPL10

Shepherding livestock on moorland (remove stock for at least 8 months)

£102/ha (increased from £48/ha)

Code

Nutrient Management

Payment Rate

CNUM2

Legumes on improved grassland

£102/ha

CNUM3

Legume fallow

£532/ha (reduced from £593/ha)

 

Code

Organic

Payment Rate

OFC1

Organic conversion – improved permanent grassland

£187/ha

OFC2

Organic conversion – unimproved permanent grassland

£96/ha

OFC3

Organic conversion – rotational land

£298/ha

OFC4

Organic conversion – horticultural land

£874/ha

OFC5

Organic conversion – top fruit

£1,920/ha

OFM1

Organic land management – improved permanent grassland

£20/ha

OFM2

Organic land management – unimproved permanent grassland

£41/ha

OFM3

Organic land management – enclosed rough grazing

£97/ha

OFM4

Organic land management – rotational land

£132/ha

OFM5

Organic land management – horticultural land

£707/ha

OFM6

Organic land management – top fruit

£1,920/ha

 

Code

Precision Farming

Payment Rate

PRF1

Variable rate application of nutrients

£27/ha

PRF2

Camera or remote sensor guided herbicide spraying

£43/ha

PRF4

Mechanical robotic weeding

£150/ha

 

Code

Soil Health

Payment Rate

CSAM2

Multi-species winter cover crop

£129/ha

CSAM3

Herbal leys

£224/ha (reduced from £382/ha)

SOH1

No-till farming

£73/ha

SOH3

Multi-species summer-sown cover crop

£163/ha

 

 

Code

Species Recovery and Management

Payment Rate

SPM3

Keep native breeds on grazed habitats supplement (more than 80%)

£146/ha

SPM5

Keep native breeds on extensively managed habitats supplement (more than 80%)

£11/ha

 

Code

Waterbodies

Payment Rate

WBD1

Manage ponds

£257/pond (max 3 ponds/ha)

WBD2

Manage ditches

£4/100m (both sides)

WBD3

In-field grass-strips*

£765/ha

WBD4

Arable reversion to grassland with low fertiliser input

£489/ha

WBD6

Remove livestock from intensive grassland during the autumn and winter (outside SDAs)

£115/ha

WBD7

Remove livestock from grassland during the autumn and winter (SDAs)

£115/ha

 

SFI26 agreement can be worth more than £100,000 per year.

Each farm business can have only one SFI26 agreement.

Agreement holders will not be able to increase the area or value of rotational actions beyond what they included in Year 1. Farmers will still be

able to move rotational actions between fields to match their crop rotation.

* These actions are included in the 25% area limit cap.

 

As ever, the reality of DEFRA schemes is that they are more complex than is presented. There remains considerable cross-over between SFI and Mid Tier Countryside Stewardship and which way is better to go will depend on each individual farming business. 

For professional advice regarding SFI and other rural grants and schemes, please contact one of our land agency teams: