The Sustainable Farming Incentive (SFI) is a key component of the UK government’s Environmental Land Management (ELM) scheme, designed to support farmers in adopting sustainable and regenerative agricultural practices. Its main purpose is to reward farmers and land managers for environmental stewardship, including improving soil health, enhancing biodiversity, reducing carbon emissions, and managing water resources effectively.
Although the SFI is less rigid compared to support schemes of the past, farmers and landowners will still have to prove compliance with the rules and the delivery of the SFI scheme.
Here are the key compliance points for participating in the SFI:
- Eligibility and registration
- Farms in England only.
- Must be registered with the Rural Payments Agency (RPA).
- Farmers must have at least 5 hectares of eligible land (arable, grassland, or other) and claim Basic Payment Scheme (BPS) payments or be a tenant with management control for the duration of the agreement.
- Agreement terms
- Three-year agreements, with flexibility to add additional standards and land annually.
- Participants must follow the land management actions specified for their chosen standards and levels.
- Inspections and checks by the RPA ensure actions are implemented correctly.
- Environmental standards
- Farmers must meet specific standards within different land types, choosing levels of ambition: introductory, intermediate, or advanced. Each level specifies actions and outcomes. Some key standards include:
- Arable and horticultural land
- Arable and horticultural soils
- Farm woodland
- Hedgerows
- Improved grassland
- Improved grassland soils
- Low and no input grassland
- Water body buffering
- Farmers must meet specific standards within different land types, choosing levels of ambition: introductory, intermediate, or advanced. Each level specifies actions and outcomes. Some key standards include:
- Record keeping
- Farmers must maintain accurate records for land management activities, including dates, inputs (such as fertilisers or pesticides), and any actions specified by SFI standards.
- Records may need to be submitted upon request during inspections or audits.
- Avoiding cross-compliance breaches
- Adherence to existing cross-compliance rules under the BPS or similar rules is essential. Farmers must follow good agricultural and environmental conditions (GAECs) and Statutory Management Requirements (SMRs) to avoid penalties.
- Environmental outcomes and benefits
- Farmers are expected to demonstrate outcomes that align with SFI objectives, focusing on improvements in soil health, water quality, biodiversity, and carbon sequestration.
- Payments and claims
- Payments are made quarterly. Farmers must claim payments correctly and submit evidence if required.
- Failure to comply with the standards or actions agreed upon may result in repayment or reduction of payments.
By focusing on flexibility, simplicity, and environmental impact, the SFI aims to enhance sustainable farming while rewarding farmers for their stewardship. Meeting these compliance points is crucial to ensure continued participation and payment under the scheme.
Discover how Habitat Regeneration can support your SFI projects, delivering effective, sustainable land management solutions. Contact us today to explore how we can help you achieve your environmental and farming goals.
