One in eight eligible farmers have now submitted a Sustainable Farming Incentive application, with more than 11,000 applications to the scheme and more than 100 farmers applying every day, according to Defra.

As a result, the government’s figures show that 174,000ha of arable land will no longer be receiving any insecticide, while some 15,000km of hedgerows will be under active management.

To date, only about 15 applications that put the whole farm down to non-productive actions have been received, allaying some of the concerns about food security.

See also: 2023 SFI to regain lost third of BPS for Warwickshire grower

From summer 2024, there will be a combined Sustainable Farming Incentive/Countryside Stewardship (SFI/CS) offer, allowing applicants to select the appropriate actions from both schemes.

Up to 50 new actions are on their way, including options that reward maintaining habitat rather than just creating it, varying from three to five years.

Some can be rotated and there will be flexibility to reduce the area entered into the agreement – as long as it’s no more than 50% of the original area.

What does SFI/CS mean for arable farms?

For the environment to benefit, between 3% and 5% of the arable land in lowland England needs to be managed effectively using multifunctional options, says Jim Egan, technical adviser at Kings.

That means providing varied habitat, introducing connectivity, protecting water and improving soils, he summarises, while making sure that a profitable farm business remains.

“There are options that fit within the rotation on most farms. The key is to make them work for your farm business.”

Most growers are aware of the less productive areas of the farm and should be able to identify up to 7% of land that can be used in such a way. “Planning is key. Depending on what options you choose, you want them to succeed.

“So flower-rich grass margins, for example, must not be put on a north-facing site. Likewise, cover crops drilled in the middle of September won’t grow.”

What’s the future for break crops?

One of the possibilities with the SFI is to use rotational actions to replace low margin, risky break crops, agree commentators.

High-performing crops on good soils remain a better bet, they point out, but unpredictable weather and volatile markets are a concern, especially with pulses, while difficulties remain with oilseed rape.

Figures prepared by both Niab and Ceres Rural put this into context – the average net margin from a five-year rotation based on combinable crops is £463/ha (see “Five-year rotation (£/ha)”), while the net margin from various SFI actions ranges £152-£560/ha (see “Margins from SFI actions (£/ha)”).

While individual farm circumstances will have a bearing, there are plenty of commentators who predict that rotations will look different this autumn.

How will rotations change?

Farmers should avoid a knee-jerk reaction to this year’s weather conditions, believes John Price, farming consultant at Ceres Rural, who says that rotation planning is critical.

“Don’t cast productivity aside,” he says. “SFI options are not the easy win they are being portrayed as, especially if they aren’t managed right.

“Wheat is the engine room on most arable farms, so be careful of just chasing payments – think about the following wheat.”

Hamish Wardrop, national manager of Agrovista’s rural consultancy, agrees. “Look beyond the headline value of actions and focus on the longer term benefits they can create. They aren’t box-ticking exercises for immediate payment.”  

For this reason, actions that complement crops rather than compromise them are preferable in many situations.

John highlights IPM3, the companion planting action, worth £55/ha, as a good example of this, even in wheat.

“You get additional income and a soil health benefit. Seed rates of the companion will need attention, as will the ability of different species to survive pre- and post-emergence herbicides.”

If break crops are under review for poor or inconsistent results, he highlights three main alternatives:

1. Legume fallow – as NUM3, this is now a more flexible action, which can be destroyed in good time for establishing the next crop. It can also be cut and the cuttings removed to help with grassweed control, but “on-the-ball” management is essential to ensure the aims are met and following crops do not suffer. “When you’ve factored in the costs that apply, you’re looking at £360/ha, which can take the shine off it.”
2. Herbal leys – as SAM3, this action offers both better grassweed control and good-quality forage potential, believes John, who points out that it can be productive. “Team up with a local livestock farmer and you can get paid for forage as well as receiving the SFI payment. There can be a farmyard manure benefit too if livestock are involved.”
3. Winter bird food on improved grassland/arable land – in the right situations, AHL2 or IGL2 can be a better option than a legume fallow, says John, with the grassland action allowing for two cuts of high-energy forage before the start of July. However, it can’t be followed by an autumn-drilled crop and growers should be aware of encouraging a ryegrass seed bank.

“Given the various caveats and rotational restrictions that apply, herbal leys are a good middle-ground option.

“Trying out some of these options makes sense – you can start small and then add in future years. Remember that you do have to deliver the aims of any action,” John says.

What about new actions?

The new actions coming in summer 2024 can be added to an existing agreement on the anniversary date or included in a separate scheme.

The variable-rate application of nutrients is being well received, reports John, as the technology is already on farms and the payment applies to the whole crop area.

Detail is still needed for actions such as no-till farming, which has a payment rate of £73/ha, and the multi-species spring and summer cover crop, which pays £153-£163/ha.

Others that are bound to appeal, especially after such a wet winter, include the 6-24m 3D waterbody buffer strip, a five-year action with a payment of £1,182/ha, and another five-year action to manage features on arable land for flood and drought resilience, at £1,241/ha.

What else?  

John highlights that the low-input cereal option, at £354/ha, might give a boost to the spring oat crop, which has been hit by the loss of herbicides. “Add in the cover crop payment of £129/ha and it could put oats back in the frame.”