Defra ‘blew up apple cart’ with SFI closure, says NFU chief

Farm leaders have warned of a growing crisis following the sudden closure of the Sustainable Farming Incentive (SFI) scheme to new applicants, describing it as a move that has “blown up the apple cart” and sent shockwaves through the industry.

Following an emergency meeting convened on Monday (17 March) with Defra farming minister Daniel Zeichner, NFU president Tom Bradshaw called the decision a “stick of dynamite” that has destabilised an already fragile sector.

While Defra secretary Steve Reed had previously vowed not to “upset the apple cart” and promised ongoing support for the Environmental Land Management programme, Mr Bradshaw argued that the SFI closure had done precisely that, “blowing the apple cart up”.

See also: ‘Cruellest betrayal’ as Defra halts new SFI applications

The meeting brought together key industry figures from organisations in the Farming Roundtable to address the financial and operational uncertainty faced by farmers who had already begun their SFI applications but are now unable to access promised payments.

Call for further clarity

The group discussed the delays in SFI payments and the lack of clarity surrounding the £1.05bn budget allocated for the scheme over two years, as well as concerns about the allocation of the total £5bn Defra budget for farmers in England.

“It felt like the minister felt we could come into the meeting, move on to what came next, rather than reflecting on how we’d got into the mess that we’re in,” said Mr Bradshaw, reflecting on the meeting.

With little transparency about the budget, Mr Bradshaw called for more regular updates and a clearer breakdown of how funds are being allocated, noting that the previous EU system had offered far more transparency for stakeholders.

Mr Bradshaw made it clear that the abrupt closure had left many farmers, especially those in upland areas, commoners and tenants who have already lost Basic Payment Scheme support, facing significant financial challenges.

“The trust of the industry in the sponsoring department is at an all-time low,” Mr Bradshaw told Farmers Weekly after the meeting, warning that rebuilding this trust would be a difficult task.

He also noted that the lack of communication from Defra had left farmers unsure how to recover costs for the environmental work they had already undertaken.

Farmers, Mr Bradshaw added, need stability to plan for the future, but the ongoing uncertainty surrounding the SFI’s future is putting both food production and sustainability targets at risk.

“Without clarity, farmers won’t be able to continue implementing essential environmental work,” he warned.

George Renner, representing the Tenant Farmers Association (TFA), said there were “no answers” for tenant farmers who had bid for tenancies with the expectation that the SFI would be included in their contracts.

“It was all very wishy-washy. The impression I got was Defra is in chaos. They have no idea how the decisions they make affect businesses. They have no idea how to manage the budget,” he said.

“I came away from the meeting with no idea of what direction of travel you should be taking in terms of your farm business.”

Mr Renner said Defra had hinted at a scaled-back version of the SFI, with a potential announcement in the summer, followed by a full reset in the following year.

Summer announcement

Defra has committed to revisiting the SFI and working with stakeholders to refine the scheme, with an update expected in the summer.

However, no specific timeline has been set for when the scheme may reopen to new applicants.

In defence of the closure, a UK government spokesperson stated that the £1.05bn cap for SFI had been reached, with funds either paid out or committed to existing agreements.

The spokesperson also confirmed that the government will “reopen a new and improved SFI scheme with more details coming this summer”.

• Attendees included NFU, NFU Cymru, Country Land and Business Association, National Sheep Association, National Beef Association, Livestock Auctioneers Association, Sustainable Food Trust, British Poultry Council, National Pig Association, Tenant Farmers Association, Soil Association, Royal Association of British Dairy Farmers, the British Agriculture Bureau, and British Free Range Egg Producers Association.