Calls for Defra budget transparency after SFI closure

Tens of thousands of English farmers are facing a cashflow crisis after Defra abruptly closed the Sustainable Farming Incentive (SFI) 2024 scheme to new applications, triggering outrage across the farming community.

The decision, announced on Tuesday March 11, has raised industry calls for transparency over how Defra allocate and spend the farming budget.

Defra has promised a “reset” of the SFI scheme, with a revised version due after the spending review in late spring.

Further details on the future of the scheme and when it may reopen for applications are expected this summer.

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

Existing agreements will be honoured, and pending eligible applications will still be processed.

But the sudden closure has sparked serious concerns over Defra’s financial management and communication.

This is particularly because it failed to provide the promised six-week notice of closure for SFI applications.

Industry experts are now calling for greater transparency in how the £2.4bn allocated for farming support schemes in 2025-26 is being spent.

‘£400m budget surplus’

Julia Aglionby, professor at the University of Cumbria and executive director of the Foundation for Common Land, estimates £400m could remain unspent in Defra’s farming budget for 2025-26 due to lower-than-expected expenditure on support schemes.

This surplus, she suggests, could potentially be used to contribute to the government’s planned increase in the defence budget.

Despite requests from Farmers Weekly for a detailed breakdown of the budget, Defra and the Treasury have so far failed to provide the requested figures.

Critics are now questioning how these funds are being allocated.

George Dunn, chief executive of the Tenant Farmers Association, calling for full transparency on how the £2.4bn is being distributed across various schemes.

This includes the SFI, legacy programmes, and new initiatives such as Landscape Recovery.

With rising input costs and volatile commodity prices, many farmers were depending on SFI payments to manage financial risk.

AHDB economics and analysis director David Eudall stated that the unexpected move would further increase uncertainty for farmers already grappling with a strained budget.

“With inflation and the farming budget stretched, many farmers in England were relying on SFI for financial risk management. This unexpected move increases uncertainty amid volatile markets and higher costs,” he added.

Farron vents fury

Tim Farron, the Liberal Democrat’s agriculture spokesperson, clashed with Defra farming minister Daniel Zeichner in Parliament on Wednesday 12 March over the government’s decision to close SFI 24 without warning for new applications.

Mr Farron, MP for Westmorland and Lonsdale, strongly criticised the move, accusing the government of betraying upland farmers, many of whom now find themselves locked out of the scheme.

He pointed to an estimated £400m surplus in the farming budget and questioned why funds intended to support farmers were not being used to help those most in need, especially hill farmers.

In response, Defra farming minister Daniel Zeichner defended the decision, highlighting increased Higher Level Stewardship payments for upland farmers and asserting that the overall farm budget was being spent as intended.

French-style protests threatened

Separately, Merseyside arable farmer Olly Harrison warned protests could escalate, suggesting farmers could soon adopt more extreme tactics in response to the government’s policies.

“The pressure cooker is about to blow and the public understand why.”