‘Cruellest betrayal’ as Defra halts new SFI applications

Farmers across England are facing another devastating setback following the Labour government’s decision to stop accepting new applications for the Sustainable Farming Incentive (SFI) scheme.

The announcement on Tuesday 11 March marks the closure of SFI24, which had already reached its funding limit for the current budget cycle.

With unprecedented demand for the scheme, many farmers who have not yet applied will be feeling frustrated and uncertain about their future in sustainable farming.

See also: Defra indicates spending review pivotal to future of SFI

The SFI scheme was launched as a key part of the previous Conservative government’s post-Brexit Environmental Land Management (ELM) programme to encourage sustainable farming practices, which has seen over 50,000 farm businesses participating.

The largest of these schemes, SFI24, now has more than 37,000 multi-year live agreements, paying farmers for sustainable practices and nature recovery.

However, with the funding cap now reached for this year, many farmers will be left wondering if they will ever be able to access the same level of support in the future.

Farmers betrayed again – CLA

The Country Land and Business Association (CLA), which represents more than 20,000 rural businesses across England and Wales, described the government’s decision to close SFI24 as the “most cruel betrayal” to date.

It follows a disastrous Autumn Budget and a string of anti-government policies, including drastic cuts direct farm support, increased employer costs and controversial plans to impose farm inheritance tax from April 2026.

CLA president Victoria Vyvyan fiercely criticised the government’s move, calling it a direct attack on sustainable farming and nature recovery efforts.

“SFI was the most ambitious, forward-thinking, and environmentally friendly agricultural policy seen anywhere in the world,” Ms Vyvyan said.

“It promised a fairer future for farmers and a greener future for the world. Labour promised to support it, but at the first available opportunity, they have instead scrapped it.

“Of all the betrayals so far, this is the most cruel. It actively harms nature. It actively harms the environment.”

Farron outraged

Writing on X, Tim Farron, the Liberal Democrat’s agriculture spokesperson, also blasted the decision, warning that hill farmers and smaller farmers would suffer most.

“This is an absolute outrage. Farmers lose 76% of their Basic payment this year and now can’t get into SFI to compensate,” he tweeted.

“The large landowners will already be in schemes, so it’s hill farmers and others below minimum wage who suffer. Don’t we care about food security and nature?”

The government’s original goal was to help shift UK agriculture toward more environmentally friendly practices, including biodiversity recovery, carbon reduction, and sustainable food production.

However, with over half of the country’s farmed land now under government schemes, including SFI, the decision to close the scheme to new applicants has sparked widespread outrage.

Merseyside arable farmer Olly Harrison, who helped organised two farmer protests in London against the government’s farm IHT policy, said: “Yet again, this shows the government’s sheer lack of understanding of the agricultural industry.

“Farming works in cycles and you can’t turn it on a dime.”

Defra defends decision

Daniel Zeichner, Defra minister for food security and rural affairs, defended the government’s decision.

He said: “More farmers are now in schemes and more money is being spent through them than ever before.”

He reassured existing participants that all current agreements would continue to be funded, and any outstanding eligible applications would be processed.

However, for the thousands of farmers who were still hoping to apply, the decision has left them disappointed and feeling excluded from an essential initiative for the future of UK farming.

The Labour government justified its decision by claiming that it had inherited an underspent farming subsidy system, which resulted in millions of pounds being left unallocated to farm businesses in previous years.

In response, the government allocated £5bn over two years to the farming sector, marking the largest sustainable farming budget in UK history.

Despite this, the unprecedented demand for the scheme led to the exhaustion of available funds, leaving the government, it says, with no choice but to impose a cap on the current funding cycle.

While the government has promised a “reset” of the SFI scheme, including a new and improved version to be introduced after the Spending Review, many in the farming community remain unconvinced.

Details of the revised programme have yet to be confirmed, leaving farmers unsure of how the future of sustainable farming will unfold.

The government has pledged that the new scheme will focus on food production, resilience, and nature recovery.

However, with the cap on SFI funding now reached, many farmers will fear that the necessary support to enable them to adopt sustainable practices will remain out of reach, threatening the long-term viability of the UK’s agricultural sector.