In a significant policy shift for England's countryside, smaller farms and new entrants are to be given priority access to crucial government nature funding. The Environment Secretary, Emma Reynolds, is set to announce the change at the Oxford Farming Conference.
Application Windows Prioritise Smaller Holdings
Emma Reynolds will confirm that an application window for the Sustainable Farming Incentive (SFI) will open solely for smaller farms and new entrants in June 2024. Larger farming operations will only be permitted to submit their applications from September onwards. This move represents a direct attempt to rebalance post-EU agricultural subsidies, which have historically favoured larger landholdings.
The SFI is a central component of the UK's replacement for the EU's Common Agricultural Policy (CAP). Unlike the old CAP, which paid farmers based on the amount of land they managed, the SFI aims to pay for public goods. This includes work that benefits nature, improves soil health, and enhances the landscape, rather than subsidising food production or land ownership alone.
Limited Funds and Past Controversies
A critical factor driving the new prioritisation is the scheme's finite budget. The fund has a capped amount of money, meaning the scheme closes once a sufficient number of successful applications are received. This limitation caused major controversy in March 2023 when the SFI was abruptly shut down. It later emerged that around 3,000 farms had been incorrectly blocked from applying after the money ran out, sparking outrage within the farming community.
The Department for Environment, Food and Rural Affairs (Defra) has been defending the nature schemes' value for money to the Treasury, arguing they are not merely subsidies for wealthy landowners. This is seen as an effort to protect the budget during economically challenging times. Despite this, the overall budget was cut by £100 million during last year's spending review.
Industry Reaction and Future Certainty
Reactions from farming bodies have been mixed. Gavin Lane, President of the Country Land and Business Association, stressed the need for universal access: "It is essential that all farmers can access the Sustainable Farming Incentive scheme as soon as possible, regardless of farm type or size, to deliver the greatest benefits to the environment."
Conversely, Martin Lines, CEO of the Nature Friendly Farming Network, welcomed the focus on smaller operations. "Too often in the past, England's agri-environment schemes have been a race to be first over the line, favouring those with the time and money to navigate complex applications," he said. He praised the government for recognising the social and environmental value provided by smaller, active farms.
In her speech, Reynolds is expected to offer reassurance, stating: "You will have the certainty you need to plan – clear budgets, clear timelines, clear future roadmap, and growth built on strong foundations." The success of this new approach will depend on how effectively it supports the farms most in need while delivering tangible environmental benefits across the English landscape.
