Sustainable Farming Incentive - ELIGIBILITY UPDATE

An overview of the Sustainable Farming Incentive pilot scheme

In June Defra launched the scheme by inviting Expressions of Interest in the first SFI National Pilot.

If you’ve offered an Expression of Interest please let us know. Building our knowledge of how organic farmers approach all schemes, especially those currently being designed, helps us to guide the teams at Defra, the RPA and Natural England.

Defra have said their ambition is to encourage Countryside Stewardship scheme holders to apply to the SFI 2022. They have now put some detail up online at GOV.UK.

This updated information shows that farms, organic and non-organic, with an option within a Countryside Stewardship Scheme may be able to apply to the SFI where the land meets the eligibility criteria, and where the option does not attract ‘double-funding’.

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The scheme will also be open to farmers eligible for BPS, who already have an agreement under an existing agri-environment scheme (such as Countryside Stewardship and Environmental Stewardship) – provided the Sustainable Farming Incentive standard they choose is compatible with their existing agreement and does not result in them being paid twice for similar activities.

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OF&G are working with teams across Defra including the Future Farming team, the RPA and NE and also with colleagues in Defra’s organic branch to help them look at how they can recognise and formally incorporate certified organic land within the SFI.

Organic Farms will be able to enter land under a CS Option which is part of a CS Mid-Tier Countryside agreement into SFI and establish an SFI Standard if:

A. The land being entered for the SFI standard meets the basic eligibility requirements for the standard.

B. The CS option is not funding the same activities / outcomes as the SFI standard.

C. The CS option is not funding activities / outcomes which would be incompatible with those of the SFI standard.

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An example of CS/SFI comparisons - the 4 most popular Organic CS options and their relationship to the two SFI soil standards:

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Excerpt from Defra SFI upate:

Agricultural Transition Plan: June 2021 progress update

5.2 What the Sustainable Farming Incentive will include from 2022

We plan to make some core elements of the scheme available from 2022. Then, we will gradually expand the scheme until all elements are available from 2024/25 onwards.

The core elements of the Sustainable Farming Incentive that will be available in 2022 are:

●      arable and horticultural soils standard

●      improved grassland soils standard

●      moorland and rough grazing standard

●      Annual Health and Welfare Review

5.3 Eligibility

When the scheme starts in 2022:

●      the environmental standards will be open to farmers who are eligible for payments under the Basic Payment Scheme (BPS)

●      the Annual Health and Welfare Review will initially be available for all commercial^[3] cattle, pig and sheep keepers who are eligible for BPS

The scheme will also be open to farmers eligible for BPS, who already have an agreement under an existing agri-environment scheme (such as Countryside Stewardship and Environmental Stewardship) – provided the Sustainable Farming Incentive standard they choose is compatible with their existing agreement and does not result in them being paid twice for similar activities.

We will publish clear guidance and make the application process as straightforward as possible to help people with Countryside Stewardship and Environmental Stewardship agreements identify which land is eligible for the standards.

For example, if you are already being paid for establishing a cover crop under a Countryside Stewardship option on land that is at risk of soil erosion or surface runoff, then you will not be able to also enter that same land into the Sustainable Farming Incentive arable and horticultural soils standard where similar activities are required. You may however be able to establish cover crops on land on other parts of your holding, where appropriate.

Between 2022 and 2024, the Sustainable Farming Incentive will run alongside existing schemes. Farmers will be able to choose which schemes to participate in and can participate in multiple schemes if they wish, but they will not be paid twice for similar activities.

[3] Commercial holdings are those with at least one of the following: more than 20 sheep, more than 10 cattle, more than 50 pigs. This is the definition used in the June Survey of Agriculture and Horticulture, England.

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5.8 Developing the scheme between 2022 and 2024

Earned recognition

We are exploring how membership of existing assurance schemes might play a role in providing earned recognition for farmers with Sustainable Farming Incentive agreements. Earned recognition provides an opportunity for farmers to become ‘trusted partners’ and benefit from reliably demonstrating delivery and adherence to assurance scheme standards – for example, reducing the likelihood of being visited to monitor and review the delivery of their agreement.

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Defra plan to open applications for the Sustainable Farming Incentive in spring 2022 and will make the first payments before the end of 2022.

Go to GOV.UK for more details including payment rates:

https://www.gov.uk/government/publications/agricultural-transition-plan-june-2021-progress-update/agricultural-transition-plan-june-2021-progress-update#details-of-the-sustainable-farming-incentive-offer-in-2022

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