Stacking analysis for Beef & Lamb: breakdown of SFI income for options A and B

The tables below show the total income the beef and sheep farms would receive for carrying out different SFI actions after the costs of carrying out the actions have been subtracted.

150 ha beef and sheep farm

150 ha beef and sheep farm: Option A – breakdown of income (Figure 2)

Code	Action	Income (£)
		Year 1	Year 2	Year 3
	SFI management payment	2,000	1,000	1,000
CSAM1	Assess soil, test SOM, produce soil management plan	632	632	632
CHRW1*	Assess and record hedgerow condition	800	800	800
CHRW3	Maintain or establish hedgerow trees	800	800	800
CIPM1	Assess integrated pest management and produce a plan	1,129	1,129	1,129
CNUM1	Assess nutrient management and produce a plan	652	652	652
CNUM2	Legumes on improved grassland	1,020	1,020	1,020
WBD1	Manage ponds	514	514	514

* Both sides of hedgerow entered
SOM: Soil organic matter

For CSAM1, soil organic matter testing was carried out on a third of the area entered into the action per year of the three year SFI agreement.

It was assumed that the farm incurred no extra cost for carrying out the actions CHRW1, CHRW3, CIPM1, CNUM1, CNUM2 and WBD1 and so the net payment rate was identical to the gross payment rate as published by Defra (and shown in Table 1 on the beef & lamb main page).

150 ha beef and sheep farm: Option B – breakdown of income (Figure 4)

Code	Action	Income (£)
		Year 1	Year 2	Year 3
	SFI management payment	2,000	1,000	1,000
CSAM1	Assess soil, test SOM, produce soil management plan	632	632	632
CHRW1*	Assess and record hedgerow condition	800	800	800
CHRW3	Maintain or establish hedgerow trees	800	800	800
CIPM1	Assess integrated pest management and produce a plan	1,129	1,129	1,129
CNUM1	Assess nutrient management and produce a plan	652	652	652
CNUM2	Legumes on improved grassland	1,020	1,020	1,020
WBD1	Manage ponds	514	514	514
CIGL1	Take improved grassland field corners or blocks out of management	1,230	1,230	1,230
CIGL2	Winter bird food on improved grassland	2,350	2,350	2,350

* Both sides of hedgerow entered

220 ha mixed farm

The tables below show the total income the 220 ha mixed farm would receive for carrying out different SFI actions after the costs of carrying out the actions have been subtracted.

220 ha mixed farm: Option A – breakdown of income (Figure 6)

Code	Action	Income (£)
		Year 1	Year 2	Year 3
	SFI management payment	2,000	1,000	1,000
CSAM1	Assess soil, test SOM, produce soil management plan	1,005	1,005	1,005
CHRW1*	Assess and record hedgerow condition	1,000	1,000	1,000
CHRW2*	Manage hedgerows	2,600	2,600	2,600
CHRW3	Maintain or establish hedgerow trees	1,000	1,000	1,000
CIPM1	Assess integrated pest management and produce a plan	1,129	1,129	1,129
CIPM3	Companion crop on arable and horticultural land	568	568	568
CIPM4	No use of insecticide on arable crops and permanent crops	765	765	765
CNUM1	Assess nutrient management and produce a plan	652	652	652
CNUM2	Legumes on improved grassland	1,020	1,020	1,020
PRF1	Variable rate application of nutrients	600	600	600
HEF1	Maintain weatherproof traditional farm or forestry buildings	2,546	2,546	2,546

* Both sides of hedgerow entered

For CSAM1, soil organic matter testing was carried out on a third of the area entered into the action per year of the three year SFI agreement.

It was assumed that the farm incurred no extra cost for carrying out the actions CHRW1, CHRW2, CHRW3, CIPM1, CNUM1 and CNUM2 and so the net payment rate was identical to the gross payment rate as published by Defra (and shown in Table 4).

As the 220 ha mixed farm does not have the means on farm to apply nutrients at a variable rate for PRF1, contractor costs are used. For farms that have equipment to carry out variable rate application of nutrients, the net payment, and so overall income from the action will be higher than that shown in the table.

220 ha mixed farm: Option B – breakdown of income (Figure 8)

Code	Action	Income (£)
		Year 1	Year 2	Year 3
	SFI management payment	2,000	1,000	1,000
CSAM1	Assess soil, test SOM, produce soil management plan	1,005	1,005	1,005
CHRW1*	Assess and record hedgerow condition	1,000	1,000	1,000
CHRW2*	Manage hedgerows	2,600	2,600	2,600
CHRW3	Maintain or establish hedgerow trees	1,000	1,000	1,000
CIPM1	Assess integrated pest management and produce a plan	1,129	1,129	1,129
CIPM3	Companion crop on arable and horticultural land	568	568	568
CIPM4	No use of insecticide on arable crops and permanent crops	765	765	765
CNUM1	Assess nutrient management and produce a plan	652	652	652
CNUM2	Legumes on improved grassland	1,020	1,020	1,020
PRF1	Variable rate application of nutrients	600	600	600
HEF1	Maintain weatherproof traditional farm or forestry buildings	2,546	2,546	2,546
CSAM3	Herbal leys	854	3,820	3,820
CIGL1	Take improved grassland field corners or blocks out of management	615	615	615
CIGL2	Winter bird food on improved grassland	1,525	1,525	1,525
CIGL3	4 m to 12 m grass buffer strip on improved grassland	7	7	7
CLIG1	Manage grassland with very low nutrient inputs (outside SDAs)	-123	-123	-123

* Both sides of hedgerow entered
SDA: Severely disadvantaged areas

The overall cost associated with CLIG1 was greater than the payment rate after the cost associated with replacement silage for feed was factored in. This is despite the inclusion of cost savings from the reduction in fertiliser usage. However, the price of silage is a key determinant. For this analysis, the price of silage used was £35/t fresh weight. A lower silage price, and depending on the amount of fertiliser used on farm, the net payment may be more favourable.

Back to Stacking options for SFI: Beef & lamb