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)

CodeActionIncome (£)

 

 

Year 1Year 2Year 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)

CodeActionIncome (£)

 

 

Year 1Year 2Year 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)

CodeActionIncome (£)

 

 

Year 1Year 2Year 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)

CodeActionIncome (£)

 

 

Year 1Year 2Year 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.

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