Stacking analysis for Dairy: breakdown of SFI income for options A and B

The tables below show the total income the 105 ha dairy farm would receive for carrying out different SFI actions after the costs of carrying out the actions have been subtracted.

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 466 466 466
CSAM2 Multi-species winter cover crop -24 -24 -24
CHRW1* Assess and record hedgerow condition 378 378 378
CHRW2* Manage hedgerows 983 983 983
CHRW3 Maintain or establish hedgerow trees 378 378 379
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 2,040 2,040 2,040
PRF1 Variable rate application of nutrients 367 367 367
WBD1 Manage ponds 257 257 257

*Both sides of the hedgerow entered
SOM: Soil organic matter

It was assumed that the farm incurred no extra cost for carrying out the actions CHRW1, CHRW2, 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 dairy main page).

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.

For CSAM2, the costs associated with carrying out the action were found to be higher than the payment received for the 105 ha dairy farm, resulting in an overall deficit of £24 each year of the scheme. This deficit, however, can be absorbed by income received from other actions where the payment outweighs the cost. The cost of seed used and spraying and drilling costs will also vary from farm to farm and so may provide a positive payment in other cases.

As the 105 ha virtual dairy 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.

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 466 466 466
CSAM2 Multi-species winter cover crop -24 -24 -24
CHRW1* Assess and record hedgerow condition 378 378 378
CHRW2* Manage hedgerows 983 983 983
CHRW3 Maintain or establish hedgerow trees 378 378 378
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 2,040 2,040 2,040
PRF1 Variable rate application of nutrients 367 367 367
WBD1 Manage ponds 257 257 257
CSAM3 Herbal leys 854 3,820 3,820
CIGL1 Take improved grassland field corners or blocks out of management 36 36 36
CIGL2 Winter bird food on improved grassland 983 983 983

*Both sides of hedgerow entered

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