Background to the Sustainable Farming Incentive

The Sustainable Farming Incentive is a new government scheme that rewards environmental land management. Find out more about the new policy and keep checking back for updates as the scheme develops.

The area-based Basic Payment Scheme (BPS) in England is being phased out. By 2028, farmers will no longer receive BPS payments. Instead farmers will have access to new payment systems based on environmental outcomes and public goods.

In England the Sustainable Farming Incentive (SFI) is underway. A pilot version of this scheme began towards the end of 2021, followed by a wider rollout in 2022 which had three standards on offer. SFI 2023 had 23 individual actions available for farmers. The current SFI expanded offer has over 100 actions for farmers to choose from and applications are open on a rolling basis. Policy for the SFI is still under development and continuously evolving as part of Defra's co-design approach. 

1. Maintaining and enhancing the natural environment
2. Reducing carbon emissions
3. Improving the health and welfare of farmed animals

Applications for the Sustainable Farming Incentive (SFI) are open.

There are two types of action available under the expanded offer:

• SFI actions which farmers can apply for without specialist advice or prior endorsement (this covers the majority of actions)
• 'endorsed SFI actions' for certain priority habitats or species and heritage features. These require prior endorsement from Natural England or Historic England

There are 10 actions referred to as 'limited actions':

• CIPM2: Flower-rich grass margins, blocks or in-field strips
• CAHL1: Pollen and nectar flower mix
• CAHL2: Winter bird food on arable and horticultural land
• CAHL3: Grassy field corners or blocks
• CIGL1: Take improved grassland field corners or blocks out of management
• CIGL2: Winter bird food on improved grassland
• WBD3: In-field grass strips
• AHW1: Bumblebird mix
• AHW9: Unharvested cereal headland
• AHW11: Cultivated areas for arable plants

The total area entered under these actions must not exceed 25% of the total agricultural area of the farm.

The 'find funding for land or farms' tool provides information on the various actions available for different types of agricultural land as well as available grants.

For other information including eligibility and agreement details, visit the SFI guidance page.

Offer initially available to farmers in England who are:

• Keepers of cattle, pigs and sheep with more than 50 pigs, 20 sheep or 10 cattle
• Currently eligible for BPS

 Defra will fund a yearly visit from a vet, or vet-led team. Other details include:

• Time-limited offer for three years
• Includes diagnostic testing for priority diseases, bespoke advice on health, welfare biosecurity and responsible use of medicines
• Farmer and vet to agree a series of recommended actions that can be monitored on a yearly basis
• Testing will focus on identifying priority disease and conditions in cattle, pigs and sheep:
  • Cattle: Bovine Viral Diarrhoea (BVD)
  • Pigs: Porcine Reproductive and Respiratory Syndrome virus (PRRS)
  • Sheep: Parasitic resistance to anthelmintic treatments
• Payment rates per review:
  • Pigs - £684
  • Sheep -£436
  • Beef cattle - £522
  • Dairy cattle - £372