SFI Update

As many will be acutely aware, the Government stopped accepting new applications for SFI on 11^th March 2025. The Government confirmed the reason for closure was due to the budget for SFI having been allocated, quoting more than 37,000 live SFI agreements. However, the closure was made very abruptly and without warning, leaving many farmers and land managers in limbo, particularly if time had been spent preparing applications but not yet finalised and submitted. The closure was unforeseen and contradicted the government's previous guidance, which stated 6 weeks' notice would be given if the Government needed to close applications.

The Minister for Food Security and Rural Affairs, Daniel Zeichner, has now released a statement confirming that an error was made when the current scheme was closed to applications. He has conceded that he was unaware the RPA had provided reassurance of 6 weeks' notice before any scheme closure for applicants that had started and saved, but not submitted, an application for SFI. This statement follows threats of legal action from a group of NFU backed farmers based on the government's withdrawal of the previous commitment to provide notice before scheme closure.

The reopening of the SFI is however only open to a select number of farmers and land managers and for a limited time period. Only those that had started an application within 2 months of 11^th March 2025 will be able to finalise and submit their applications. It is understood that this will provide an opportunity to approximately 3,000 applications that were started on or after the 12^th January 2025. The RPA have advised that eligible applicants will have a 6 week window to submit their application and RPA advisors will make contact with applicants to advise when the window will open and close.

Whilst this is a positive response for those that have been campaigning, it is somewhat still a compromise. A new financial limitation will be applicable to all of those that do wish to proceed with finalising and submitting their applications. The Government have calculated the median average agreement value for existing SFI agreements at £9,300 per annum for the duration of the agreement and this is therefore the maximum value eligible applicants can apply for. In addition to this only one application can be submitted per farm business and agreement holders will not be able to add more land to rotational actions after the first year of their agreement.

Further timelines for this temporary reopening are set to follow and the wider reopening of SFI is still not anticipated to follow until 2026.

For more information or guidance, contact our office today on 01768 866 611.