The Sustainable Farming Incentive (SFI) is the first of 3 new environmental schemes being introduced under the Agricultural Transition Plan. The other 2 schemes are Local Nature Recovery and Landscape Recovery.
SFI aims to help farmers manage land in a way that improves food production and is more environmentally sustainable.
Farmers will be paid to provide public goods, such as:
  • improved water quality
  • biodiversity
  • climate change mitigation
  • animal health and welfare
In 2022, SFI aims to:
  • encourage actions that improve soil health
  • recognise how moorland provides benefits to the public (public goods)
  • improve animal health and welfare by helping farmers with the costs of veterinary advice for livestock

SFI standards agreements​

You’ll be eligible to apply for an SFI standards agreement if you’re a farmer who is eligible for the Basic Payment Scheme (BPS), with land in England. Read more information about eligibility for SFI.

Standards​

In 2022, there will be 3 standards available, with different levels and payments. Those are:

StandardLevelPayment
Arable and horticultural soilsIntroductory£22 per hectare
Intermediate£40 per hectare
Improved grassland soilsIntroductory£28 per hectare
Intermediate£58 per hectare
MoorlandIntroductory£10.30 per hectare
Additional payment£265 per agreement
There will also be an additional annual payment of £6.15 per hectare (ha) for common land entered into a separate SFI standards agreement.
In the future, more standards will be introduced. You’ll be able to add these to your agreement, as well as increase levels and add land.
Read guidance about how SFI standards work.

Agreements​

An SFI standards agreement will last for 3 years. You need to have ‘management control’ of the land entered into the agreement for its 3-year duration. Read the information about eligibility for more details about ‘management control’.

Payments​

You’ll be paid on a quarterly basis, with the first payment made 3 months after your agreement starts.
Read more about getting paid for an SFI standards agreement.

Applying​

SFI applications opened for BPS eligible farmers from 30 June 2022.
Applications will remain open, so you can apply at a time that works best for you. If it’s necessary to close applications, this date will be publicised, including on GOV.UK, giving you 6 weeks’ notice.

Our new SFI application service is designed to be quicker and more straightforward for farmers. The service includes some new functionality that allows us to automate the checks we need to do and process applications much more quickly than we’ve previously been able to do.
We’re rolling out the new functionality during July in a controlled way, so we can make sure we’re able to offer everyone the right level of service and support during this initial phase. This means that while all BPS eligible farmers can apply for SFI, during the first few weeks of rollout there will be different ways into the application service.

BPS eligible farmers who do not have an existing agri-environment agreement can sign into the Rural Payments service now to apply for SFI on eligible land outside a common.

BPS eligible farmers who have an existing agri-environment agreement, or who want to apply separately on common land, need to contact us to register their interest. We’ll then arrange for them to start their application. In this case, you can either email us at [email protected] (using ‘Apply early for SFI’ as the email subject and including your SBI) or call us on 03000 200 301 (Monday to Friday 8.30am to 5pm, except bank holidays).

Capital items funding​

The standards will not include any capital items funding in 2022. You can apply for existing capital items funding offers on land parcels entered into an SFI standards agreement, such as Countryside Stewardship capital grants.
In the future, SFI will include capital items funding to help you complete the actions in the standards. More details about this will be published on GOV.UK.

Annual health and welfare review​

The annual health and welfare review will provide funding to eligible livestock farmers. This funding will cover the cost of an annual review of your livestock by a vet chosen by you.
This is part of the SFI offer in 2022 and sits alongside the environmental standards. You do not need to have an SFI standards agreement to be eligible to apply for the annual health and welfare review funding.

Read more information about the annual health and welfare review.

First Published 30 March 2022
Last updated 30 June 2022 + show all updates
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Defra Farming
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