New limits to SFI.

Goweresque

Member
Location
North Wilts
Exactly. Whether by accident or design, that’s how it worked and it worked well. BPS was enough of a payment to reduce the risk of production to comfortable levels but not enough free money to make it sensible to stop production entirely. BPS made production worthwhile from a risk perspective simply because it lessened the risk of going bust if you carried on producing, while sometimes things came good and production added to BPS.
BPS underpinned production but wasn’t a big enough payment to discourage it. You ajways had the chance of making a bit more on top by producing but with BPS as the safety net if markets or weather conditions went wrong.
Looking back it was a damn good thing.
Pretty much spot on. Yes you could have taken the £80/acre and done nothing, but your asset (the land and buildings) would have deteriorated slowly over time. Farmland requires maintenance, and that has to be paid for. BPS alone was not enough to both live on and maintain the fabric of a farm, so the only way it could happen was via a combination of the BPS and earnings from production. 99%+ of farmers continued to produce despite being able to stop and still claim BPS, so the public got its 'public good' via increased levels of production and lower output prices. Allied to the ability to sign up to stewardship schemes that did incentivise people to move unproductive land over to the birds and the bees, the whole system seemed to create a reasonable balance between production and conservation.

Now we have a system that does not incentivise production at all, yet the powers that be are obviously worried about production falling, and are stopping people from ending production. Its totally unbalanced.
 

Huno

Member
Arable Farmer
Pretty much spot on. Yes you could have taken the £80/acre and done nothing, but your asset (the land and buildings) would have deteriorated slowly over time. Farmland requires maintenance, and that has to be paid for. BPS alone was not enough to both live on and maintain the fabric of a farm, so the only way it could happen was via a combination of the BPS and earnings from production. 99%+ of farmers continued to produce despite being able to stop and still claim BPS, so the public got its 'public good' via increased levels of production and lower output prices. Allied to the ability to sign up to stewardship schemes that did incentivise people to move unproductive land over to the birds and the bees, the whole system seemed to create a reasonable balance between production and conservation.

Now we have a system that does not incentivise production at all, yet the powers that be are obviously worried about production falling, and are stopping people from ending production. Its totally unbalanced.
As rents havent reduced.. most tenants are no longer spending anymore money on their landlords estates than is legally required by their tenancies... Looks like agricultural productivity is in nose dive? DEFRA knew this at the beginning but only listened to owners in SFI design.. It is not Cricket but a 5 day match is a long game😁
 

Huno

Member
Arable Farmer
Am i reading this right? A farmer saying reduce rates! With respect that is not acceptable, we do not all have grade one or two land. If we are doing a public good we need proper payment.
The rates for all SFI options were not high enough last week!!!!! Hence so few applicants!!!!
 

Huno

Member
Arable Farmer
And dont believe the propaganda you read because most of them are PAID to sell the SFI scheme.. good luck to them.. Maths and cashflow however rarely lies...
 
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Huno

Member
Arable Farmer
Today Food Production, Stewardship Schemes and SFI are all no profit scenarios.. Milk, Beef and Lamb slight profit for now..
Importing everything... very profitable for food processors.. Change will come and soon
 

willyorkshire

Member
Arable Farmer
Location
East Yorkshire
The rates for all SFI options were not high enough last week!!!!! Hence so few applicants!!!!
It's not enough for very productive land to take that land out of production. You could argue it's land that doesn't need help. But then helping less productive land with subsidy competes with the highly productive land. One size fits all never has worked well and never will. BUT SFI will help low production land, no doubt. Why risk growing high input costs if the net margin is same or better growing flowers? Oh, but they've now limiting those options to 25%... Hmm. This moveable feast is no good to anyone, inspires no confidence at all.
 
They decide what it is regardless to what I have done with it though
You can get it changed. This is now improved PP

IMG_0127.jpeg
 

e3120

Member
Mixed Farmer
Location
Northumberland
800 quid a hectare minus costs and rent equals a minus figure🤣🤣
But 2 lots of 800 in one year isn't so bad. This will surely be a pertinent topic in inspectors' guidance notes, quite rightly IMO, unless prominent TFF lobbyists are successful.

More than 1 way to throttle the job.

  • Restrict the scale of new entrants.
  • 'Encourage' existing entrants to rethink their plans

Exactly the same has been done with RHI with 'rock solid' agreements being made less attractive with emissions/sustainability/maintenance bolt-ons. Plenty have said sod it.
 

Huno

Member
Arable Farmer
But 2 lots of 800 in one year isn't so bad. This will surely be a pertinent topic in inspectors' guidance notes, quite rightly IMO, unless prominent TFF lobbyists are successful.

More than 1 way to throttle the job.

  • Restrict the scale of new entrants.
  • 'Encourage' existing entrants to rethink their plans

Exactly the same has been done with RHI with 'rock solid' agreements being made less attractive with emissions/sustainability/maintenance bolt-ons. Plenty have said sod it.
2 lots of 800 in 1 year will be classed as "double funding" just wait for the 2024 SFI small print🤣
 

SFI - What % were you taking out of production?

  • 0 %

    Votes: 105 40.5%
  • Up to 25%

    Votes: 94 36.3%
  • 25-50%

    Votes: 39 15.1%
  • 50-75%

    Votes: 5 1.9%
  • 75-100%

    Votes: 3 1.2%
  • 100% I’ve had enough of farming!

    Votes: 13 5.0%

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