The Sudden Closure of SFI: What Now for Farmers?

The abrupt closure of the Sustainable Farming Incentive (SFI) on Tuesday evening was a real shock for farmers across England, leaving many frustrated and uncertain about their next steps.

With no prior warning, Defra ceased accepting SFI applications, despite stating clearly on the website application (above) that “If we need to close applications, we will give you 6 weeks’ notice. We will publicise this information on GOV.UK and email you.”

Concerningly, the above statement was quietly removed from the website on Wednesday morning, further eroding any remaining trust in the government’s handling of farm policy.

Politicians need to understand that nature doesn’t conform to tidy, five-year political cycles

The Impact on Farmers

We know of many farmers—and one or two clients—who were in the final stages of their SFI application process, only to find themselves locked out overnight.

Significant time and effort have gone into these applications—from both farmers and consultants—and the sudden change of policy has created real challenges for those who had factored this funding into their business plans.

The government has since confirmed that existing agreements will be honoured, providing some certainty for those already enrolled. According to Defra’s latest update, “Every penny in all existing SFI agreements will be paid to farmers, and outstanding eligible applications that have been submitted will be processed.”

Defra has also stated, “We will set out details on the next phase of the SFI scheme in due course – and we will address the issues with the previous scheme that led to us having to take this decision now.”

While this offers some reassurance for the future, it is little comfort to farmers who were in the final stages of their applications, having already invested significant time and expense in the process.

Honouring Farmers in the Application Process

We believe there is a strong case for calling on the government to honour SFI applications that were well advanced at the time of the closure.

There is precedent for this. Introduced as part of the England Rural Development Programme (ERDP) in the late 1990s, the Organic Farming Scheme (OFS) provided financial support to farmers transitioning to organic methods. After its launch in 1999, demand far exceeded expectations, leading to an abrupt and unannounced suspension—much like the recent closure of the SFI. Following significant pressure from the farming community, the government eventually allowed applications already in progress to be completed while pausing new ones. We are raising this issue and encouraging those affected to contact their MPs.

What Farmers Can Do Next

While this news is disappointing, there are still steps you can take:

• Accept Your Offer: If you’ve recently received an SFI agreement offer but haven’t accepted it yet, it’s important to act quickly. Defra requires all SFI offers to be accepted within 10 working days of being issued. If you delay beyond this timeframe, your offer will be withdrawn.

• Finalise Existing Agreements: If you already have an SFI agreement in place, there is still time to refine it and ensure it works as well as possible for your farm. If you need support with this, we can help.

• Look Ahead to the Spending Review: We know it’s frustrating, but Defra has indicated that the SFI will be reviewed as part of the upcoming government spending review. While we hope a revised scheme will reopen soon, the details remain unclear and uncertain.

• Explore Alternative Funding Opportunities: Although SFI applications are currently paused, other funding avenues may still be available. Grants and incentives remain an important part of the transition towards sustainable farming, and it’s worth exploring all the options.

• Get Expert Advice: If you were affected by the SFI closure or are considering other funding routes, we can help you assess your options. Whether it’s navigating existing schemes or looking ahead to future opportunities, our team at Terrafarmer is here to provide guidance and support.

A Final Thought

The speed and manner of the SFI closure raise serious questions about how future agricultural schemes will be managed. While policy changes are always a possibility, what farmers need most is clear communication and fair treatment. The key lesson is clear: politicians need to understand that nature doesn’t conform to tidy, five-year political cycles. For those interested in a deeper read, we recommend this excellent take by Geoff Sansome on LinkedIn, former Head of Agriculture at Natural England.

In the meantime, it’s important to try to stay positive, focus on the options still available, and plan for the next stage of support. If you are feeling distressed, please talk to someone.

If you need advice on your existing SFI agreement, alternative funding opportunities, or how to position your farm for future schemes, get in touch with us at Terrafarmer. We’re here to help you make sense of the changes and find the best path forward for your farm.