SFI shortfall on budget ‘could be the final straw’
NFU leaders have warned of a growing divide between Sustainable Farming Incentive (SFI) “haves” and “have nots” and say missing out on the latest funding window could represent “the final straw” for some producers.
Joe Payne, Vice chair, NFU West Riding, was speaking as more than 100 Conservative MPs demanded urgent action over the handling of SFI26 after its £253 million Window 2 budget was exhausted in less than six hours.
The MPs have written to Defra Secretary Dame Angela Eagle criticising calling for changes to SFI before the next scheme opens.
SFI26 Window 2 opened on September 22 with an initial £233 million budget and closed at 3.48pm after around 12,200 applications exhausted the available funding, according to Defra.
Mr Payne, who farms near Penistone, said: “For many Yorkshire farmers and growers already lying awake at night, worrying about cashflow after the hottest summer on record or about livestock threatened by bluetongue, this could be the final straw. We needed certainty, consistency and cash. Instead, many county farmers have been left confused and facing another financial blow.”
The NFU says it had repeatedly made clear to Defra that the 22,000 farmers and growers with expiring agreements would want to continue the work they had started, leaving farmers across the county and further afield having to wait until 2027 at the earliest for the next round before applying again.
Addressing Labour MPs, ministers, party members and farmers at the NFU’s Great British Breakfast during Labour Party Conference, NFU President Tom Bradshaw called for urgent clarity for affected farmers. He also urged the government to open the next iteration of SFI in early 2027 and take action in the Budget to strengthen farm business resilience and safeguard the nation’s food security.
Mr Payne added: “The current cashflow pressures facing Yorkshire farmers and growers only exacerbates that demand as we look for certainty and clarity for the year ahead. But those that missed out have been left frustrated, angry and with even greater concerns and we know the uncertainty and financial pressure this creates for those farming businesses.
“Together we will press for the SFI27 application window to open to offer agreements in early 2027, with a budget that properly reflects the number and value of expiring agreements.”
He added promises about next year would provide little comfort to farmers and growers wondering whether their businesses will survive the next 12 months.
Mr Payne said: “If the government wants viable farm businesses still standing when SFI27 arrives, it must act now. It should back the Keep Britain Growing Loans, providing an interest-free injection of cash to the businesses hit hardest.
“This is a really worrying time for many Yorkshire farmers and we hope that Defra will realise as soon as possible that more funding is needed to help support farmers to deliver quality homegrown food while maintaining and enhancing the work they do to support the environment and countryside.”