Commons Sense

House of Commons · Ministerial Statement

Sustainable Farming Incentive 2025-03-12

12 March 2025 · 42 other contributors

Opened by The Minister for Food Security and Rural Affairs Daniel Zeichner Lab Labour

ClimateAgriculture & Rural Affairs

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

The Minister for Food Security and Rural Affairs Daniel Zeichner raised concerns about sustainable farming incentive 2025-03-12 in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • The UK government has secured 5 billion over two years for sustainable farming.
  • This funding includes 1.8 billion for customers already in agreements.
  • A further 150 million is allocated for farmers in the SFI pilot.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Government Statement

The Minister for Food Security and Rural Affairs Daniel Zeichner

Today I am updating the House on the sustainable farming incentive. We are in a global transition period for British farming, facing challenges like leaving the EU and climate change. Our goal is to support farm businesses while protecting the environment. We have secured £5 billion over two years, which includes £1.8 billion for customers already in agreements, £1 billion for farmers now in SFI agreements, and a further £150 million for farmers in the SFI pilot. We have invested this money to bring thousands of farmers into environmental land management schemes, making a record number of capital items available for the coming year. More than half of all farmers are now in schemes, with 37,000 live SFI agreements and 50,000 farmers in ELM agreements. However, due to high uptake, the scheme is now fully subscribed, necessitating strategic budgetary controls. We will continue to support farms through existing SFI agreements and a revamped offer following the spending review. This decision ensures long-term stability for farmers.

Other contributors (42)
  • Jayne Kirkham Lab/Co-op Truro and Falmouth

    Question

    What is the impact of halting the sustainable farming incentive scheme on farmers who are relying on it?

    Minister reply

    The minister explained that while many farmers are in schemes, others will face a transition period without immediate support. He emphasised the need for strategic budgetary controls to manage oversubscribed schemes and reiterated his commitment to support farms through existing agreements.

  • Henry Tufnell Con Mid and South Pembrokeshire

    Question

    How will upland farmers, who rely heavily on the SFI scheme, be supported during this transition?

    Minister reply

    The minister committed to working closely with the farming sector to design an improved scheme that better targets priorities for food, farming and nature. He assured that existing SFI agreements would continue until their completion.

  • Daniel Zeichner Lab

    Question

    I thank my hon. Friend for her question. She makes absolutely the right point. We should be reassuring people out there that farmers who are in schemes are absolutely safe and are carrying on as before, but the basic point is that when a scheme is full, it is full.

  • Tim Farron LD Westmorland and Lonsdale

    Question

    I thank the Minister for advance sight of his statement. The closure of the SFI from 6 o’clock last night came without warning or consultation, and it constitutes the breaking of the Government’s word to farmers...

    Minister reply

    Again, I am disappointed in the hon. Gentleman’s comments... He did not welcome the uplift in higher level stewardship payments which will benefit upland farmers.

  • Alex Sobel Lab/Co-op Leeds Central and Headingley

    Question

    The fruit and vegetable aid scheme is an important lifeline for our producers. Given that the scheme finishes on 31 December 2025, what plans do we have to support further collaboration between fruit and vegetable producers in 2026 and beyond?

    Minister reply

    My hon. Friend asks an important question... This is an EU legacy scheme, but we are absolutely committed to supporting the horticultural sector.

  • Edward Leigh Con Gainsborough

    Question

    Will the Minister leave for a moment the hallowed cloisters of Cambridge and accept my invitation to take a rural ride through Lincolnshire, the breadbasket of England...?

    Minister reply

    I am grateful to the right hon. Gentleman for his question... I am always happy to visit Lincolnshire.

  • Alistair Carmichael LD Orkney and Shetland

    Question

    I note the Minister’s complaint that he inherited an uncapped budget... In other words, the Government’s aim is to lose 7% to 8% of our farms. What will that figure be after today’s announcements?

    Minister reply

    I am always grateful to receive questions from the right hon. Gentleman... That is why the Secretary of State and I are so determined to address those problems around farm viability.

  • Sam Rushworth Lab Bishop Auckland

    Question

    I would ask the Minister—if I could hear myself think—to ensure that every penny in SFI arrangements will be paid to farmers, and also that those who have already applied and who are eligible for the scheme will have their applications taken forward.

    Minister reply

    I thank my hon. Friend... I can absolutely give him that commitment.

  • Wendy Morton Con Aldridge-Brownhills

    Question

    How does the Minister expect those who have farming businesses to plan for the future when he sneaks an announcement out like his Department did last night, despite a message on his website saying that they would give six weeks’ notice of any closure?

    Minister reply

    The only thing I have anything against is the previous Government... As a consequence, it would not have been possible to give notice.

  • Alex Mayer Lab Dunstable and Leighton Buzzard

    Question

    As the Minister has just alluded to, the scheme is called SFI ’24. Might there be a clue in the title that makes this less surprising than people are saying, given that it is now 2025?

    Minister reply

    I am grateful to my hon. Friend... The way the scheme was set up by the previous Government meant that it was first come, first served.

  • Mike Wood Con Kingswinford and South Staffordshire

    Question

    The overnight withdrawal of the funding is yet another blow to many of my farmers in Kingswinford and South Staffordshire. The Minister still has not answered the question as to why he has broken his word, which was clearly set out on the Government website, to give at least six weeks’ notice...

    Minister reply

    It first came to my attention five years ago during the passage of the Agriculture Act 2020...

  • Cat Smith Lab Lancaster and Wyre

    Question

    I invite the Minister to join me, because I am going to accept the invitation from my constituent Cath to visit her farm. Her SFI application was ready to go as she was coming out of the countryside stewardship agreement...

    Minister reply

    As I have said to many hon. Members, I am always happy to try and meet farmers whenever I can...

  • Andrew George LD St Ives

    Question

    What assurance can the Minister give farmers in my constituency? A site of special scientific interest has recently been designated... How will my farmers adjust to the new regime, and what assurance can the Minister give them that the funding will be in place to support their actions in the SSSI?

  • Markus Campbell-Savours Lab Penrith and Solway

    Question

    Can the Minister confirm more about the timetable for SFI ’25 to provide some reassurance to my farmers in Penrith and Solway that we will deliver? Will he also explain a little more about how we can ensure that more of my hill farmers get into the SFI scheme, which the last Government failed to deliver on?

    Minister reply

    We will work with farmers over the summer to redesign schemes and address fair allocation issues. Once discussions are complete, we will announce exact timings for future funding opportunities.

  • Charlie Dewhirst Con Bridlington and The Wolds

    Question

    How is any farming business expected to invest in the long term given recent changes?

    Minister reply

    The budget was completed, leading to a shift from previous unmanaged spending. We are working towards capped and controlled schemes that will ensure better financial management.

  • Andrew Pakes Lab Peterborough

    Question

    Will the Minister outline details to ensure future schemes get money out to farmers and avoid waste seen under the previous Government?

    Minister reply

    We are setting out a clear path for future schemes with a £5 billion budget over two years, ensuring that money reaches farmers effectively.

  • Sarah Dyke LD Glastonbury and Somerton

    Question

    What communications will go to affected farming businesses and what support will DEFRA give?

    Minister reply

    The Rural Payments Agency has written to farmers today, setting out the situation and providing reassurance.

  • Perran Moon Lab Camborne and Redruth

    Question

    Is the Minister surprised that the Conservative party is now crying crocodile tears when it failed to deliver on SFI?

    Minister reply

    We inherited a budget ceiling issue from previous management, which we are addressing through better financial control.

  • Simon Hoare Con North Dorset

    Question

    When did the Minister know about hitting the budget ceiling? What discussions has he had with the Treasury?

    Minister reply

    We have known about it for five years, and we are managing the transition from basic payments to environmental land management schemes.

  • Terry Jermy Lab South West Norfolk

    Question

    Is the low uptake of the scheme evidence that the Conservative party failed farmers over many years?

    Minister reply

    Many farmers are now benefiting from these schemes, and we are building on their environmental benefits.

  • Ellie Chowns Green North Herefordshire

    Question

    How does the Minister expect UK to make the transition to nature-friendly farming if this is how he treats farmers?

    Minister reply

    We are celebrating the fact that many farmers are now farming in an environmentally sensitive way, and we encourage continued participation.

  • Chris Hinchliff Lab North East Hertfordshire

    Question

    Will the revamped SFI allow farmers to plan seasons ahead?

    Minister reply

    We will ensure a better allocation process in future, building on what we have inherited.

  • Adam Dance LD Yeovil

    Question

    What plans do the Government have to restore Yeovil farmers’ confidence in this Government?

    Minister reply

    We are spending a record £5 billion on farming over the next two years, aiming to support our farmers effectively.

  • Greg Smith Con Mid Buckinghamshire

    Question

    How does the Minister correlate his statement with giving 30 minutes’ notice to the NFU?

    Minister reply

    This process has been ongoing for five years, and we have managed a transition from basic payments to environmental land management schemes.

  • Carla Lockhart DUP Upper Bann

    Question

    How can the Minister justify sending over £500 million to farms abroad while stripping support for home-grown farmers?

    Minister reply

    This scheme relates to England, and we are spending a record £5 billion on farming over the next two years.

  • Martin Vickers Con Brigg and Immingham

    Question

    When meeting with Lincolnshire farmers, will he explain exactly what his Government is doing to increase profitability?

    Minister reply

    I would be very happy to speak to farmers about supply chain fairness and other important work.

  • Helen Morgan LD North Shropshire

    Question

    What will the Minister do to enable farmers to plan, and what will the replacement scheme look like?

    Minister reply

    We are working on redesigning schemes over the summer to ensure fair allocation of resources.

  • Luke Evans Con Hinckley and Bosworth

    Question

    The Minister says the scheme is full. When did he know that? Why didn't he inform farmers earlier?

    Minister reply

    We made the decision yesterday because we reached the point where the budget was exhausted.

  • Daniel Zeichner

    Question

    I think there is still a misunderstanding about how these schemes work. When the scheme reaches its full capacity, it has to close.

    Minister reply

    We made the decision yesterday because we reached that point.

  • Roz Savage LD South Cotswolds

    Question

    Can the Minister assure farmers they will receive support to adapt to changes and access necessary technology?

    Minister reply

    The majority of farmers are already working with us on environmentally friendly farming. We invite people to apply when new schemes come along.

  • Andrew Snowden Con Fylde

    Question

    Will the Minister address farmers directly and face their response?

    Minister reply

    I invite him to talk to those engaged in nature-friendly farming who benefit from these schemes. We want to move away from the common agricultural policy.

  • Vikki Slade LD Mid Dorset and North Poole

    Question

    When was the decision to close SFI made? What will happen to pending applications?

    Minister reply

    The scheme has been closed due to budget exhaustion. Another set of grants will be available at a future point.

  • Julian Lewis Con New Forest East

    Question

    On which day were Ministers first informed that the budget had been exhausted?

    Minister reply

    We made the decision yesterday because we reached that point.

  • Caroline Voaden LD South Devon

    Question

    What will replace SFI, when will consultation take place and what is fairer supply chain support?

    Minister reply

    We will review the scheme through the spending review over the next few months. We have secured a £5 billion budget for stability.

  • Geoffrey Clifton-Brown Con North Cotswolds

    Question

    What is replacing SFI, when will consultation take place and what is the timeline?

    Minister reply

    Through the spending review over the next few months, we will review how to improve the scheme. I will report back later in the summer.

  • Ben Maguire LD North Cornwall

    Question

    How does the Minister plan to incentivise young people into farming given the challenges they face?

    Minister reply

    We need generational change in farming. The £5 billion budget secured was a good first step for stability.

  • Jess Brown-Fuller LD Chichester

    Question

    What communication and support will be provided to family farms that missed out on this round of SFI funding?

    Minister reply

    It was clear from a long time that the transition was coming. The majority are already in schemes; early application is advised.

  • Steff Aquarone LD North Norfolk

    Question

    Can the Minister assure farmers that DEFRA will learn lessons from poor communication and lack of clarity?

    Minister reply

    This is not about communication. The scheme was designed to close when reaching budget limits.

  • Danny Chambers LD Winchester

    Question

    Has an impact assessment been undertaken on changes to farming budgets and cash flow, such as the removal of SFI?

    Minister reply

    The £5 billion budget is there; this discussion is about who gets it.

  • John Milne LD Horsham

    Question

    Why was no need felt to consult farming stakeholders in advance of the announcement?

    Minister reply

    Starting a consultation on a first come, first served scheme would lead everyone to apply that day and force us to shut it.

  • Jim Shannon DUP Strangford

    Question

    Will funding for Northern Ireland farmers be reduced or falter as a result of today’s announcement?

    Minister reply

    This announcement will make no difference to the funding arrangements for Northern Ireland.

Shadow Comment

Victoria Atkins

The shadow Secretary accused Labour of betraying farmers by halting the sustainable farming incentive scheme without warning, despite its popularity among farmers. She cited numerous criticisms including the lack of consultation, legal problems with environmental targets, and inconsistencies in previous statements about food security. The shadow secretary highlighted that many farmers are now left without support during a transition period. She pledged her commitment to help farmers and sort out this 'shocking mess' with proposals such as axing the family farm tax.

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