Commons Sense

House of Commons · Ministerial Statement

Sustainable Farming Incentive

15 October 2026 · 31 other contributors

Opened by Stephen Morgan Lab Portsmouth South

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

At a glance

Stephen Morgan raised concerns about sustainable farming incentive in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • Minister Stephen Morgan announced improvements to the Sustainable Farming Incentive scheme in summer 2024.
  • The Government limited each farm business to one SFI26 agreement with a maximum of 100,000 per year.
  • The second application window for SFI opened on 22 September 2026.

How the debate unfolded

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

Government Statement

In summer 2024, Stephen Morgan announced improvements to the Sustainable Farming Incentive (SFI) scheme to enhance its focus, transparency, and fairness. The Government introduced a rule limiting each farm business to one SFI26 agreement with a maximum of £100,000 per year, and streamlined the number of SFI actions to simplify the process. The first application window was open only to small farms and those without existing agreements, while the second window, which opened on 22 September 2026, was open to all farmers and land managers with at least three hectares of agricultural land. Despite exceptional demand, the Government allocated an additional £20 million, bringing the total allocation to £310 million, and funded nearly 19,000 new agreements. The Minister highlighted the Government's commitment to a farming sector that is productive, profitable, and resilient, and confirmed plans for an SFI scheme in 2027 with a first-come, first-served application process to be scrapped. The Government are committed to offering an SFI scheme in 2027 and are working with farming organisations to refine the scheme.

Other contributors (31)
  • Question

    Robbie Moore criticised the SFI scheme, stating that it has been mishandled under the Labour Government and resulted in a significant reduction in funding from £520 million to £310 million. He questioned the Minister about the missing £210 million, the timeline for SFI27 applications, and the support for farmers with expiring agreements, urging for a forward plan and financial support.

    Minister reply

    Stephen Morgan acknowledged that the scheme was not perfect but emphasised the improvements made by the current Government. He highlighted the changes made to address the previous issues and the significant funding allocated for the farming sector. He challenged the Conservatives for not fixing the scheme during their tenure and called for contrition from them.

  • Question

    Daniel Zeichner acknowledged the challenges faced in developing IT systems for the SFI scheme and praised the hard work of his colleagues at the Rural Payments Agency. He called for contrition from the Conservatives, given the difficulties in administering the scheme.

    Minister reply

    Stephen Morgan thanked Daniel Zeichner for his contribution and recognised the hard work of the RPA. He highlighted the hypocrisy of the Conservatives regarding the SFI scheme and reiterated the improvements made by the current Government, including the end of the first-come, first-served approach.

  • Question

    Sarah Dyke highlighted the challenges faced by farmers due to the scheme's closure and the two-tier system that was implemented. She called for an additional £1 billion to support farmers and protect the environment, and urged the Minister to press the Chancellor to fund SFI properly.

    Minister reply

    Stephen Morgan thanked Sarah Dyke for her constructive engagement and acknowledged the challenges faced by farmers. He highlighted the significant funding provided for the farming budget this year and committed to considering the points raised by Dyke as they design the scheme for the next year.

  • Question

    Is it not time we simply admitted that the SFI experiment has failed? The last Government could not get the money out the door, and we now have an IT system that is so bad that we may as well not have a door. Farmers do not believe that the SFI is fair. They do not believe that it is getting to those who need support, or that it is delivering the public goods intended. Perhaps we should start again and reconsider a universal baseline, with best practice conditions.

    Minister reply

    My hon. Friend has yet to write to me on any issues that his farmers have raised about SFI26, and I encourage him to do so. I meant it when I said in my opening remarks that I am really keen to work in partnership with others to design a scheme that works for all farmers next year. I look forward to his proactive engagement with me in order to get the scheme right next year.

  • Alistair Carmichael Lib Dem Orkney and Shetland

    Question

    How many applications did the Department expect to receive when it opened the window? The farming software platform Soil Benchmark publicly estimated that there would be about 40,000 applications, and it thought that there would be a budget for about 15,000 successful ones. In the event, it was about 12,000. If Soil Benchmark could do that calculation, why did the Department not do so? Or did the Department do that calculation and then open the scheme in the knowledge that approximately two thirds to three quarters of applicants would be disappointed at the end of it?

    Minister reply

    I thank the Chair of the Environment, Food and Rural Affairs Committee for his measured intervention, and look forward to being before his Committee later this month. We obviously anticipated that there would be high demand for the scheme this year, which is why we had two windows and increased funding for the overall pot to £310 million—I have already mentioned the window 2 process. DEFRA expected strong initial demand, and made it clear before the window opened that its duration would depend on the rate of applications. Ministers obviously allocated the £50 million, and then the additional £20 million. We are really keen to learn from all in the sector what we can do to improve the scheme going forward, and I look forward to the right hon. Gentleman’s contributions in due course.

  • Question

    Avid readers of The Sun may have already seen some of my comments on the situation with SFI. I could ask many questions, but I will limit myself to just one. Many would-be applicants once again experienced technical issues, and those who phoned the Rural Payments Agency reported hours’ long wait times—I hope the Minister’s team are looking into that. The Department has said that there will be a further, very limited window for those who had technical issues, but could the Minister tell the House whether that includes only those who were able to speak to someone and report such issues, or whether it will also include those who, frankly, gave up when they knew that they would have to wait hours to speak to an RPA agent?

    Minister reply

    I thank my hon. Friend for the way he has engaged with me on thinking through the design for the scheme next year. He is right to say that some farmers reported technical issues with the application service, which prevented them from applying. It is normal to receive such reports after the application windows close. Some of the applications will be valid, and the RPA is currently working through them as we speak. If my hon. Friend has any particular examples that he wants to share with me, I can certainly take them away and raise questions with the relevant officials in my Department.

  • Roger Gale Con North Thanet

    Question

    Kent was once rightly regarded as the garden of England, but faced with intolerable pressures on their finances, many of the small farmers in Kent—having looked to the sustainability scheme for help and having been denied it—are now having to sell their land for housing and other development, further denying us national sustainability in food. Can the Minister tell the House how many farmers in Kent are benefiting from the scheme?

    Minister reply

    We are publishing the figures for applications across counties and constituencies, so I can certainly make that information available to the right hon. Member. More broadly, he makes a point about the demands that farmers are facing, and our farming road map, published earlier this year, is a 25-year plan to commit to a more profitable, productive sector and to building resilience in the farming community. I am very keen to work in partnership with the farmers in his constituency and area to make sure that is delivered.

  • Question

    When the shadow Minister next gets up at the Dispatch Box, I hope he will withdraw the inaccuracy that the scheme was, for the first time ever, built on a first-come, first-served basis. That is simply not the case, and the Conservatives know it. Does the Minister agree that farmers deserve better than the rewriting of history from the party that left a half-built, half-baked transition, and can he expand a little more on his plans to reform the RPA in time for SFI27?

    Minister reply

    My hon. Friend is a real champion for farmers in his constituency, as is very evident from the contributions that he makes in this House, which are so informed. He is absolutely right to call out the Opposition for the action or inaction that they took when they had the opportunity to work to improve the lives of farmers across our country. I am very happy to meet him on the specific points he raises to make sure I have his insight as we design the scheme for next year.

  • John Glen Con Salisbury

    Question

    Most farmers invest in a plan over several years, and over 12,000 who were in receipt of previous grants have been unable to fulfil what they expected this year. What thoughts does the Minister have on those individuals, given that the significant sums of money already invested, through the taxpayer, will essentially go to waste? On the RPA, what will he publish about the barriers? Most farmers get very frustrated that they cannot work out what they have done wrong.

    Minister reply

    I thank the right hon. Member for the way he is engaging on these issues. Obviously, our annual report sets out how we spend the farming budget, and if he has not yet had a chance to see that, I encourage him to do so. I will certainly take back to the Department the specific points about the RPA and the frustrations of farmers in his constituency, and we will look into the issues he has raised.

  • Question

    The Government were absolutely right to redesign the SFI to prioritise smaller farming businesses so that taxpayer money supports more farms. However, in Cumbria, 54% of the land is less favourable, which means that my farmers have to hold more land to get a viable farm, pushing them into window 2. Will the Minister, when he looks at the next SFI, please ensure that it recognises that acreage alone should not determine which window farmers apply in?

    Minister reply

    It was a real pleasure to meet my hon. Friend recently to discuss some of the particular challenges her constituency is facing, and wider issues including bluetongue. I will certainly bear in mind the constructive points that she has raised as we design the scheme for next year.

  • Question

    My constituent Anthony Henman farms Pegtop farm at Woodeaton. He has SFI agreements that expire in March next year. When I spoke to him this morning, he told me that these are 'vital to us. We can’t survive without them.' Does the Minister understand the huge pressure facing our farmers, not least in the light of the extraordinary global price of fertilisers, and that many of them are simply on the edge? What assurances can I give Anthony and other farmers in my constituency that SFI27 will be announced early, and will be adequately funded and properly managed?

    Minister reply

    I absolutely recognise the difficult year that farmers have faced across the country, and indeed in the hon. Member’s own constituency. That is why I am keen to open SFI27 as early as possible, and I gave that assurance from the Dispatch Box earlier. It is worth noting that this year, through all the schemes, £2.3 billion is going into the farming budget, as is £11.8 billion over the lifetime of this Parliament, but I am certainly keen to hear any further thoughts as we design the scheme for next year.

  • Question

    The fundamental problem is that for years our country has not allocated enough of our national resources to growing food in a way that boosts biodiversity. We now have a nature crisis that is increasingly a threat to our national security. We need every farm that can to do more on nature-friendly farming. Can the Minister reassure me that his Department is talking to the Treasury about securing greater investment in the SFI going forward?

    Minister reply

    My hon. Friend will know that we were responding to our settlement from the Treasury. There is always more we can do. That is why we published our farming road map earlier this year, which sets out the direction of travel that we want to take when it comes to building a more resilient, productive farming sector, working in partnership with the sector to deliver nature-friendly farming.

  • Question

    On 21 September, my constituent spent the day with the Minister. It was unsurprising then that on 22 September he went to market. However, he got home at 3.50 pm to complete his agreement, which had already been worked on, to find that he was two minutes too late and £50,000 down as a result. He said: 'I am jumping mad! This is a”—insert expletive here—“show! How can anyone be expected to manage a small business and compete in a fastest-to-the-button lottery like this?' How would the Minister have felt if he had had to apply for his parliamentary seat in that way?

    Minister reply

    I thank the hon. Member for her question and for encouraging me to visit Dartmoor recently. I know she was not able to join me, but it was a very insightful visit. I absolutely recognise the human difficulties for farmers who have not been able to apply for the scheme this year. If she has particular examples—as she has just described—that she wants to feed into me, it is really important that I hear them, so I thank her again. There is wider support available for farmers that we can signpost people to via the blog post on the DEFRA website.

  • Question

    Upland farmers in Northumberland and elsewhere are frustrated that the current scheme does not adequately support them. Will the Minister work with Northumberland MPs and the NFU uplands group to ensure a redesigned scheme properly supports upland farms?

    Minister reply

    The Minister thanked the MP for his engagement and expressed his interest in learning from the scheme and working with him and colleagues to ensure a better scheme for upland farms.

  • Question

    The scheme's application window was too short, opening at 10 am and closing at 3.48 pm, causing distress to farmers. Will the Minister apologise for this?

    Minister reply

    The Minister acknowledged the difficulties faced by farmers but did not directly apologise, stating that the scheme was inherited from a previous Administration and that he is keen to learn from its shortcomings.

  • Question

    Yeovil farmers were shut out from the funding despite being prepared, including a farmer who won an award for environmentally-friendly land management. What are the Government's plans to encourage sustainable farming in Yeovil?

    Minister reply

    The Minister mentioned the farming road map and highlighted the £2.3 billion budget for the current year and £11.8 billion over the Parliament's term, encouraging the MP to look at other available schemes on the DEFRA blog.

  • Question

    The scheme was massively oversubscribed, and the £210 million difference between expiring agreements and the SFI budget is a concern. Will the Minister address this issue and apologise?

    Minister reply

    The Minister did not apologise but stated that the previous Government designed the scheme and invited constructive engagement on how to improve it.

  • Robert Jenrick Con Newark

    Question

    The scheme was a complete shambles, known to be a disaster, and massively oversubscribed. Will the Minister apologise and ensure this does not happen again next year?

    Minister reply

    The Minister did not apologise but invited the MP to engage constructively and provide examples for improvement.

  • Question

    Small farmers who were unable to apply due to the short application window need an apology and assurances that the scheme will be better designed next year.

    Minister reply

    The Minister expressed regret and acknowledged the difficulties but stated that the scheme was inherited and lessons need to be learned.

  • Question

    Farmers who have lost out on the scheme and are unsure how they will survive need an apology and assurances that the scheme will be better next year.

    Minister reply

    The Minister acknowledged the need to learn from this year's scheme and encouraged the MP to share specific examples from her constituency.

  • Question

    The Minister's attitude towards farmers is dismissive, and he has had two and a half years to fix the problem. Does he understand the frustration and anger of farmers?

    Minister reply

    The Minister stated that he engages with farmers regularly and is committed to improving the scheme for the future.

  • Question

    Farmers in North Herefordshire are distressed and depressed due to the scheme's failure. The Minister needs to recognise their need for support, sustainability, and certainty.

    Minister reply

    The Minister acknowledged the difficulties and expressed regret if people applied and were unsuccessful, stating that he is working to put it right.

  • Andrew Murrison Con South West Wiltshire

    Question

    Farms in Wiltshire are being pushed over the edge due to the scheme's failure. What assessment has the Minister made of the impact on farms and the number of farms likely to be sold up?

    Minister reply

    The Minister highlighted significant funding for the farming budget and encouraged the MP to share specific examples of farmers affected by the scheme.

  • Question

    Food security is national security. How does the Minister take this principle forward in his work when administering schemes such as this?

    Minister reply

    The Minister acknowledged the difficulties faced by farmers and highlighted the farming road map and the Government's commitment to food security.

  • Wendy Morton Con Aldridge-Brownhills

    Question

    At a time when the Government really should be supporting the producers of our food and the guardians of our countryside, they saw fit to open the new SFI scheme offer and then close it down after just six hours. Will the Minister acknowledge that his Government got this wrong, provide a road map—a forward look for the farmers—detailing what the next scheme will be, give them more notice and assure both farmers and this House that they will have more time next time round?

    Minister reply

    I thank the right hon. Lady for her question. As I mentioned at the outset, it was her Government who introduced the “first come, first served” approach. We are absolutely keen to ensure that we make changes and improvements for future years, and if she has practical ideas about how we make that happen, I would be delighted to hear from her.

  • Tessa Munt Lib Dem Wells

    Question

    I wanted to point out to the Minister that a lot of farmers in my area have terrible difficulties with buffering broadband, as internet access is poor. I had actually thought that those who had agents were the lucky ones, but I was informed quite neatly after I had said something about this that most agents actually only managed to get in eight, nine or 10 applications in the very short window that was available, so that was not the case. The Minister has mentioned that he is going to be running workshops with farmers, but has he actually asked the Rural Payments Agency to do a high-speed review, as he does not have very much time before 2027, so that the barriers to applicants, particularly those who had expiring agreements and those who do use agents—

    Minister reply

    I thank the hon. Member for her question, and I can assure her that I have met the RPA on the lessons learned from the scheme and what worked well this year, and we will analyse what the applications tell us.

  • Question

    Farmers across Somerset have been left without certainty and support by this latest DEFRA snafu, and they will not be consoled by the thought of a workshop. How does the Minister envisage farmers being able to plan financially for the year ahead if they do not know when the next round is or how the funds will be allocated?

    Minister reply

    We will publish more information about future rounds in due course. The hon. Gentleman will have heard my message that we are keen to open SFI27 as early as possible into the new year. There are lots of ways that farmers can feed in their thoughts and views on the scheme for the future, and there are other funding schemes available for farmers, so I encourage him to check the DEFRA blog for that information.

  • Question

    A dozen farmers I was with out on the levels last week from North Curry, Stoke St Gregory and the surrounding areas were visibly shaken by the economic impacts that they are facing and the price of diesel. This latest debacle has been disastrous for farmers. They are considering ripping out the trees and margins that were planted under previous funding initiatives because they simply will not be able to continue without funding being provided under this initiative, which seems to have only gone to around 10% to 12% of farms in the country. Can the Minister tell me what he would have me say to those farmers about the loss of the wildlife that they have already put in?

    Minister reply

    I am very happy to meet the hon. Gentleman to discuss those issues.

  • Question

    The NFU and farmers were a klaxon on the impending car crash that unravelled—those are the words of a local farmer. A debacle—those are the words of a Labour MP. Having had no decency to warn farmers that it was coming, today was an opportunity for humility rather than gaslighting them that only some of the technical complaints were legitimate. Will the Minister at least now publish a transparent breakdown of how the farming budget is being spent in its entirety? That is the least that farmers deserve after this debacle.

    Minister reply

    Our annual report obviously sets out how the farming budget is spent. When we announce future rounds of schemes, we set out the overall budget available. I mentioned earlier the amount available for SFI this year. We will continue to be as transparent as we can beyond the figures available for farmers.

  • Jim Shannon DUP Strangford

    Question

    Thank you, Madam Deputy Speaker. While the sustainable farming incentive applies specifically to England, the allocation underpinning it directly impacts devolved regions. Given that the Ulster Farmers Union—I declare an interest as a member —has expressed severe concern over the long-term stability of the multi-year agricultural budget and the transition away from direct support, what discussions has the Minister had with the Department of Agriculture, Environment and Rural Affairs Minister and the Northern Ireland Assembly to ensure that the unique family farm structure in Northern Ireland is strengthened and protected within the Barnett consequentials and the UK-wide funding envelope in order to help towards soaring costs?

    Minister reply

    I always appreciate a question from the hon. Gentleman. We will certainly look into the issues that he describes. Farming is a devolved matter, but he knows my commitment to working in partnership with the Northern Ireland Government. I have already met with my counterparts in Northern Ireland.

Shadow Comment

Robbie Moore

Robbie Moore criticised the mishandling of the SFI scheme under the Labour Government, highlighting the lack of warning and preparation despite having 18 months of inaction following the closure of the scheme. He questioned the Minister about the discrepancy between the expiring agreements valued at more than £520 million and the reduced budget of £310 million, demanding clarity and certainty for the next steps. Moore also inquired about the timeline for SFI27 applications and the support for farmers with expiring agreements, urging the Minister to publish a forward plan and provide financial support to minimise gaps in cash flow.

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