There is lots happening in agriculture, from removal of Direct Payments (BPS) to the introduction of new schemes (SFI) and grants to promote sustainability and diversification. This is alongside wider changes such as the government’s reform of the National Planning Policy Framework which will open the door to more renewable energy projects and more housing, presenting opportunities for farmers and land managers.
The reduction in and subsequent total removal of historic subsidies is a harsh reality that needs to be mitigated against. Do you have a handle on what financial position your business might be in come 2028 when Direct Payments have gone entirely? Will your business survive if it continues to function as it does currently? Do you need to make changes? Perhaps you want to embrace some of the opportunities? Or prepare to pass your business to the next generation?
It is really important to ask these types of questions now so that you and your business can navigate what is to come as smoothly as possibly, taking advantage of exciting opportunities as they become available along the way, like:
Sustainable Farming Incentive Expanded Offer 2024 (SFI 24)
SFI 24 is now available for all businesses. SFI 2023 has closed to new applicants.
The fundamentals:
- Generally a 3-year agreement – some actions are for 5 years.
- Pick and mix from a list of 102 actions.
- Quarterly payments.
- Additional annual SFI management payment (up to £40/ha)
- Initial application process is invite only via an expression of interest.
- Do not have to be a BPS recipient to apply.
- Agreements start on the 1st of the month following acceptance of agreement offer.
Pointers:
- You can have more than one SFI scheme, e.g. two or more SFI 24 schemes or an SFI 24 on top of your SFI 23 if the actions are compatible.
- Every farming business should be considering whether an(other) SFI scheme could work for them.
- Start by considering whether you can get paid for what you are already doing.
- If the current scheme offering works for your business and aspirations – lock in sooner rather than later and before the autumn budget if possible.
- Ministers have so far announced that they are not going to “overturn the apple cart” and that they will be carrying on with rolling out environmental land management schemes. We therefore expect the SFI to continue but it is likely that there will be some changes announced as a result of the upcoming October budget.
Capital Grants 2024
These grants are standalone capital grants that can be used to support and complement SFI, existing Countryside Stewardship (CS) Mid-Tier, Higher-Tier and Wildlife Offers, and Higher Level Stewardship. This supersedes all previous CS and SFI capital grants.
The fundamentals:
- Up to 3 years to complete the works
- Pick and mix from a list of fixed payment items.
- Boundary improvements.
- Water quality improvements.
- Livestock improvements.
- Air quality improvements.
- Complete and pay for capital items, then claim grant back.
Pointers:
- Multiple Capital Grants can be open at any one time, with conditions.
- For some items you may need approval from a Catchment Sensitive Farming Adviser (CSFA).
- Currently there is no limit on application value, however we anticipate that this will change.
- It is particularly important to make applications before the autumn budget.
- This is a great opportunity to invest in the infrastructure and environment of the farm: do not miss out.
Delinked Payments
BPS payments are now delinked. You do not need to make an application to receive your payments in 2024, 2025, 2026 and the last year 2027. The RPA will automatically calculate your delinked payment amount based on your former BPS reference amount.
For 2024, half of your delinked payment will have been made in August and half in September (unless there are any issues).
Act Now, for the Future
For advice on schemes/grants, or indeed any other matter, please do contact us on 01746 714089. We may even be able to give you this advice for free!*
Thomas Craddock (thomas@theruralbusiness.co.uk) at DJM Consulting is the lead for schemes/grants, supported by colleagues Laura Edwards (laura@theruralbusiness.co.uk) and Vida Thorpe (vida@theruralbusiness.co.uk).
*DJM Consulting are one of the providers of free strategic business advice under Defra’s Future Farming Resilience Fund. This fund is to help farmers and land managers navigate the changes in the agricultural industry and reduction in subsidies. It is available to former BPS claimants until February 2025. If you would like to have a discussion and devise an tailored action plan, please register with us via www.theruralbusiness.co.uk/register-for-free-advice.php, 01746 714089, djmc@theruralbusiness.co.uk
Useful links:
- DJM Consulting theruralbusiness.co.uk
- SFI 24 Scheme Guidance published on:
