The National Farmers Union (NFU) has called the Department of Food, Environment and Rural Affairs (Defra) a “failing department” after it announced it would no longer be accepting applications to the sustainable farming incentive (SFI).

The scheme was introduced post-Brexit and pays farmers to maintain practices that produce food sustainably and protect the environment.

In a statement yesterday, Defra said: “With record numbers of farm businesses in farming schemes and the sustainable farming budget successfully allocated, we will stop accepting new applications for SFI from today (March 11).”

Outstanding eligible applications that have been submitted will still be taken forward.

Chair of the Environment Food and Rural Affairs committee, Alistair Carmichael called the move “another regrettable decision” by Defra.

The MP for the Orkney and Shetland said the government had deeply fractured its relationship with farmers, and that it did not grasp the full reality of the situation.

“For many farmers, this latest move by the government will only add to the uncertainty and insecurity of their livelihoods and threaten their financial viability. 

Carmichael added that the decision only compounded the impression that the government does not grasp the realities facing farmers.

NFU president Tom Bradshaw said the news was “another shattering blow to English farms delivered, yet again, with no warning, no understand of the industry and a complete lack of compassion or care”.

He added that the fact the ministers were “trumpeting this as good news” showed how detached they are from the reality on the ground, and how little they understand the industry.

All existing SFI agreement holders will continue to be paid under the terms of their agreement for its duration.  Those who entered into a three-year SFI agreement earlier this year will be paid until 2028.

Defra said a reformed SFI scheme, with a budget to be confirmed in the Spending Review this summer will direct funding where there is greatest potential to do more on nature.

The department stated: “We will continue to engage closely with stakeholders while we review the scheme to make sure that it is done in a transparent way.”

Details of the reformed scheme are set to be announced in summer 2025.