The UK government has announced that it will backtrack on its decision to close applications for the Sustainable Farming Incentive scheme. Defra (the Department for Environment, Food & Rural Affairs) controversially closed the scheme earlier this year, abruptly announcing on 11th March that the “SFI24 has reached its completion, and the Government is stopping accepting new SFI applications”[i], having failed to give prior warning.
Now in an apparent climbdown, Defra have announced that farmers who had started their applications in the two months prior to the closure have been given a chance to complete them, following the threat of a legal challenge by the NFU (National Farmers Union).
Defra explained that the reason for the closure was that the Government had successfully allocated the entire SFI budget earlier in the year and could therefore no longer accept new applications for the scheme. It stated that there are more than 37,000 live SFI agreements currently in place, under which money continues to be paid to farmers this year and will continue to be paid over future years.
However, it has now emerged that a technical error in the 2024 Sustainable Farming Incentive (SFI) application meant roughly 3,000 applicants were incorrectly shown a message stating that they still had 6 weeks to submit their applications, despite the scheme closing during that window. The department admitted that outdated messages from the previous year’s scheme were mistakenly displayed on the SFI 2024 application portal, and the error was not corrected before the scheme was abruptly closed on 11th March 2025.
Addressing the closure, Defra farming minister Daniel Zeichner said in a written statement:
“I have decided to allow applications to be made to the SFI 2024 scheme by those who had started an application within 2 months of 11 March 2025, but who had not submitted the application by that date. This is relevant to around 3,000 applications which were started on 12 January 2025 or later. Eligible applicants will be given a six-week window in which to make an application. My department will shortly be contacting applicants who are eligible to let them know when this window will open and close.”[ii]
Defra’s decision followed threats of legal action proposed by a group of farmers acting via the NFU. In response to the U-turn, Tom Bradshaw, NFU President has said: “The government’s abrupt and wholly unacceptable decision to close the scheme was always wrong. While it’s good to see an acknowledgement that the decision to close the scheme was flawed, we are disappointed by the constraints imposed which will still leave many farmers unfairly disadvantaged.”[iii]
He added: “This is a really critical time for the farming industry, and while today’s announcement falls short of what our members deserve, this issue highlights the NFU at its very best, working with its members to stand up for what we believe is right.”[iv]
A survey undertaken by the Country Land and Business Association (CLA) last month found that almost 95% of respondents were looking to apply for more SFI options before the scheme suddenly closed. The CLA has said that in future it would like to see nature-friendly farming schemes funded appropriately and treated by the government in the same manner as national infrastructure or public services.
Victoria Vyvyan, CLA President, said: “We’ve been lobbying for the government to take note of the thousands of farmers who were mid-application when the SFI scheme suddenly shut, and we’re glad they have now listened.”[v]
She added: “It’s a limited amount of money, but it does take a bit of the sting out of the suddenness of the closure. The way for Defra to avoid such a shock again is to be open and transparent, and work with industry to design the revised scheme.”[vi]
[ii] Written statements - Written questions, answers and statements - UK Parliament
[iii] Some farmers can apply for SFI funding, Defra confirms
[iv] Ibid
[v] Farmers locked out of SFI mid-application will be allowed to continue, Defra confirms • CLA
[vi] Ibid
Lauren has extensive experience as an analyst and market researcher in the digital technology and travel sectors. She has a background in researching and forecasting emerging technologies, with a particular passion for the Videogames and eSports industries. She joined the Critical Information Group as Head of Reports and Market Research at GRC World Forums, and leads the content and data research team at the Zero Carbon Academy. “What drew me to the academy is the opportunity to add content and commentary around sustainability across a wealth of industries and sectors.”
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