May 2025 Sustainable Farming Incentive (SFI) update

Farms who had started an SFI application, but not submitted, will now be able to complete and submit the application. That’s good news, and so allows the good work of farmers to continue. Our Head of Farming Policy, Gareth Morgan, has posted a blog with more information, and we will continue to provide updates as the process gets underway. Please also keep checking Defra’s website on gov.uk. 

There is a limit of one application per farm business, as well as a limit of £9300 per year plus management fee. There will not be an option for farms to add rotational options to existing agreements. 

Those with SFI agreements 

We are still waiting for further details on the next version of SFI. However, we're aware that inspections have been taking place. Ensure that you have completed what you have claimed for, particularly reports and soil analysis. We are also hearing of farms in SFI23 agreements having areas removed and payments reduced because of HEFER (Historic Environment Farm Environment Records) and SHINE (Selected Heritage Inventory for Natural England) restrictions, which were not flagged during the application process.  

There has been no update on payment rates for existing Higher Tier schemes despite being due last month.  

Farming, equipment and technology fund grants have been announced. Applications open 29th May and close 10th June.  

New claimants prioritised 

The process will be slightly more complex than last time. Payment amounts will be based on actual cost, rather than a set value as in the last round. There is a limited budget, and there is also a scoring system. This will ensure that previous applicants are further down the list, and that people applying for multiple things, do not get an advantage over people just applying for one. There are three separate sections:

• Productivity, such as cover crop rollers and tree shears.
• Slurry management-such as separators, dribble bars, etc.
• Animal health and welfare, such as handling systems and mobile water troughs for grazing systems.

Find out more

Find out more and how to apply on the Farming Equipment and Technology Fund (FETF) 2025 gov.uk page.

You can also see our Future Farm Resilience resources page.