Farmers stuck on lower payments after SFI switch blocked

Farmers in England have complained at the lack of flexibility in switching between traditional stewardship agreements and Defra’s Sustainable Farming Incentive (SFI), which has left many stuck on lower payment rates.

A process which should allow for a seamless transition between schemes has left some tied into existing Entry Level Stewardship (ELS) and Higher Level Stewardship (HLS) schemes – or risk having to make repayments for leaving early.

Agricultural consultants have warned of the impact on farm businesses, and have voiced their concerns to the Rural Payments Agency (RPA).

See also: Latest SFI offer: Greater ambition and premium payments

Tom Cooper, a chartered surveyor and land agent at JH Pickup, said: “The RPA had said that you could move freely between schemes, but now it is saying you had one window of opportunity last year for a five-year extension of the ELS/HLS agreement.”

Mr Cooper added that now the RPA has suggested that farm businesses wanting to leave these five-year commitments may face a penalty for doing so early.

“I’ve got clients who want to keep doing stuff, so it’s not like they want to just get rid of it and sack off all the environmental parts. They want to just move from ELS/HLS to another agreement.”

Mr Cooper said for winter bird food mixture, farmers on older agreements are getting paid about £450/ha, whereas those in the SFI are being paid £853/ha.

“I don’t see why you should be penalised if you are putting the same land into a new agreement,” he said.

Government response

Farmers Weekly contacted the RPA for clarification on moving between older stewardship agreements and SFI.

It confirmed that where a request is made to move mid-agreement, there will be no penalty payable. However, funds received may need to be returned depending on the nature of the HLS agreement and the SFI application.

It also stated that HLS agreement holders can only transfer to SFI at the end of an agreement period because HLS agreements have a different range of complex options that are not directly comparable with SFI actions.

Defra is also reportedly looking into how its existing HLS agreement holders can interact with the new combined Mid Tier and SFI offer later this year.

It is also looking at how it can provide better flexibility for those wanting to leave an agreement early.

A RPA spokesperson said: “We want farmers in existing agreements to continue to take part in our new Environmental Land Management schemes.

“The RPA offers a range of support to those navigating agricultural transition, and we are working to ensure it is as easy as possible for farmers to enter into new schemes or add offers to complement their existing agreements.

“There are no penalties for farmers who choose to move from existing agreements to the Sustainable Farming Incentive – although, in some instances, funds received may need to be returned dependent on the individual circumstances of the agreement.”