SFI22 farmers told to repay £250 after RPA blunder

Farmers in England have been left frustrated after the Rural Payments Agency (RPA) demanded repayment of £250 from participants in the 2022 Sustainable Farming Incentive (SFI), following an administrative error that led to overpayments.

The clawback follows a miscalculation when the previous Conservative government abruptly closed the 2022 scheme to fast-track the rollout of the expanded SFI 2023 offer.

Instead of issuing 75% of the annual management fee, the RPA mistakenly paid 100% – a difference of £250 per agreement holder.

See also: English farmers face funding gap as CS agreements expire

Farmers are now receiving letters from Defra under the current Labour administration informing them they were overpaid and must return the funds.

One farmer, who asked not to be named, said: “Chancellor Rachel Reeves is clearly keeping an eye on every penny – and now she’s checking under farmers’ wellies for spare change.”

The exact process for repayment has yet to be confirmed, but many in the sector have already voiced frustration at both the error and the timing.

“This comes at a torrid time for the farming industry when there are multiple, additional financial pressures,” said Rob Gazely, a farming consultant and partner at Ceres Rural, based in Essex.

While the financial impact is relatively minor, the clawback has triggered resentment among agreement holders, many of whom are already grappling with falling margins and rising input costs.

Mr Gazely, who advises dozens of farmers across southern and eastern England, said he initially assumed the repayment letter was an isolated mistake. But soon, similar letters began arriving across his client base.

“The initial problem was the early termination of the 2022 SFI scheme. It appears the RPA had paid a lot of farmers the full £1,000 – then realised they shouldn’t have. Now, they’re trying to claw it back,” he explained.

Confusion and U-turns

The incident adds to a growing list of frustrations for farmers navigating England’s post-CAP and Basic Payment Scheme agri-environment landscape. Defra has been widely criticised for frequent U-turns, shifting payment rates, and inconsistent scheme criteria.

The 2022 SFI offered £22/ha for soil management. That figure was later scrapped in favour of a reduced £5.80/ha rate under SFI 2023, prompting anger and, in some cases, threats of legal action for breach of contract.

Defra and the RPA have also come under fire for the sudden closure of the SFI 2025 scheme on 11 March this year after ministers said it was oversubscribed. Defra says it plans to reopen the scheme to new applicants next year, but farmers are still awaiting further details.

By May 2024, more than 13,900 farmers had signed up to SFI 2023. That figure had grown to more than 39,000 by April 2025.

Farmers Weekly has requested a response from Defra/RPA.