Farming Budget, Sustainable Farming Incentive (SFI) and Capital Grants Confirmed at Groundswell
The Environment Secretary, Steve Reed, used his speech at Groundswell yesterday to confirm the Department for Environment, Food and Rural Affairs (Defra)’s farming budget for England following the Government’s recent spending review. He highlighted that £2.7 billion a year will be committed to sustainable farming and nature recovery over the next three years, with funding for Environmental Land Management schemes (ELMs) will reach to £2 billion in 2029.
The Government’s commitment to the Sustainable Farming Incentive (SFI) was reiterated, with a particular focus on:
- Water quality and biodiversity
- A simplification of the scheme
- An upgrade to the application IT system
Further details of the reformed SFI offer is promised to be shared later in the summer, and the scheme will start accepting applications in the new year.
The reopening of the Capital Grants scheme from 3 July 2025 was also announced. £150 million will be available to invest in nature-friendly farming. This includes 78 eligible items such as:
- Hedgerow planting
- Habitat restoration
- Educational infrastructure.
In addition, over £200 million will be invested in the Farming Innovation Programme through to 2030.
Policy set-pieces in the form of the 25-year Farming Roadmap and the Farm Profitability Review were identified as part of a wider reset for farming.
These are areas where the Agricultural Industries Confederation (AIC) is already actively engaged with Defra.
Author
