Farming Minister Mark Spencer has today announced increased payments under the Government’s Environmental Land Management schemes.
Defra has been under pressure to provide clarity on the new environmental schemes being rolled out in England, amid uncertainty over what they entail and payment rates. Speaking at the Oxford Farming Conference, Mr Spencer announced that more money for farmers and landowners was being provided through both the Countryside Stewardship and the Sustainable Farming Incentive schemes, which he said would provide more support to the industry and drive uptake at a time of rising costs for farmers as a result of global challenges.
He also confirmed an expanded range of actions which farmers could be paid forunder the schemes, with details to be published soon.
The changes mean farmers could receive up to a further £1,000 per year for taking nature-friendly action through the Sustainable Farming Incentive (SFI). This new Management Payment will be made for the first 50 hectares of farm (£20/ha) in an SFI agreement, to cover the administrative costs of participation and to attract smaller businesses – many of whom are tenant farmers – who are currently under-represented in the scheme.
SFI is already paying farmers to improve soil and moorlands, and an expanded set of standards for 2023 will be published shortly.
In addition, farmers with a Countryside Stewardship (CS) agreement, of which there are now 30,000 across England, will see an average increase of 10% to their revenue payment rates – covering ongoing activity such as habitat management. Defra is also updating capital payment rates, which cover one-off projects such as hedgerow creation, with an average increase of 48%.
Capital and annual maintenance payments for the England Woodland Creation Offer (EWCO) and Tree Health Pilot (THP) will also be updated this year, helping to incentivise farmers to incorporate more trees as a valuable natural resource on farms.
Stacks up for business
Mr Spencer said: “My challenge to our great industry is simple – this year, take another look at the Environmental Land Management schemes and think about what options and grants will help support your farm.
“As custodians of more than 70% of our countryside, the nation is relying on its farmers to protect our landscapes as well as produce the high-quality food we are known for, and we are increasing payment rates to ensure farmers are not out of pocket for doing the right thing by the environment.
“By increasing the investment in these schemes, I want farmers to see this stacks up for business – whatever the size of your holding.”
Defra said the schemes, which are being phased in by 2027-8, will help the UK work towards its targets of halting the decline of nature by 2030 ad hitting net zero by 2050 the new system, while the increased payments recognise the challenges of rising input costs and other pressures which are being felt across the sector.
The SFI Management Payment will also help to drive uptake in the scheme among all farmers, including smaller farms who are currently under-represented in environmental schemes. SFI has been designed with tenant farmers firmly in mind, and is more accessible to them thanks to shorter, three-year agreements and allowing tenants on shorter contracts to enter into the scheme without the need for landlord consent, Defra added.
For many pig farmers, however, the issue is that to be eligible initially for the schemes, farmers had to be existing Basic Payment recipients, although some will be able to claim if they have other land.
Reaction
NFU Vice President David Exwood said the statement had still not provided the clarity required: “I regret that farmers and growers are making crucial long-term decisions that are essential to running viable and profitable food producing businesses without the vital clarity needed on ELM schemes and options that will be available,” he said.
“While some of these latest changes are welcome, including enhanced payments for farmers and landowners through the Countryside Stewardship scheme and the introduction of a Sustainable Farming Incentive (SFI) management payment, it risks being too little too late, especially given the current economic challenges we are experiencing and the rapid erosion of direct payments.
“It is hugely frustrating that nearly five years on from Defra’s Health and Harmony consultation, which set farming in England on a path towards public goods for public payments, we still only have three standards available for the SFI. It’s a sad reflection of the scheme’s progress and development that NFU members know more about what they will lose in direct payments than what they will gain from taking part in these new schemes.
“The NFU has always been very clear; for the ELM to succeed it needs to be simple, provide certainty and fairly reward farmers for taking part. This means schemes that are inclusive and available to every farm business – whether upland or lowland, tenant or owner-occupied – with a range of practical and profitable options available through a ‘foundation’ SFI standard to ensure the high uptake needed so these schemes have the desired impact.
“Ministers must also demonstrate transparently how direct payments have been redirected to the ELM programme.”
Country Land & Business Association president Mark Tufnell said the announcement shows government is listening and adapting to the concerns of farmers.
“It reduces uncertainty, supports proper valuations and creates stronger incentives for a wider range of farms to enter into the schemes. All this is to be welcomed, but everything is moving too slowly. We have had many promises of improvements in the future, but what we desperately need are details of payment rates and standards for 2023, particularly for the Sustainable Farming Incentive,” he said.
“We believe government’s policy on Environmental Land Management schemes to be potentially world-leading, but we need a world-leading government operation to underpin it. DEFRA is doing good work, they just need to do it more quickly.”
Soil Association Head of Farming Policy Gareth Morgan said the announcement didn’t go far enough. “Today’s payment hike recognises the poor uptake so far of the Sustainable Farming Incentive scheme, but farmers still await the bold vision and clarity they need to invest with confidence in a transition to nature-friendly farming systems, like organic. We are running out of time – government needs more game-changing action.
“If we are to truly reverse the catastrophic decline in wildlife and meet our climate goals, we need bolder ambition with support for farmers to protect nature across their entire farm, not just in protected areas. Transformative change is needed rather than tinkering around the edges.”