NFU said its analysis shows that the SFI27 scheme needs more than £1 billion in funding to meet the expected demand from farmers next year, with 48,000 farmers believed to be eligible to apply.

The union added that around £960 million in agri-environment funding is due to be “freed up” from expired or expiring schemes, and it is calling for this budget to be recycled into SFI27.

Following the “strong appetite” that was demonstrated in applications for SFI26, NFU said the funding would enable farmers to continue to deliver environmental work.

Key SFI27 asks

NFU’s key asks from Defra for SFI27 include:

• Provide a £1 billion budget that “matches farmers’ ambition to deliver for the environment”
• Open SFI early in 2027, from 1st April, and prioritise farmers whose existing agreements are expiring to prevent a break in environmental work
• Allocate funding on a £/hectare basis
• Address the lack of access for common land to SFI and Countryside Stewardship Higher Tier
• Publish a plan for Environmental Land Management Schemes (ELMs)

NFU vice-president Robyn Munt stated: “Farmers have shown in their droves that they want to take part in agri-environment schemes. The experience of SFI26 left no doubt about the strength of that demand.

“For years, the Government has contracted farmers to deliver the environmental work needed to underpin its legally binding targets. Farmers have committed land, time and resources to restoring hedgerows, creating buffer strips and improving soils, all while continuing to produce food.

“As existing agri-environment schemes come to an end and funding is freed up, Defra must honour its side of the partnership with farmers by reinvesting that money in SFI27 and ensuring its budget matches demand. It should open the scheme in early 2027 and ensure the wider Environmental Land Management schemes (ELMs) are fully functioning, alongside publishing a clear ELMs strategy which would give farmers the certainty to plan and invest.”

More funding is needed to secure a resilient food system

NFU said that figures from OECD show that the UK invests less in agriculture than other economies, at 0.2% of GDP, which is around half the OECD average.

Munt commented: “The OECD’s findings underline that creating the right conditions for British farming to succeed is not simply an agricultural priority, but a national resilience imperative. A stable and predictable agricultural policy would give farm businesses the confidence to plan for the long term, withstand global shocks, produce the nation’s food and continue delivering for the environment.

“A properly funded SFI27 within a fully functioning environmental scheme offer, backed by a clear long-term plan, is central to providing that certainty and building a secure, resilient food system.”

Munt continued: “A properly funded SFI27 within a fully functioning environmental scheme offer, backed by a clear long-term plan, is central to providing that certainty and building a secure, resilient food system. British farmers are ready to play their part. Defra must now give them the tools and confidence to do so.”

Defra to “scrap” first-come-first-served application system

Many farmers applying for Window 2 of the SFI26 scheme were left frustrated after the £233 million budget was fully allocated within hours of it opening on 22nd September. Defra has now confirmed in a statement that the funding for the 2027 scheme will not be allocated on a first-come-first served basis. A spokesperson from the department said: “We want to kickstart the next round of the SFI scheme as soon as possible and will scrap the first-come-first-served system in 2027.

“Right now, we are listening to farmers and working directly with industry representatives to learn lessons and build a better scheme.”