SFI – English be prepared, Welsh match up to your farm

The English, Welsh border is currently making a big impact on farming decisions, says Olivia Manning, Balfours Associate Partner, with pros and cons to being either side the border.

For farm capital grants generally it’s the English side who are in the better position, with more choice and better flexibility in grants for capital investment. However, when it comes to the certainty of regular payments, at this point in time Welsh schemes provide significantly more support.

Olivia explains: “The base line for farms in Wales is to do nothing and continue to be paid the Basic Payment Scheme at 60% of the 2025 payment. Conversely in England the BPS has been eroded down to a few hundred pounds to farmers.

Alternatively, instead of receiving BPS payment, Welsh farmers and landowners can take advantage of the Sustainable Farming Scheme, introduced in January 2026. To do this land occupiers must comply with set actions. There is increased record keeping and accountability, but payments include woodland management and for some farms look to be worthwhile.

There is, however, little certainty for English farms. Only this week (Feb 24) it was confirmed by DEFRA Secretary Emma Reynolds at the NFU Conference that small farms – three to 50 hectares – will be able to apply from June. A second application window open to all farms will open in September.  “The DEFRA secretary also announced that SFI actions will be reduced from 102 to 71, with some payments rate for actions also being reduced and a limit on the area of certain actions that can be included. There is limited funding with agreements capped at £100,000 and once funds have gone applications will be closed”.

“On this basis we are encouraging clients to be prepared. Look at your farm as a whole, consider options and draft up an agreement so when the window opens an application can be submitted promptly,” Olivia advises. If you would like to discuss your farm with Olivia, call 01981 570727.