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Government gives crucial commitment to end disruption to Sustainable Farming Incentive (SFI) scheme

James Bush, Head of Farm Business at GSC Grays, the land and property experts, believes an assurance that disruption to the Sustainable Farming Incentive (SFI) will not be repeated is a crucial step forward after Emma Reynolds, the Environment Secretary, detailed reforms aimed at simplifying the scheme.

Announcing the reforms the Minister acknowledged the SFI scheme had become “too complex” and the unexpected closure last year damaged trust and confidence. She said there will be “no more sudden, unexpected closures” and the changes are aimed at levelling the playing field and providing stable, predictable delivery. There will be more emphasis on actions that support sustainable food production and an improved management of the scheme.

However, James Bush wants to see the finer details of the reforms following news that the SFI will open for applications in June, prioritising smaller farms and those yet to engage with existing schemes. A second application window will follow in September for current scheme participants and larger businesses.

He said: “Importantly, the Minister acknowledged last year’s abrupt scheme closure and confirmed that such disruption will not be repeated, a reassuring commitment for the industry.

“While these developments are encouraging, the finer details will be critical. We await further guidance on eligibility criteria and application processes so we can provide structured, tailored advice to our clients ahead of the June opening.”

Besides addressing concerns over SFI, the Minister also announced a new £30 million Farmer Collaboration Fund to support farmer groups in growing their businesses, building partnerships and sharing best practice.

There will be a new Farming and Food Partnership Board to include farmers, processors, retailers and finance reps for policy input aimed at driving growth across the sector and ensuring closer engagement with farmers. There will also be planning reforms to unlock infrastructure, action on supply chain fairness, private investment and expanded food and drink trade missions.

However, the Minister confirmed there would be no additional changes to Agricultural and Business Property Relief.

James Bush added: “On tax relief, the absence of additional concessions for Agricultural and Business Property Relief was anticipated after being raised from £1 m to £2.5 m (up to £5 m for couples). Our recommendation remains to begin planning now for future-proofing your business once the specifics of the increased reliefs are confirmed.

“Collaboration continues to be a key theme, and it is positive to see government funding directed toward initiatives that foster joint working to improve productivity and environmental outcomes.

“Success will depend on a cultural shift for some, but we believe this approach can only benefit the sector. Combined with the proposed Partnership Board and associated funding streams, these measures have the potential to drive meaningful change, provided they are implemented effectively. This aligns closely with priorities highlighted in the Oxford Farming Conference 2026 report.

“We hope businesses like ours will have the opportunity to contribute to the New Partnership Board. As advisors deeply involved in the day-to-day operations of farming enterprises, we believe frontline expertise is essential to shaping and delivering positive change across the industry.”

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