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Thousands of farmers face uncertainty over the future of environmental work on their land when existing agreements come to an end, warns Farm Business consultancy firm GSC Grays.
Official Defra figures show around 21,300 farm businesses had environmental agreements due to expire on or before 28 February 2027, while around 12,200 applications were submitted during SFI26 Window 2.¹
Of those applications, around 8,800 came from farmers whose Countryside Stewardship, Environmental Stewardship or Sustainable Farming Incentive agreements are due to expire by that date. Around 10% of Window 2 applications came from businesses without an existing CS, ES or SFI agreement.²
Robert Sullivan, Director at GSC Grays, said the figures raise concerns about what happens to land currently being managed for environmental benefit when agreements come to an end.
He said: “On the basis of the figures published by Defra, 12,500 farmers with existing agreements coming to an end either did not submit an application or chose not to apply.
“This matters because these agreements have supported the long term management of land for habitats, biodiversity, soil improvement and other environmental benefits. If that funding is no longer available, farmers still have to run financially viable businesses and some will inevitably have to reconsider how that land is managed.
For many farm businesses, these payments provide important income where land is being managed to deliver wider environmental benefits.
Robert added: “Land currently managed primarily for environmental benefit may well have to be brought back into more productive agricultural use, whether through cropping, intensifying the grazing practices or other changes in management.
“This is not about farmers turning their backs on environmental delivery. It reflects the commercial reality that environmental management has a value and has to work alongside a sustainable farming business.
“The concern is that without continuity of funding, some of the environmental gains achieved over recent years could begin to unravel. Farmers and Government have already invested significant time and money in delivering those benefits and losing them would be counterproductive.”
The concerns follow a difficult SFI26 Window 2 application process, with farmers and advisers under intense pressure to submit applications before the available funding was exhausted.
Technical issues and the first come, first served approach added to the frustration, while the speed of the process also raised concerns that some farmers may have felt pressure to prioritise securing a place in the scheme over selecting the options best suited to their land and business.
Defra has since confirmed it is exploring alternatives to first come, first served for SFI in 2027.
Robert said: “The speed at which the funding was allocated shows the level of demand, but farmers need a system that gives them a fair opportunity to apply, works reliably and gives them enough time to make properly considered decisions.
“The fact that Defra is now looking at alternatives is welcome, but this needs to be the catalyst for a wider look at how environmental funding is delivered.
“Environmental management requires long term planning, particularly when it comes to improving soils, creating habitats and delivering biodiversity benefits and cannot sensibly be shaped around short application windows and uncertainty over future funding.
“We need a system that gives farmers confidence to make long term decisions, allows them to choose the right options for their land and provides greater continuity between agreements.
“Sustainable food production, viable farm businesses and environmental delivery have to work alongside one another. SFI27 is an opportunity to learn from what has happened and build a system that supports all three.”