UK farmers face funding gap as SFI budget exhausts in six hours

The Sustainable Farming Incentive (SFI) second-window budget of £253 million was exhausted in less than six hours, leaving many farmers unable to secure subsidies. The National Farmers' Union (NFU) has criticized the outcome, stating that the budget did not match the ambition for sustainable farming and has created a divide between “haves” and “have nots” based on the speed of application.

NFU President Tom Bradshaw described farmers as being left “high, dry and desperate,” while the Country Land and Business Association (CLA) urged the Department for Environment, Food & Rural Affairs (Defra) to provide clear guidance for those who failed to secure an agreement.

In response, Farming Minister Stephen Morgan stated that the government developed a fairer system by capping applications at £100,000 to prioritize small farms and those new to environmental land management. He noted that the total investment under new SFI26 agreements will reach nearly £1 billion over three years.

Financial experts from Kinbrook Group’s Old Mill and Duncan & Toplis are advising affected farmers to review their business plans and explore alternative funding to mitigate the loss of anticipated income, which can account for up to 30% of total business income for some producers.