Simon Britton, Head of Agri-Consultancy at Knight Frank, said:
“The immediate closure of the Sustainable Farming Incentive (SFI) applications, without warning or consultation, is deeply frustrating for farmers who were planning on this financial support. Many now face unexpected cash flow pressures, while others with applications delayed by agency queries have been unfairly excluded. A scheme intended to provide stability during the transition has instead created further uncertainty, raising serious concerns about the government’s approach to agricultural policy.
“Looking ahead, we need more clarity on the next phase and intended direction of SFI. Early indications suggest it will be more targeted towards the environment and less favourable land for food production. A positive could be this will go some way in supporting struggling upland farmers but could mean arable and lowland livestock businesses need to reconsider their expectations. Until details emerge, farmers planning for the next 6, 12 or 18 months should discount SFI from their financial strategy and focus on building resilience through cost control and efficiency.
“The immediate priority for affected businesses is to review cash flow and adjust plans accordingly. Identifying cost efficiencies will be a priority, and exploring alternative options, such as the Countryside Stewardship Higher-tier scheme – may be necessary, though it comes with limited availability and longer lead times. Since the capping of the Basic Payment Scheme (BPS), cash flow has become a growing challenge for many farm businesses, and this latest disruption only reinforces the need for careful financial planning.
“At Knight Frank, we continue to advise farmers to focus on what they can control. Government policy remains unpredictable, but businesses that understand their cost base, manage cash flow effectively and improve efficiency will be best placed to navigate whatever comes next.”