The Labour government has sparked outrage by confirming the immediate closure of new applications to the Sustainable Farming Incentive (SFI) scheme.
The move, which came without warning on Tuesday evening (11 March), has further eroded confidence in the government’s ability to support British agriculture.
The Department for Environment, Food and Rural Affairs (Defra) stated that all existing SFI agreements would be honoured, and outstanding eligible applications already submitted would be processed. However, this abrupt decision has sent shockwaves through the farming community, raising serious concerns about transparency and government competence.
The National Farmers’ Union (NFU) has condemned the announcement as “another shattering blow” to farmers, describing Defra as a “failing department” mired in chaos. NFU President Tom Bradshaw did not hold back, stating:
“This is another shattering blow to English farms, delivered yet again with no warning, no understanding of the industry and a complete lack of compassion or care.”
“We have had major concerns for years about whether there was the capability within Defra to deliver the agricultural transition post-Brexit. We have warned time and time again that large parts of the SFI were poorly designed and that the department was consistently failing to deliver it.”
Bradshaw accused the government of failing to consult with farmers, making reckless decisions, and breaking promises with no transparency.
A Legacy Dismantled
The Sustainable Farming Incentive, introduced by the previous Conservative government, has seen 50,000 farms participate in efforts to balance sustainable food production with nature recovery. SFI24, the largest of these schemes, boasts more than 37,000 multi-year agreements. Yet Labour claims it has “inherited an uncapped scheme, despite a finite farming budget” and that “now is the right time for a reset.”
“The highest ever level of participation in SFI means the maximum limit has now been reached,” Defra stated, adding that the government is “stopping accepting new SFI applications today.”
In a further twist, Labour is promising a “new and improved” SFI scheme, but details will only be revealed following the Spending Review.
Victoria Vyvyan, president of the Country Land and Business Association (CLA), did not mince her words, branding the move “the most cruel betrayal.”
“SFI was the most ambitious, forward-thinking and environmentally friendly agricultural policy seen anywhere in the world – it promised a fairer future for farmers and a greener future for the world. Labour promised to support it, but at the first available opportunity, they have instead scrapped it. It actively harms nature. It actively harms the environment.
“And, with war once again raging in Europe, to actively harm our food production is reckless beyond belief.”
A Series of Attacks on the Countryside
The sudden closure of the SFI comes against a backdrop of increasing hostility towards farmers under Labour’s watch. In the autumn budget, the government announced changes to Agricultural Property Relief (APR) and Business Property Relief (BPR), which will see farms valued at over £1 million incur a 20% inheritance tax charge from April 2026. Farmers warn that this will have a “catastrophic” impact on family-run businesses, placing their futures in jeopardy.
Combined with ongoing reductions in Basic Payment Scheme (BPS) subsidies, poor returns from major retailers, and worsening weather conditions, the farming industry is being left battered and bruised.
Political Fallout
Labour’s decision to axe the SFI in such a haphazard manner will only deepen mistrust among farmers and rural communities. The party has long struggled to shake off the perception that it prioritises urban interests over the countryside, and this latest move will do little to ease tensions.
Ministers have attempted to justify the closure, but their detached rhetoric has done little to pacify the industry. Farmers are left asking the same question – if Labour were truly committed to agricultural transition, why scrap a working scheme without a replacement ready?
One thing is certain: confidence in Labour’s rural policy is crumbling, and as the backlash grows, the party may soon discover that the countryside does not forgive or forget.
