Britain is one of the world’s most nature-depleted countries – so why did the government close the Sustainable Farming Incentive?

Britain is one of the world’s most nature-depleted countries – so why did the government close the Sustainable Farming Incentive?

Britain is one of the world’s most nature-depleted countries. So why has Labour closed the Sustainable Farming Incentive, a scheme to reward farmers for protecting the natural environment?


The State of Nature 2023 report commissioned by DEFRA reveals that Britain is one of the most nature-depleted countries on the planet. Much of the blame is placed on the intensification of farming since the Second World War.

The Sustainable Farming Incentive (SFI) is a Government scheme that financially rewards farmers in England for adopting environmentally sustainable practices, such as protecting soil, rivers and woodlands. It raised hopes that this could reverse the trend of habitat loss and biodiversity decline. These hopes were dealt a blow when, on 11 March 2025 with little warning, the SFI was closed to new applicants.

“With record numbers of farm businesses in farming schemes and the sustainable farming budget successfully allocated, we will stop accepting new applications for SFI from today,” the Government said.

For many farmers, it was a shock. Farming, more than most businesses, relies on long-term planning and stability. Bizza Walters, a farmer from Warwickshire who is influential on social media, explains: “A lot of farmers, including ourselves, have been prepping to put an application in, which is expensive. All that money that’s been spent is now meaningless. It’s incredibly frustrating and very worrying because there’s no talk about what it’s being replaced with.”

For organic farmers, the blow was particularly heavy. Soil Association farming advisor Jerry Alford says: “The frustration is that organic payments had only just become available outside of Countryside Stewardship (CS) schemes, and there was significant interest in farms looking to convert… Those losing out include small businesses who have less than five hectares and had not previously been able to apply for any environmental support.”

Tony Juniper is the chair of Natural England, which oversees these environmental schemes. He told me: “You could see that as a success story in a funny sort of a way because, to begin with, there was a concern that farmers wouldn’t want to sign up for the new schemes. But they did in large numbers and, as a result of that, the budget was exhausted.”

So what happens next? Will the Sustainable Farming Incentive return in 2026? I asked DEFRA and received a statement from the Minister for Food and Rural Affairs, Daniel Zeicher. In it, Zeicher mentions: “Our improved SFI scheme will be another step in this Government’s New Deal for Farmers to support growth and return farm businesses to profitability”.

When I pressed DEFRA for a time frame, I was told: “Further information on our reformed SFI offer will be published later this year.” Farmers will just have to wait and see.

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Top image: creating wildflower meadows to boost biodiversity is rewarded under the Sustainable Farming Incentive. Credit: Getty

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