NSA welcomes farming incentive scheme detail but expresses concerns over reality of the transition

2nd December 2021

The National Sheep Association (NSA) is pleased to hear the long-awaited detail published today on the Sustainable Farming Incentive (SFI) offer for 2022 and beyond.
 
Whilst NSA welcomes a clearer roadmap for the transition period and the plans for new scheme development, it is raising concern about the effect of the transition and the respective level of support in these first few years.
 
The announcement by Secretary of State George Eustice today (Thursday 2nd December) outlined how actions to generate environmental benefits and an annual health and welfare visit will be supported and how the scheme will work in 2022, and for the subsequent years to follow; in essence, highlighting how the SFI and Environmental Land Management (ELMS) offer will incrementally increase as the Basic Payment Scheme (BPS) declines.
 
NSA Chief Executive Phil Stocker comments: “It will not please everyone, some will not be welcoming any move away from BPS, many will realise that much of the money is in return for doing specific things – some that carry a cost, and others will say what is being offered is not ambitious enough.
 
“We also have to realise that while the SFI offer is relatively small the aim is for future scheme development to keep pace with the percentage reductions in BPS – this isn’t to say ELMS is a replacement for BPS but it should be offering the opportunity for farmers to replace much of that income if they choose to.”
 
NSA believes there is a risk that the early offer is not substantial enough to attract farmers to engage but do recognise that it is at least the start of a transition, Defra is in the mood to listen, learn and change where necessary – and they do want this to work. It will be the job of the NSA and others to keep the pressure on to make sure it does work as it develops and to inform and influence this change where we can.
 
Mr Stocker highlights the efforts taken to reach this stage. He continues: “Getting this far has been hard work – for Defra and for the multiple organisations who have been involved in co-creation. It also has to be remembered that co-creation between industry, policymakers, budget holders, and environmental non-governmental organisations (NGO'S) means no one will get everything they want.
 
“But it is worth considering the positive progress. We have a seven-year transition period and no cliff edge, which is exactly what most farmers wanted, we have the first ‘tier of ELMS’ as a sustainable farming incentive – a scheme for farming practices, and we have a scheme that gives the flexibility to enter at a field level, giving flexibility for the farmer to do what is right for them. The downside of this could be complexity but again Defra is aware of this and have simplification in mind. We also have an animal health and welfare scheme – something the NSA has long called for – in fact NSA presented proposals to the Animal Health and Welfare Board for England way back in 2014 for a Sheep Health Scheme not a million miles away from what is emerging as Pathway.”
 
NSA has long pushed for these new schemes to be available for all farmers from the outset, especially those with no entitlements and would have liked to see this break from BPS entitlements earlier than 2024/5. Further, given how Mr Eustice also makes mention of 40% of sheep farmers not receiving this payment anyway, it would make sense for this break to be brought forward.
 
Mr Stocker concludes: “Even with the detail revealed today, there are still some questions and clarity sought such as capital payment details still not being clear for some grasslands, beyond soil standards, which have been included in the SFI Pilot, also for fencing, hedge-planting, stonewalling, organic farms and even agroforestry and woodland. Also, the statement made no actual mention of progress on the proposed retirement scheme.

"NSA is equally concerned about the attractiveness and adequacy of the moorland and rough grazing standards, and concerned about the approach to commons land and the ongoing link with Countryside Stewardship gives concern that we will see ongoing pressure to reduce stock numbers.”