8 Deferred

Require Government to outline next SFI iteration and farm profitability plan by October 2025

Recommendation
The Government should set out what the next iteration of SFI will look like and the date it will be open for applications in the response to this report. It must also state how it intends to increase farm profitability, using a sector-by-sector approach, no later than October 2025. (Recommendation, Paragraph 29) 32 Taxation, consultation and evaluation
Government Response Summary
The government defers providing full details on the next SFI iteration and its application date, committing to more information later this summer. It also defers stating how it will increase farm profitability by announcing a new review of farming profitability, to be led by Baroness Minette Batters.
Government Response
Deferred
HM Government Deferred
The Government has committed to providing more information about the reformed SFI offer later this summer. As set out in a Written Ministerial Statement by the Minister for Food Security and Rural Affairs on 12 March 2025, the reformed SFI scheme will: • deliver the Government’s vision of a sector with food production at its core, supporting less resilient farm businesses while ensuring nature recovery • ensure we deliver value for money for taxpayers as we invest in sustainable food production and nature recovery • have a clear budget set and put in place strong budgetary controls so that SFI is affordable • better target SFI actions fairly and effectively, focusing on helping less productive land contribute to our priorities for food, farming and nature The analysis and recommendations set out in the Committee’s report will be considered in the development of the next steps and future communications on reformed SFI. The Government is also working closely with farmers and industry stakeholders to design the reformed SFI offer. Additionally, Baroness Minette Batters, former NFU president and current farmer, has been appointed by Defra Secretary of State to lead a review of farming profitability. The work will be supported by the newly formed Farming Profitability Review Team within Defra. Baroness Batters’ review will sit alongside the work of the Food Strategy, Farming Roadmap and the Land Use Framework. It will build on the review of Defra’s regulatory landscape (led by Dan Corry) and wider Government missions and priorities – including growth.
Timeline
Recommendation age 1.0 yr
Report published 16 May 2025