Payment rates are currently calculated using income foregone plus costs. Payment rates for 11 of the 23 SFI actions increased on 1 January 2024 for new and existing agreement holders to reflect the latest cost and income data. The updated rates will be applied to existing SFI agreements from the first day of the month the agreement started and from the start of new agreements. Payment rates for 101 of the 138 Countryside Stewardship (CS) actions also increased on 1 January 2024 for new and existing agreement holders to reflect the latest cost and income data. On average SFI and CS agreement values will increase by around 10%. We published a full list of updated payment rates alongside the latest Agricultural Transition Plan update in January 2024. The approach to calculating the updated payment rates has been independently verified. In 2024, we intend to introduce the first set of payment premiums to encourage farmers and land managers to deliver high value actions needed to achieve our environmental outcomes, including on designated sites such as SSSIs and along watercourses. This will be offered by increasing payment rates from 1 January 2024 for 21 high priority actions where increased uptake is important to achieve our environmental outcomes. We will also encourage farmers and land managers to carry out combinations of actions that deliver greater environmental benefits when done together and at scale. We will continue to develop these payments further in future years, so we are increasingly encouraging farmers to undertake the actions we need them to take to achieve our ambitious legally binding targets. We will keep these premium payments under review as we continue to improve and expand schemes over time, so we can adapt them to best achieve our target outcomes.