NFU warns against SFI divide at Labour Party Conference
The NFU has urged Defra to open the next Sustainable Farming Incentive offer in early 2027 after the latest funding window was exhausted in less than six hours, leaving farmers facing further uncertainty at a time of severe financial pressure.
Speaking at the Labour Party Conference, NFU President Tom Bradshaw warned that agriculture could not continue to be divided into SFI “haves” and “have nots” based on how quickly farmers were able to submit an application.
Addressing Labour MPs, Defra ministers, party members and farmers, Mr Bradshaw said the NFU had repeatedly warned Defra that demand for the second SFI26 application window would far exceed the funding available.
The budget was exhausted in less than six hours, leaving many farmers “high, dry and desperate”, unable to access support for producing food, delivering environmental improvements and strengthening the resilience of their businesses.
“Farmers want to deliver for the environment and embrace more sustainable farming, but the budget did not match that ambition,” Tom said.
“We now have SFI ‘haves’ and ‘have nots’, based purely on the speed of pressing a button. We cannot go on like this.”
“We are calling on the government to commit to opening the next iteration of SFI in early 2027, allowing agreements to begin from 1 April.”
NFU President Tom Bradshaw
Open SFI27 early
The NFU is calling on the government to open SFI27 in early 2027, allowing new agreements to begin from 1 April.
Farmers with expiring agreements should be prioritised to minimise gaps in environmental payments, followed by regular opportunities for other businesses to access the scheme.
The NFU is also asking Defra to ensure the budget for SFI27 can match farmers’ ambitions to deliver environmental improvement and is seeking an explanation from Defra about the apparent gap in funding.
The value of expiring agreements was more than £520 million, while the combined budget for the two SFI26 application windows was £310 million. The NFU is calling for transparency over the £210 million difference and clarity about the funding available for future agreements.
Other priorities include:
- Enabling common land to access both SFI and Countryside Stewardship Higher Tier.
- Publishing a clear Environmental Land Management roadmap for the remainder of this Parliament.
- Setting out when farmers and growers can expect new schemes to open.
- Securing a published Rural Payments Agency review into the barriers encountered by applicants on 22 September 2026, including the number of incomplete or unsuccessful applications.
Read a comprehensive list of the asks we are demanding of Defra after the closure of SFI26 Window 2.
“Food security cannot be delivered through slogans. It depends on farm businesses having the confidence, stability and financial strength to keep producing.”
NFU President Tom Bradshaw
‘Cash flow is at crisis point’
The call comes as farm businesses continue to face intense financial pressure following the hardest summer British farming has faced in a generation.
Tom warned that no farming sector had escaped the impact, with confidence fragile, cash flow at “crisis point” and investment suffering.
He said the Prime Minister’s commitment to growth in every postcode could not be delivered without a thriving farming sector.
“Farmers and farming can deliver that, alongside food security and delivery for nature,” he said.
Tom added that he still believed there were “grounds for optimism”, optimistic following a meeting with the Prime Minister on a farm in Cornwall. He welcomed the Prime Minister’s recognition that farming and food production form part of Britain’s sovereign production and manufacturing capacity, describing it as the strongest signal from Number 10 for many years.
However, he warned that recognition must now be matched by practical measures that give farm businesses confidence, stability and the financial strength to continue producing.
“Food security cannot be delivered through slogans,” Mr Bradshaw said. “It depends on farm businesses having the confidence, stability and financial strength to keep producing.
“If those businesses are allowed to fail, the nation’s food security fails with them. And alongside defence and energy, what could be more important than our ability to feed ourselves?”
“The budget was exhausted in less than six hours. Farmers charged with producing the nation’s food, delivering for nature and building the resilience of their businesses have been left high, dry and desperate.”
NFU President Tom Bradshaw
NFU sets out Budget priorities
Ahead of the Budget in October, the NFU is calling on the Chancellor to introduce measures that strengthen farm business resilience, support investment and protect the nation’s food security.
The NFU is asking the government to:
- Increase the Annual Investment Allowance to at least £5 million and extend its scope, supporting long-term investment in productivity, energy efficiency and water management.
- Fund temporary interest-free Keep Britain Growing Loans, helping businesses most affected by the summer’s challenges to continue producing food next year.
- Ensure the Carbon Border Adjustment Mechanism does not disadvantage domestic food producers compared with imported products.
- Remove changes to Agricultural Property Relief and Business Property Relief, giving farming businesses greater confidence to invest, grow and plan for succession.
- Introduce enhanced capital allowances for incorporated and unincorporated businesses, encouraging investment in low-carbon technology and infrastructure.
Tom added that British farming was ready to contribute to economic growth, environmental delivery and national food security, but needed the government to provide the right conditions.
“British farmers are ready to grow,” he said. “What we need from government is confidence, certainty and a fair chance to do it.”
