Environmental Schemes: Stick or Twst

In this episode we are talking to Paul Pickford farm business consultant and Beth Metson environmental farm consultant at Agrii.

Today we will be making sense of environmental schemes, what does it mean for farm activity, and what is the direction of travel.

Where Are We at with Environmental Schemes?

We’re approaching the end of the old schemes. The Countryside Stewardship Scheme will have one final year for new entrants, which is a great opportunity that shouldn’t be missed. In my experience, each new scheme has historically not paid as well as the one before, so now is the time to either renew existing agreements or sign up for the next five years to secure income stability.

How Are Farmers Feeling About These Changes?

Farmer sentiment varies. In some regions, farmers are optimistic after a strong harvest. However, others, particularly in the eastern counties, have faced tougher conditions. The livestock sector is experiencing turbulence, particularly for poultry and pig farmers. Environmental schemes offer a degree of financial certainty, especially for unproductive areas of land that can now generate income.

How Are Farms Transitioning to More Sustainable Practices?

We’re seeing a new focus on soil health through the Sustainable Farming Incentive (SFI). For the first time, soil management is a central part of farm policy, addressing key threats such as erosion, compaction, and declining organic matter. This focus is essential for both environmental goals and long-term farm productivity.

What Are the Key Legislation Pillars Impacting Farmers?

Post-Brexit, the UK is unwinding EU regulations and shaping its own agricultural policy. The Agricultural Act sets out the framework for farm funding, while the Environment Act is the overarching legislation driving environmental objectives. Farmers manage 75-85% of the UK’s land, making them central to achieving national environmental targets.

How Do Elms and SFI Fit Together?

ELMS is replacing Countryside Stewardship and will be the primary funding source for farming. By 2028, Basic Payment Scheme (BPS) support will be phased out, leaving ELMS as the only direct funding mechanism. SFI is embedded within ELMS and provides payments for sustainable land management practices.

What Are the Financial Benefits of Sustainable Farming Practices?

Yes. Rising fertiliser costs have pushed farmers to explore alternative nutrition sources. More farms are using organic matter effectively, reducing reliance on synthetic fertilisers. Cover cropping is also gaining traction, providing additional income and agronomic benefits. While financial gains may take time to materialise, long-term resilience and cost reductions make these practices worthwhile.

What Should Farmers Be Considering Now?

The most immediate opportunity is signing up for SFI schemes related to soil management. Payments vary depending on farm size and level of engagement, but for larger farms, the benefits can be significant. It’s a relatively simple application process, and funding is readily available.

How Can Farmers Stay Updated?

Farm meetings and in-person events are invaluable for exchanging ideas and learning from others. These discussions provide insights into how different schemes can be tailored to individual farms. Engaging with trusted advisors and agricultural networks is also key to staying ahead of policy changes.

Final Thoughts

Farming is undergoing major shifts, and understanding financial resilience is more important than ever. Farmers should explore available schemes early, integrate sustainability into their long-term strategies, and take advantage of every opportunity to secure additional income.

For more expert insights, join us at upcoming Agrii farm meetings and stay tuned for future episodes of the Tramlines podcast.

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