How an SFI standards agreement interacts with other funding schemes

This information explains the interaction between land entered into a Sustainable Farming Incentive (SFI) standards agreement and other schemes, as well as other funding sources.

Existing schemes will continue to run alongside SFI, such as:

• Basic Payment Scheme (BPS), until it is delinked in 2024
• Countryside Stewardship (CS)
• Environmental Stewardship

By the end of 2024, new schemes will also be launched, including:

• Local Nature Recovery
• Landscape Recovery

Including land in an SFI standards agreement and other schemes at the same time

It’s possible to include the same land in an SFI standards agreement and another scheme if:

• you and your land are eligible for each scheme
• the activities or outcomes you’re being paid for under each scheme are compatible
• you are not being paid for a similar activity or outcome on the same area of land at the same time (known as double funding)

Basic Payment Scheme

You can include the same land parcel in a BPS application and your SFI standards agreement, as long as it’s eligible for each scheme.

If you apply for the Lump Sum Exit Scheme in 2022, you should not apply for an SFI standards agreement. If you decide to withdraw your Lump Sum Exit Scheme application, you can then apply for an SFI standards agreement.

Countryside Stewardship

The interaction between an SFI standards agreement and CS is different depending on whether there’s a revenue option or capital items funding.

CS revenue options

If land used for a CS revenue option has an eligible land cover and is an eligible land type for the standard you choose, you can enter it into an SFI standards agreement if:

• the CS actions, including their timing, are compatible with the actions in the standard you choose
• you won’t be paid twice for a similar activity or outcome on the same area of land at the same time (known as double funding)

If this is not the case, the ineligible CS revenue option land, including any land currently used for an ineligible rotational CS revenue option, cannot:

• be entered into an SFI standards agreement
• be used to complete any of the actions in the SFI standards

For example, you cannot enter:

• an area of land used to establish a cover crop under CS into the arable and horticultural soils standard, or use it to meet the actions in that standard
• an area of land used for a CS grass buffer strip on an improved grassland parcel into the improved grassland soils standard, or use it to meet the actions in that standard

The standard you choose affects which CS revenue options are compatible and do not lead to double funding.

CS revenue options and the moorland standard

Land used for all CS revenue options can be entered into the introductory level of the moorland standard, if it has an eligible land cover and is an eligible land type.

This is because the introductory level of the moorland standard does not involve physical land management actions, so there is no incompatibility or double funding.

CS revenue options and the soils standards

You can enter land used for certain CS revenue options into the introductory and intermediate levels in the arable and horticultural soils standard or the improved grassland soils standard in 2022.

These eligible CS revenue options are set out in tables 1 and 2.

Table 1. Eligible CS revenue options for the arable and horticultural soils standard

CS revenue option
ED1: Educational access
BE3: Management of hedgerows
SP10: Administration of group managed agreements supplement
AB5: Nesting plots for lapwing
AB11: Cultivated areas for arable plants
AB14: Harvested low input cereal
AB12: Supplementary winter feeding for farmland birds
SP9: Threatened species supplement
OP3: Supplementary feeding for farmland birds
OT3: Organic land management – rotational land
OT4: Organic land management – horticulture
OR3: Organic conversion - rotational land
OR4: Organic conversion – horticulture
HS3: Reduced-depth, non-inversion cultivation on historic and archaeological features
HS9: Restricted depth crop establishment to protect archaeology under an arable rotation

Table 2. Eligible CS revenue options for the improved grassland soils standard

CS revenue option
SW10: Seasonal livestock removal on intensive grassland in SDAs next to streams, rivers and lakes
BE3: Management of hedgerows
BE6: Veteran tree surgery
BE7: Supplement for restorative pruning of fruit trees
ED1: Educational access
OT1: Organic land management - improved permanent grassland
OT3: Organic land management - rotational land
SP10: Administration of group managed agreements supplement
OR1: Organic conversion - improved permanent grassland
SW9: Seasonal livestock removal on intensive grassland
SP7: Introduction of cattle grazing on Isles of Scilly

If you use an area of a land parcel for a CS revenue option not listed in tables 1 and 2 above, that area cannot be entered into the soils standards.

However, you can enter the rest of the land parcel not covered by an ineligible CS revenue option into either of the soils standards (if it’s eligible land for the chosen standard).

For example, if part of a land parcel is used for a CS grass buffer strip, you can enter the rest of the area into either of the soils standards.

Rotational CS revenue options

A rotational CS revenue option is a multi-annual land management option that can be moved around identified land parcels in your CS agreement.

Each year of your CS agreement, you declare the area currently used for a rotational CS option. You do this either:

• on the CS annual revenue claim, usually submitted by 15 May each year
• by 1 September in the relevant year if you cannot declare its location on the CS annual revenue claim

Any area within a land parcel that’s currently used for an ineligible rotational CS revenue option cannot be entered into the soils standards.

You can enter the rest of the land parcel not covered by an ineligible rotational CS revenue option into either of the soils standards (if it’s eligible land for the chosen standard).

The area currently used for an ineligible rotational CS revenue option will be automatically removed from the ‘available area’ in your SFI application. This means the total area entered into your SFI standards agreement does not include the area currently used for an ineligible rotational CS revenue option.

Once your SFI standards agreement has started, the ineligible rotational CS revenue option area can be moved around the land parcels in your agreement. This is because we’ve already removed that area from your SFI application. However, this is only possible if the area of the ineligible rotational CS revenue option does not exceed the area automatically removed from the ‘available area’ in your SFI application.

For example, a land parcel currently includes 2 hectares (ha) of SW6. That area is automatically removed from that land parcel in your SFI application. Once your SFI standards agreement has started, you can move that 2ha of SW6 around the land parcels in your agreement. However, if the area of SW6 increases to 2.5ha in either the second or third year of your SFI standards agreement, you’ll need to add land to your SFI standards agreement at the annual upgrade point to accommodate the additional 0.5ha.

Applying for an SFI standards agreement if you have an existing CS agreement

If you have an existing CS agreement, we will automatically remove the area of ineligible CS revenue options from the affected land parcels in your SFI application. This includes any area currently used for ineligible rotational CS revenue options.

This means the area is not included in the affected land parcel’s ‘available area’ for you to select in your SFI application. For example, if there is a 10ha land parcel which has 2 ha of AB2 (Basic overwinter stubble), the ‘available area’ in your SFI application will be 8 ha.

Applying for an SFI standards agreement and CS in 2022

You may be applying for a CS Higher Tier or Mid Tier (including the Wildlife Offers) agreement starting from 1 January 2023. This may affect your SFI application if you include the same area of land in both CS and SFI.

If you submit your CS application and receive your CS agreement offer before you apply for SFI, any area of ineligible CS revenue options can be confirmed before you apply for SFI.

In this case, we will automatically remove the area of ineligible CS revenue options from the affected land parcels in your SFI application. This includes any area currently used for ineligible rotational CS revenue options.

This means the area isn’t included in the affected land parcel’s ‘available area’ for you to select in your SFI application.

However, if the area of ineligible CS revenue options cannot be confirmed, it won’t be possible to automatically remove it from your SFI application. This will be the case if you apply for SFI before you submit your CS application.

This means the area of ineligible CS revenue options is included in the affected land parcel’s ‘available area’ in your SFI application. You can only enter the total ‘available area’ into the standard you choose. It cannot be reduced in your SFI application to remove the area of ineligible CS revenue options.

If you enter the same area of land into both an SFI soils standard and an ineligible CS revenue option in a CS agreement that starts from 1 January 2023, your SFI payment will be automatically adjusted.

For example, you enter a 10 ha land parcel into one of the soils standards and include that same land parcel in your CS application. You have only included 1 ha of this land parcel in your CS application, but it’s in an ineligible CS revenue option for the SFI soils standard you have chosen. If your CS agreement starts after your SFI standards agreement, you will only be eligible for an SFI payment on 9 ha of that land parcel.

CS capital items funding

If you apply for a CS Capital Grants agreement, the same land parcel can be entered into an SFI standards agreement.

Environmental Stewardship

If land used for an Environmental Stewardship (ES) revenue option has an eligible land cover and is an eligible land type for the standard you choose, you can enter it into an SFI standards agreement if:

• the ES actions, including their timing, are compatible with the actions in the standard you choose
• you won’t be paid twice for a similar activity or outcome on the same area of land at the same time (known as double funding)

If this is not the case, the ineligible ES revenue option land, including any land currently used for an ineligible rotational ES revenue option, cannot be:

• entered into an SFI standards agreement
• used to complete any of the actions in the SFI standards

For example, you cannot enter an area of land:

• used to establish a cover crop under ES into the arable and horticultural soils standard, or use it to meet the actions in that standard
• used for an ES grass buffer strip on an improved grassland parcel into the improved grassland soils standard, or use it to meet the actions in that standard

The standard you choose affects which ES revenue options are compatible and do not lead to double funding.

ES revenue options and the moorland standard

Land used for ES revenue options can be entered into the introductory level of the moorland standard if it has an eligible land cover and is an eligible land type.

This is because the introductory level of the moorland standard does not involve physical land management actions, so there is no incompatibility or double funding.

ES revenue options and the soils standards

You can enter land used for certain ES revenue options into the introductory and intermediate levels in the arable and horticultural soils standard or the improved grassland soils standard in 2022.

These eligible ES revenue options are set out in tables 3 and 4.

Table 3. Eligible ES revenue options for the arable and horticultural soils standard

ES revenue option
HD6: Crop establishment by direct drilling (non-rotational)
HF20: Cultivated fallow plots or margins for arable plants
HG7: Low input spring cereal to retain or re-create an arable mosaic
HJ11: Maintenance of watercourse fencing
HB11: Maintenance of hedges of very high environmental value (2 sides)
HB12: Maintenance of hedges of very high environmental value (1 side)
OU1: Organic Management
HD3: Low depth, non-inversion cultivation on archaeological features
OHD3: Low depth, non-inversion cultivation on archaeological features
ED3: Low depth, non-inversion cultivation on archaeological features
OD3: Low depth, non-inversion cultivation on archaeological features
HR6: Supplement for small fields
EF11: Uncropped, cultivated margins for rare plants on arable land
UOX2: Grassland and arable
UX2: Grassland and arable
EB1: Hedgerow management for landscape (on both sides of a hedge)
EB10: Combined hedge and ditch management (incorporating EB3)
EB11: Stone wall protection and maintenance
EB12: Earth bank management (on both sides)
EB13: Earth bank management (on one side)
EB14: Hedgerow restoration
EB2: Hedgerow management for landscape (on one side of a hedge)
EB3: Hedgerow management for landscape and wildlife
EB4: Stone faced hedge bank management on both sides
EB5: Stone faced hedge bank management on one side
EB6: Ditch management
EB7: Half ditch management
EB8: Combined hedge and ditch management (incorporating EB1)
EB9: Combined hedge and ditch management (incorporating EB2)
EC23: Establishment of hedgerow trees by tagging
EC3: Maintenance of woodland fences
EF23: Supplementary feeding in winter for farmland birds
EG1: Under sown spring cereals
EJ10: Enhanced management of maize crops to reduce erosion and run-off
EJ11: Maintenance of watercourse fencing
HF20NR: Cultivated fallow plots or margins for arable plants
HF24: Supplementary feeding in winter for farmland birds
HG1: Undersown spring cereals
HG7NR: Low input spring cereal to retain or re-create an arable mosaic
HJ10: Enhanced management of maize crops to reduce erosion and run-off
HN8: Educational access - base payment
HN8CW: Educational access - base payment
HN9: Educational access - payment per visit
HN9CW: Educational access - payment per visit
ILC: Improved land  conversion payment
OB1: Hedgerow management for landscape (on both sides of a hedge)
OB10: Combined hedge and ditch management (incorporating OB3)
OB11: Stonewall protection and maintenance
OB12: Earth bank management (on both sides)
OB13: Earth bank management (on one side)
OB14: Hedgerow restoration
OB2: Hedgerow management for landscape (on one side of a hedge)
OB3: Hedgerow management for landscape and wildlife
OB4: Stone faced Hedge bank management on both sides
OB5: Stone faced Hedge bank management on one side
OB6: Ditch management
OB7: Half ditch management
OB8: Combined hedge and ditch management (incorporating OB1)
OB9: Combined hedge and ditch management (incorporating OB2)
OC3: Maintenance of woodland fences
OF23: Supplementary feeding in winter for farmland birds
OG1: Under sown spring cereals
OHG1: Undersown spring cereals
OHJ11: Maintenance of watercourse fencing
OJ11: Maintenance of watercourse fencing
UB11: Stone wall protection and maintenance on/above the moorland line
UB12: Earth bank management (both sides) on/above the moorland line
UB13: Earth bank management (one side) on/above the moorland line
UB14: Hedgerow restoration
UB17: Stone wall restoration
UB4: Stone-faced hedgebank management (both sides) on or above ML
UB5: Stone-faced hedgebank management (one side) on or above ML
UC5: Sheep fencing around small woodlands
UJ3: Post and wire fencing along watercourses
UOB11: Stone wall protection and maintenance on/above the moorland line
UOB14: Hedgerow restoration
UOB17: Stone wall restoration
UOB4: Stone-faced hedgebank management (both sides) on/above ML
UOC5: Sheep fencing around small woodlands
UOJ3: Post and wire fencing along watercourses

Table 4. Eligible ES revenue options for the improved grassland soils standard

ES revenue option
HQ13: Inundation grassland supplement
HIOS1: Landscape management
HIOS2: Management of rare arable bulb/flora
UD13: Maintaining visibility of archaeological features on moorland
UHD13: Maintaining visibility of archaeological features on moorland
UOD13: Maintaining visibility of archaeological features on moorland
HJ11: Maintenance of watercourse fencing
HB11: Maintenance of hedges of very high environmental value (2 sides)
HB12: Maintenance of hedges of very high environmental value (1 side)
EK5: Mixed stocking
HK5: Mixed stocking
OHK5: Mixed stocking
OK5: Mixed stocking
UX1: Commons and shared grazing
HJ8: Nil fertiliser supplement
OU1: Organic Management
HL15: Seasonal livestock exclusion supplement
HJ7: Seasonal livestock removal from intensively managed grassland
HL16: Shepherding supplement
HR7: Supplement for difficult sites
UOX2: Grassland and arable
UX2: Grassland and arable
UHJ12: Winter livestock removal next to streams, rivers and lakes
UJ12: Winter livestock removal next to streams, rivers and lakes
UOJ12: Winter livestock removal next to streams, rivers and lakes
EB1: Hedgerow management for landscape (on both sides of a hedge)
EB10: Combined hedge and ditch management (incorporating EB3)
EB11: Stone wall protection and maintenance
EB12: Earth bank management (on both sides)
EB13: Earth bank management (on one side)
EB14: Hedgerow restoration
EB2: Hedgerow management for landscape (on one side of a hedge)
EB3: Hedgerow management for landscape and wildlife
EB4: Stone faced hedge bank management on both sides
EB5: Stone faced hedge bank management on one side
EB6: Ditch management
EB7: Half ditch management
EB8: Combined hedge and ditch management (incorporating EB1)
EB9: Combined hedge and ditch management (incorporating EB2)
EC23: Establishment of hedgerow trees by tagging
EC3: Maintenance of woodland fences
EC4: Management of woodland edges
EF23: Supplementary feeding in winter for farmland birds
EJ10: Enhanced management of maize crops to reduce erosion and run-off
I EJ11: Maintenance of watercourse fencing
HF24: Supplementary feeding in winter for farmland birds
HJ10: Enhanced management of maize crops to reduce erosion and run-off
HN8: Educational access - base payment
HN8CW: Educational access - base payment
HN9: Educational access - payment per visit
HN9CW: Educational access - payment per visit
ILC: Improved land  conversion payment
OB1: Hedgerow management for landscape (on both sides of a hedge)
OB10: Combined hedge and ditch management (incorporating OB3)
OB11: Stonewall protection and maintenance
OB12: Earth bank management (on both sides)
OB13: Earth bank management (on one side)
OB14: Hedgerow restoration
OB2: Hedgerow management for landscape (on one side of a hedge)
OB3: Hedgerow management for landscape and wildlife
OB4: Stone faced Hedge bank management on both sides
OB5: Stone faced Hedge bank management on one side
OB6: Ditch management
OB7: Half ditch management
OB8: Combined hedge and ditch management (incorporating OB1)
OB9: Combined hedge and ditch management (incorporating OB2)
OC3: Maintenance of woodland fences
OF23: Supplementary feeding in winter for farmland birds
OHJ11: Maintenance of watercourse fencing
OJ11: Maintenance of watercourse fencing
UB11: Stone wall protection and maintenance on/above the moorland line
UB12: Earth bank management (both sides) on/above the moorland line
UB13: Earth bank management (one side) on/above the moorland line
UB14: Hedgerow restoration
UB17: Stone wall restoration
UB4: Stone-faced hedgebank management (both sides) on/above ML
UB5: Stone-faced hedgebank management (one side) on/above ML
UC5: Sheep fencing around small woodlands
UJ3: Post and wire fencing along watercourses
UOB11: Stone wall protection and maintenance on/above the moorland line
UOB14: Hedgerow restoration
UOB17: Stone wall restoration
UOB4: Stone-faced hedgebank management (both sides) on/above ML
UOC5: Sheep fencing around small woodlands
UOJ3: Post and wire fencing along watercourses

Rotational ES revenue options

A rotational ES revenue option is a multi-annual land management option that can be moved around identified land parcels in your ES agreement.

Each year of your ES agreement, you declare the area currently used for a rotational ES option. You do this either:

• on the ES annual revenue claim, usually submitted by 15 May each year
• by 1 September in the relevant year if you cannot declare its location on the ES annual revenue claim

Any area within a land parcel that’s currently used for an ineligible rotational ES revenue option cannot be entered into the soils standards.

The area currently used for an ineligible rotational ES revenue option will not be automatically removed from the ‘available area’ in your SFI application. This is because that ES agreement information is held on a separate system. Instead, we will manually remove that area after you’ve submitted your SFI application.

Once your SFI standards agreement has started, the ineligible rotational ES revenue option area can be moved around the land parcels in your agreement. This is because we’ve already removed that area from your SFI application. However, this is only possible if the area of the ineligible rotational ES revenue option does not exceed the area we’ve removed from the ‘available area’ in your SFI application.

Applying for an SFI standards agreement if you have an existing ES agreement

If you have an existing ES agreement, we will automatically remove the area of ineligible non-rotational ES revenue options from the affected land parcels in your SFI application. However, we cannot automatically remove the area currently used for an ineligible rotational ES revenue option, because that ES agreement information is held on a separate system.

If you’re applying for SFI on land that’s currently used for an ineligible rotational ES revenue option , you’ll need to submit your SFI application including that area. We will then manually reduce the ‘available area’ to remove the area currently used for an ineligible rotational ES revenue option. We will contact you to confirm the revised ‘available area’ in the affected land parcel before we offer you an SFI standards agreement.

Sustainable Farming Incentive pilot

Land parcels already in a Sustainable Farming Incentive pilot standards agreement cannot be entered into your SFI standards agreement.

Local Nature Recovery

Local Nature Recovery (LNR) is expected to launch by the end of 2024. You’ll be able to apply for LNR options on land entered into an SFI standards agreement, as long as the eligibility and compatibility requirements are met and there’s no double funding.

The LNR options will initially cover the following themes:

• managing feeding, shelter and breeding areas for wildlife on arable farms
• managing, restoring and creating grassland habitats such as species-rich grassland on farms and in the wider countryside
• managing, restoring and creating wetland habitats such as ponds, lakes, reedbeds and fens
• managing, restoring and creating lowland heathland
• managing, restoring and creating coastal habitats such as sand dunes, salt marsh and shingle
• managing and restoring areas of upland and lowland peat and moorland on farms and in the wider countryside
• targeted measures to support the recovery and reintroduction of particular wildlife species, such as creating and managing nesting and feeding habitat, and to tackle non-native invasive species
• managing and creating trees and woodlands, including agroforestry, traditional orchards and tree planting on areas of farms (the England Woodland Creation Offer will be the main scheme for creating woodland until 2025)
• nature-based solutions for water, such as creating and managing in-field vegetation, buffer strips and swales to reduce and filter runoff and contribute to natural flood management
• restoring rivers, flood plains, streams and riparian habitats

More LNR guidance will be published on GOV.UK over the next year.

Landscape Recovery

You can apply for Landscape Recovery on land entered into an SFI standards agreement, as long as the eligibility and compatibility requirements are met and there’s no double funding.

Farming in Protected Landscapes

If you have land in a National Park Authority or Area of Outstanding Natural Beauty (AONB) you can apply for Farming in Protected Landscapes funding and enter that same land into an SFI standards agreement, as long as the eligibility and compatibility requirements are met and there’s no double funding.

Private sector schemes

In 2022, you can enter the same area of land into an SFI standards agreement and a private sector scheme arrangement, such as carbon trading or payments for natural flood management.

The approach to private sector schemes will be reviewed by Defra annually.