Ed Metcalfe (FCG WhiteAvon)

Farming has always been a demanding industry, with market prices largely dictated by external forces. The recent changes in government policy have added yet another layer of uncertainty and pressure for farmers across the country.

For many years, environmental schemes have played a crucial role in supporting farm incomes. However, as DEFRA works to shape the next generation of schemes, much of this support has been temporarily paused — leaving many farmers in a difficult position.

Over 5,000 farms entered Mid-Tier Countryside Stewardship (CS) agreements in 2021, which were originally due to end in December 2025.  When joining these schemes, farmers understandably aimed to maximise income while keeping their options workable within their existing farm enterprises.  In some cases, this meant putting large areas of land into options such as herbal leys and low-input grassland.

However, this approach has had a knock-on effect.  When the Sustainable Farming Incentive (SFI) became available, many of these farms found themselves limited in what new SFI options they could add.  As a result, many opted only for the most accessible options — such as soil sampling, nutrient management planning, pesticide management planning, and hedgerow options.

For those whose Stewardship agreements were due to end this year, this meant a sudden loss of environmental income — with little clarity on what, if anything, would replace it.

Thankfully, there is now some positive news.  DEFRA has announced a one-year extension for eligible 2021 Mid-Tier Countryside Stewardship agreements.  This means that agreements due to finish in December 2025 will now continue until December 2026, allowing farmers to retain their environmental payments for an additional year.

The Rural Payments Agency (RPA) will contact eligible agreement holders directly by email.  It’s important to note that this message will go to the main business email address, not to any agent linked to your RPA account.  If you would like a consultant or adviser to handle the extension process on your behalf, make sure they are aware of your eligibility email.

Most importantly, this extension provides some much-needed breathing space for farmers facing the financial uncertainty of expiring agreements.  The hope is that by summer 2026, a new and improved SFI scheme will be launched — giving farmers time to plan ahead for the next stage of environmental support.

If you would like to discuss environmental schemes for your farm, please contact Ed at  edmetcalfe@fcgagric.com or your local FCG Office.