Will Defra's new Sustainable Farming Incentive ease farmers’ transition away from subsidies?

Abstract

The new Sustainable Farming Incentive is likely to only provide a small financial benefit for farmers as it is currently designed. Indeed, some standards within the pilot scheme were found to have a negative impact on business profitability, where farms had to take land out of production to meet Defra's requirements. It is clear that the Sustainable Farming Incentive will not replace income received through Direct Payments, even for those most efficient at producing environmental goods, so it is important that farmers consider the Sustainable Farming Incentive within a wider review of their business in order to ensure they remain profitable throughout the agricultural transition period and beyond