Steve Reed shares update on ELMS and SFI at Groundswell
4th July 2025
During his speech at Groundswell, environment secretary Steve Reed told farmers that restoring nature is “central to the government’s approach”, however, the NFU said updates to SFI still “lack clarity”.
Speaking at Groundswell, the environment secretary reminded attendees that Environmental Land Management schemes will increase by 150% to £2 billion by 2029, and a further £400 million will be available from other nature schemes, including projects for tree planting and peatland restoration.
“This is the biggest financial investment in nature-friendly farming in our country’s history.
“Take a moment to compare this to 2017, when Groundswell first started. Back then, £350 million was invested into ELMs’ predecessor.
“Thanks to your efforts, nature-friendly farming has come a very long way in the past nine years. There are now over 39,000 SFI agreements producing fantastic results for nature. That’s something to celebrate,” he said.
‘Budgets can’t be unlimited’
Discussing the SFI, Mr Reed said the government cannot keep spending money over the budget.
“Once you’ve spent a budget, you can’t keep spending it or you damage the economy, and we’re not doing that.
“Those farmers who missed out at the time the scheme closed to new applicants will be able to make claims once it reopens. But budgets can’t be unlimited, so we need to make sure we focus that public money where it’s going to make the biggest impact,” he said.
Mr Reed confirmed that more details of our reformed SFI offer will be provided later this summer.
“We are working with farmers to shape the scheme, which will start accepting applications in the new year,” he added.
Defra has also confirmed that the SFI 2024 will reopen to eligible participants from midday on 7th July. Farmers will only be able to apply for the reopened group if they were one of the exception groups previously announced by Defra.
‘Clarity is needed’
Responding, the NFU urged DEFRA to ensure that the updated Sustainable Farming Incentive (SFI) scheme works for all farmers.
NFU deputy president David Exwood said: “It’s encouraging to hear the DEFRA secretary reaffirm his commitment to ELMs and the principle of rewarding farmers for the public goods they deliver for the environment while producing food for the nation.
“SFI was always meant to be a simple, accessible scheme that supports work to improve the environment alongside food production. We will continue to engage with DEFRA to discuss how this can be achieved, provided there is openness and transparency.”
Mr Exwood added that the choice and flexibility in the SFI worked for farmers, and so any discussion about targeting and packaging must be based on clear evidence.
“While the DEFRA secretary’s remarks are broad, they lack the clarity needed as cashflow pressures mount and direct payments rapidly decline. Farmers now need to see detail on the future shape of SFI so they can better understand how it will work for them.
“We firmly share DEFRA’s ambition to support profitable and sustainable farm businesses. Achieving that goal depends on making the SFI scheme work for all farmers, regardless of size, sector, or location. If the aim is for SFI to help farming deliver environmental benefits, then excluding large areas of English farmland from the scheme would be counterproductive,” he concluded.
READ MORE: £100m cuts announced: ‘Farmers will need to do more with less’
READ MORE: DEFRA criticised for sharp fall in delinked payments
Groundswell’s special guest
Groundswell 2025 was also attended by the Prince of Wales who offered British farmers his “respect and encouragement”.
He told the visitors: that farmers have a “huge role to play”, however, they cannot do it alone. He noted that the country also needs to rely on retailers, food manufacturers, and the general public.
“As consumers, we must re-educate ourselves on what we eat, where it comes from, and the true cost of its production,” the Duke of Cornwall added.
Prince William highlighted that farming “is not simply the act of growing food, it is much bigger than that”.
“It is the stewardship of the land, the health of our soils, the purity of our water, and the resilience of our rural society in harmony with nature.”
READ MORE: Prince William pays respects to British farmers during Groundswell event
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