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This section contains mandatory scheme requirements.

This information explains what you must do to get paid for your Sustainable Farming Incentive (SFI) agreement, how well calculate your payment, when youll be paid and submitting an annual declaration.

What you must do to get paid

To get paid for your SFI agreement, you must:

• complete the SFI actions youve chosen for each 12-month period from the start date of your SFI agreement (the agreement year)
• submit an annual declaration to confirm youve complied with the mandatory scheme requirements under your SFI agreement for the relevant agreement year
• supply evidence specified in the SFI scheme information on eligibility of land for an SFI agreement, about your SFI agreement and payments, and the SFI actions when we ask for it

You will not be paid for actions youre already required to do by law.

How well calculate your payment

Your SFI agreements total annual payment will be based on:

• the area of eligible land (in hectares) you enter into area-based SFI actions
• the length of eligible hedgerows (in metres) you enter into the SFI actions for hedgerows
• the additional agreement payment for SAM1 (assess soil, test soil organic matter (SOM) and produce a soil management plan) and MOR1 (assess moorland and produce a written record)
• any agreement level SFI actions you choose these are IPM1 (assess integrated pest management and produce a plan) and NUM1 (assess nutrient management and produce a review report)
• the SFI management payment, which is explained in more detail below
• the additional annual payment for common land of 6.15 per hectare if a group of 2 or more people apply for an SFI agreement on common land

Read the details of the SFI actions to find out what the payment rate is for each SFI action.

SFI management payment

In 2023, were introducing an additional, annual SFI management payment. This is to recognise the management and administrative costs for farmers entering into and managing an SFI agreement.

The SFI management payment will be 20 per hectare per year, for up to the first 50 hectares entered into your SFI agreement. The maximum SFI management payment will be 1,000 per year for each farm business (Single Business Identifier (SBI)).

The SFI management payment will be based on the area, up to 50 hectares, you enter into all the land-based SFI actions in your SFI agreement, including the action to assess moorland (MOR1) and the actions for hedgerows. Well calculate a notional area based on the length of hedgerows entered into the hedgerow actions.

It will not apply to agreement-level actions (IPM1 and NUM1). This is because they are completed by an adviser and the payment rate for these actions already covers the management costs involved. They also do not require you to enter a hectarage into your SFI agreement.

If a farm business (SBI) has more than one SFI agreement, well calculate and pay the SFI management payment for the area, up to 50 hectares, entered into SFI actions in the live SFI agreement which started first.

If you enter less than 50 hectares into the relevant live SFI agreement, youll be able to add eligible land, and SFI actions, to that agreement at your annual upgrade point. Read the information about requesting changes to your SFI agreement. If you do this, the SFI management payment will be based on the increased area of land, up to 50 hectares, from the start of the agreement year when your updated agreement takes effect.

If you tell us that you cannot comply with your SFI agreement and whats happened means land is removed from your agreement, this may affect your SFI management payment.

When your SFI agreement starts, the SFI management payment will be included in the quarterly instalments of your total annual payment.

Well keep the SFI management payment under review as we rollout SFI.

When youll be paid

Your total annual payment is divided into 4 equal instalments and paid on a quarterly basis. The first quarterly instalment will usually be made in the fourth month after the start date of your SFI agreement.

Unlike other schemes, such as Countryside Stewardship (CS), you do not need to claim your payment. Well usually pay your quarterly instalments automatically, directly via BACS transfer to your registered bank or building society account thats registered with us.

Your SFI payment statement

Your SFI payment statement will usually be emailed to you a few days before you get paid. The payment statement tells you:

• how much youll be paid
• the payment date
• how we calculated your payment

Submitting an annual declaration

You must submit an annual declaration to confirm youve complied, or expect to have complied, with the mandatory scheme requirements under your SFI agreement for the relevant agreement year.

This allows us to pay you the final quarterly instalment of your annual payment for the relevant agreement year.

Read the information about checking youre complying with your SFI agreement.

How and when to submit an annual declaration

Each year of your 3-year SFI agreement, you must submit your annual declaration during the last 2 months of the relevant agreement year (the annual declaration period).

Youll submit your annual declaration online in the Rural Payments service.

The timing of your annual declaration period will depend on your SFI agreements start date. Well tell you when your annual declaration is available to complete.

If you do not submit your annual declaration by the end of the relevant agreement year, we may be unable to make the final quarterly instalment of your annual payment. We may also withhold your other payments or recover payments, and your agreement may be ended.

SFI payment principles

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