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Can you combine SFI payments with income from BNG? Yes—if you’re careful. This article explains how stacking works, what Defra’s rules say, and how to avoid double funding when managing land for both schemes.
As more landowners start exploring the Biodiversity Net Gain (BNG) market, one question keeps cropping up—especially among those already signed up to the Sustainable Farming Incentive (SFI): Can I receive SFI payments and still sell biodiversity units from the same land?
It’s a fair question—and a vital one. After all, stacking payments from different schemes could be a powerful way to diversify income, especially if you’re managing land with nature in mind. The good news is that yes, stacking is possible—but only when it’s done with care.
Let’s break down how it works.
Stacking, in this context, simply means claiming two or more environmental payments on the same parcel of land. So, for example, you might be managing a strip of herbal ley through SFI—and at the same time enhancing a nearby corner of your field into species-rich grassland that generates BNG units.
That’s stacking. And while it sounds like a no-brainer, Defra’s rules are crystal clear: you can’t be paid twice for doing the same thing.
This is known as "double funding", and it’s something both Defra and local planning authorities will be watching closely.
It all comes down to difference—difference in what’s being done, and difference in what outcomes are being funded.
Let’s say your SFI agreement covers low-input grassland management on a 10-hectare field. If you choose to take just one hectare of that land, restore it into species-rich meadow habitat, and register it as a biodiversity gain site—that might be acceptable. Why? Because you’re delivering a distinctly different outcome in that corner: creating a habitat that meets a higher ecological standard, with long-term management secured under BNG.
On the other hand, if you’re getting paid under SFI to manage the entire field as species-rich grassland already, and then try to sell BNG units from that same parcel for the same habitat type—you’ll likely fall foul of the rules. That would be double funding.
This is where clear mapping, good record-keeping, and honest assessments become essential.
Sometimes, it’s not black and white. For instance, hedgerow management under SFI might sit alongside wider biodiversity actions under BNG. If those actions are separate—say, the hedge is funded by SFI and a nearby wetland is generating BNG units—then stacking is likely fine.
But if you’re trying to enhance the same habitat in overlapping ways with different pots of funding, things can get messy. Defra and Natural England want to see clear evidence that each scheme delivers additionality—that is, more environmental value than would have happened otherwise.
The safest route is to plan ahead. Before registering a site for BNG or agreeing to sell units, take a close look at your SFI agreement. Identify which fields or features are under which actions. If you’re thinking of creating a new habitat, ask yourself: is this action already being paid for?
If not, and the new action goes beyond your current SFI commitments—you might be in the clear to stack.
And if you’re not sure, don’t guess. At AskGrant, we’ve seen how easy it is to trip over these rules when the paperwork piles up. A quick check now can save a lot of hassle down the road.
Stacking BNG and SFI can make environmental management more financially viable—particularly on awkward corners of land that don’t fit neatly into crops or grazing. But it also means playing by the rules, especially as more scrutiny comes with public money and private markets mixing.
Done right, stacking turns nature recovery into a sustainable land strategy. Done wrong, it could mean clawbacks, audits, and lost trust with buyers or funders.
So be savvy, get advice, and keep those maps and plans watertight.
Can you combine SFI payments with income from BNG? Yes—if you’re careful. This article explains how stacking works, what Defra’s rules say, and how to avoid double funding when managing land for both schemes.
As more landowners start exploring the Biodiversity Net Gain (BNG) market, one question keeps cropping up—especially among those already signed up to the Sustainable Farming Incentive (SFI): Can I receive SFI payments and still sell biodiversity units from the same land?
It’s a fair question—and a vital one. After all, stacking payments from different schemes could be a powerful way to diversify income, especially if you’re managing land with nature in mind. The good news is that yes, stacking is possible—but only when it’s done with care.
Let’s break down how it works.
Stacking, in this context, simply means claiming two or more environmental payments on the same parcel of land. So, for example, you might be managing a strip of herbal ley through SFI—and at the same time enhancing a nearby corner of your field into species-rich grassland that generates BNG units.
That’s stacking. And while it sounds like a no-brainer, Defra’s rules are crystal clear: you can’t be paid twice for doing the same thing.
This is known as "double funding", and it’s something both Defra and local planning authorities will be watching closely.
It all comes down to difference—difference in what’s being done, and difference in what outcomes are being funded.
Let’s say your SFI agreement covers low-input grassland management on a 10-hectare field. If you choose to take just one hectare of that land, restore it into species-rich meadow habitat, and register it as a biodiversity gain site—that might be acceptable. Why? Because you’re delivering a distinctly different outcome in that corner: creating a habitat that meets a higher ecological standard, with long-term management secured under BNG.
On the other hand, if you’re getting paid under SFI to manage the entire field as species-rich grassland already, and then try to sell BNG units from that same parcel for the same habitat type—you’ll likely fall foul of the rules. That would be double funding.
This is where clear mapping, good record-keeping, and honest assessments become essential.
Sometimes, it’s not black and white. For instance, hedgerow management under SFI might sit alongside wider biodiversity actions under BNG. If those actions are separate—say, the hedge is funded by SFI and a nearby wetland is generating BNG units—then stacking is likely fine.
But if you’re trying to enhance the same habitat in overlapping ways with different pots of funding, things can get messy. Defra and Natural England want to see clear evidence that each scheme delivers additionality—that is, more environmental value than would have happened otherwise.
The safest route is to plan ahead. Before registering a site for BNG or agreeing to sell units, take a close look at your SFI agreement. Identify which fields or features are under which actions. If you’re thinking of creating a new habitat, ask yourself: is this action already being paid for?
If not, and the new action goes beyond your current SFI commitments—you might be in the clear to stack.
And if you’re not sure, don’t guess. At AskGrant, we’ve seen how easy it is to trip over these rules when the paperwork piles up. A quick check now can save a lot of hassle down the road.
Stacking BNG and SFI can make environmental management more financially viable—particularly on awkward corners of land that don’t fit neatly into crops or grazing. But it also means playing by the rules, especially as more scrutiny comes with public money and private markets mixing.
Done right, stacking turns nature recovery into a sustainable land strategy. Done wrong, it could mean clawbacks, audits, and lost trust with buyers or funders.
So be savvy, get advice, and keep those maps and plans watertight.
