Combining SFI with Other Environmental Schemes: Maximising Support and Environmental Benefits

The Sustainable Farming Incentive (SFI) is a key element of England’s environmental and agricultural strategy, offering payments to support sustainable land management. However, it doesn’t have to be used alone. Landowners and farmers can combine SFI with other environmental schemes like Countryside Stewardship (CS) and the England Woodland Creation Offer (EWCO) to maximise financial support and achieve broader environmental outcomes.

This article explains how to effectively integrate funding from different schemes, provides practical tips for designing land management plans that deliver multiple benefits, and outlines considerations for combining SFI with other emerging environmental financing mechanisms like Biodiversity Net Gain (BNG) and carbon credits.

Why Combine SFI with Other Schemes?

Combining SFI with other schemes allows landowners to increase financial support and achieve more comprehensive land management goals. For example, while SFI focuses on sustainable farming practices and soil health, schemes like Countryside Stewardship and EWCO can provide additional funding for woodland creation, habitat restoration, and hedgerow management. By strategically integrating these schemes, landowners can create resilient landscapes that support biodiversity, sequester carbon, and improve soil and water quality.

How to Combine SFI with Countryside Stewardship (CS)

Countryside Stewardship offers a range of grants for activities like tree planting, habitat creation, and traditional land management practices. When combined with SFI, it can provide comprehensive support for more complex projects.

Key Countryside Stewardship Options That Complement SFI

1. Hedgerow and Boundaries Grant (BE3)
   Provides support for hedgerow creation and management, which can be combined with SFI’s hedgerow management options (CHRW1, CHRW2, CHRW3) to deliver enhanced landscape connectivity and biodiversity benefits.
   • Example: A landowner could use Countryside Stewardship to fund the initial planting of a new hedgerow and then use SFI payments to maintain and manage the hedgerow over time.
2. Woodland Creation Grant
   Supports the creation of new woodlands by covering planting costs, fencing, and site preparation. This can be paired with SFI’s agroforestry options or tree protection actions to create a diverse, tree-rich landscape.
   • Example: Establish a new woodland using Countryside Stewardship funding and then use SFI’s tree maintenance payments to ensure long-term health and sustainability of the trees.
3. Riparian Buffer Strip and Watercourse Protection Options
   Provides funding for establishing buffer strips along watercourses, which can be integrated with SFI’s soil health and water management options to reduce runoff, prevent soil erosion, and improve water quality.
   • Example: Use Countryside Stewardship for planting riparian woodlands and combine it with SFI’s soil organic matter and erosion control options for a comprehensive water quality improvement strategy.

Practical Tips for Combining SFI with Countryside Stewardship

• Develop a Comprehensive Land Management Plan: Start by creating a land management plan that outlines your long-term objectives and identifies areas where different schemes can be applied to complement each other.
• Consult with a Scheme Adviser: Engage with local advisers from the Rural Payments Agency or Natural England to ensure your chosen actions are compatible and that you’re maximising available funding opportunities.
• Check Eligibility and Overlap Restrictions: While combining schemes is encouraged, some overlap restrictions may apply. For instance, you cannot claim two different grants for the same activity on the same area. Make sure each action is clearly defined and separated in your application.

How to Combine SFI with the England Woodland Creation Offer (EWCO)

The England Woodland Creation Offer (EWCO) provides significant support for creating new woodlands, with funding available for planting, long-term maintenance, and additional contributions for public benefits like biodiversity and water management.

Key EWCO Contributions That Align with SFI

1. Standard Woodland Creation Payments
   Supports the establishment of new woodlands, covering costs like site preparation, planting, and tree protection.
   • Example: Use EWCO funding to establish a new woodland and then apply for SFI’s tree maintenance options to provide annual support for managing and protecting young trees.
2. Additional Contributions for Public Benefits
   EWCO offers additional payments for woodlands that deliver specific environmental benefits, such as improved water quality or public access. This can be combined with SFI’s water quality and soil health options.
   • Example: A landowner could use EWCO funding for water management woodland creation and pair it with SFI’s soil health actions to reduce soil erosion and improve water infiltration.
3. Biodiversity and Habitat Connectivity
   Use EWCO’s biodiversity contributions to create habitats for priority species and combine it with SFI’s hedgerow management options to establish wildlife corridors that connect different habitat areas.
   • Example: Establish woodlands with EWCO funding and connect them using SFI-supported hedgerows, creating a network of habitats that benefit a wide range of species.

Practical Tips for Combining SFI with EWCO

• Focus on Multi-Functional Benefits: Design your land management plan to deliver multiple benefits, such as combining woodland creation with improved water quality and enhanced biodiversity. This approach will increase the overall value of your project and make it more eligible for additional funding.
• Explore Additional Contributions: Consider applying for EWCO’s additional contributions for biodiversity, water management, or public access to maximise your funding.
• Plan for Long-Term Maintenance: While EWCO provides establishment funding, SFI can support ongoing maintenance. Ensure that your plan includes long-term maintenance actions that align with both schemes.

Combining SFI with Biodiversity Net Gain (BNG) or Carbon Credits

According to the available documentation and information, it is possible to combine the SFI with Biodiversity Net Gain (BNG) or carbon credits, provided that the activities under each scheme are clearly separated and not double-funded for the same outcome.

Biodiversity Net Gain (BNG)

BNG is a requirement under the Environment Act 2021 for developments to demonstrate at least a 10% increase in biodiversity compared to the pre-development baseline. Landowners and farmers can engage with BNG by offering land for biodiversity enhancement, restoration, or offset projects.

• How to Combine with SFI: BNG can be combined with SFI actions that create new habitats or enhance existing ones, such as hedgerow management or woodland creation, as long as these actions are clearly demarcated and not funded twice for the same activity.

Carbon Credits

Carbon credits offer another avenue for financial support through the sale of sequestered carbon from woodland creation or other carbon-capturing practices.

• How to Combine with SFI: Landowners can implement woodland creation or agroforestry options under SFI and then register these areas under the Woodland Carbon Code or Peatland Code to generate and sell carbon credits. It’s essential to ensure that any carbon revenue generated does not overlap with SFI payments for the same activities.

Practical Tips for Combining SFI with BNG or Carbon Credits

• Create Clear Boundaries and Documentation: Maintain clear documentation and mapping of areas under different schemes to demonstrate that activities are separate and not double-funded.
• Consult with Advisers and Specialists: Engage with experts in BNG or carbon markets to ensure compliance and maximise financial benefits while aligning with SFI objectives.
• Understand Scheme Requirements: Make sure that the actions you plan to implement meet the specific requirements of each scheme and that there is no overlap in the funding claimed.

Practical Tips for Designing Multi-Functional Land Management Plans

1. Map Out Your Objectives and Available Areas: Start by mapping out your farm or estate and identifying areas where different actions can be implemented. Consider areas for woodland creation, hedgerow management, and soil health improvement.
2. Identify Synergies Between Schemes: Look for synergies between SFI, Countryside Stewardship, and EWCO. For example, combine SFI’s tree maintenance with EWCO’s establishment funding, or use SFI’s soil health options alongside Countryside Stewardship’s buffer strips.
3. Create a Detailed Multi-Scheme Management Plan: Develop a comprehensive management plan that details how each scheme will be used, what actions will be taken, and how the schemes will work together to deliver environmental and economic benefits.
4. Engage with Local Experts and Advisers: Consult with local advisers who can provide insights into combining schemes, ensuring compliance, and making the most of available funding.

Combining SFI with other environmental schemes like Countryside Stewardship, the England Woodland Creation Offer, Biodiversity Net Gain, and carbon credits offers landowners and farmers an excellent opportunity to maximise funding and create multi-functional landscapes. By understanding how these schemes complement each other and implementing a well-planned land management strategy, you can achieve enhanced environmental benefits, improve farm productivity, and secure long-term financial support.

If you’re considering applying for SFI alongside other schemes, start by consulting with your local adviser and developing a detailed land management plan that outlines your long-term goals and funding strategies. With the right approach, you can make the most of these opportunities to support your land and contribute to a healthier environment.

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