鈥淚t is deeply regrettable that today鈥檚 meeting is even necessary,鈥� NFU Deputy President David Exwood began the roundtable, reflecting on the widespread shock from the industry at the sudden closure of the SFI (Sustainable Farming Incentive), which is the main element of Defra鈥檚 ELM scheme.
鈥淚n the short time it鈥檚 been available, SFI has become an important cornerstone for farmers and they were relying on its continuing availability to build on their role as countryside stewards and food producers.
鈥淭he sudden closure last week was a shock to everyone when confidence was already at a new, all-time low.鈥�
Referring to the roundtable of farming industries held on Monday with Food Security and Rural Affairs Minister Daniel Zeichner, David said representatives left with an open question of what the future holds for agricultural support schemes.
Confidence collapse
NFU Director of Policy Andrew Clark and senior support schemes adviser Richard Wordsworth updated representatives from HSBC, NatWest, Barclays, Virgin Money, Oxbury Bank, Lloyds Banking Group and UK Finance on the fallout from the scheme鈥檚 closure.
Most apparent was the sense of disappointment and frustration, with Richard Wordsworth noting that many farmers were ready to hit the submit button on their worked up applications, with previous RPA online guidance advising that applicants would be given six weeks warning of any accessibility changes to the scheme.
There was a collective feeling among banking and NFU representatives that farmers had lost trust and confidence in the government.
鈥�Many farmers now feel they cannot rely on government schemes and are being forced to scale back their environmental ambitions just to keep their businesses viable.鈥�
NFU Deputy President David Exwood
The news of the SFI closure came on the eve of the NFU revealing the results of its farmer business confidence survey which bypassed last year鈥檚 record lows to mark the lowest levels since it began 15 years ago.
The point was made that it was difficult for farmers to consider investment opportunities without knowing what the future looks like.
Questions were raised around the 拢5 billion budget Defra quoted in an , setting out where the agriculture budget was being spent. This was notably the first time this level of detail had been made available on that 拢5 billion figure, with SFI seemingly the only spending stream affected.
Hitting out in the dark
Banking experts offered their insight into the immediate reaction of their customers, placing emphasis on how farmers can be best supported and urging them to have conversations now.
鈥淭here was clear agreement at the meeting that trust between farmers and government has been severely eroded,鈥� David concluded. 鈥淢any farmers now feel they cannot rely on government schemes and are being forced to scale back their environmental ambitions just to keep their businesses viable.
鈥淔or some, cashflow will be very challenging and there was a clear message to encourage farmers to have conversations with their banks if necessary.
鈥淓very farming business needs certainty, and this decision has made an already difficult situation far worse.
鈥溁始一藈ill continue to work with all stakeholders in agriculture to restore stability and enable members to carry on producing food and looking after the environment and a time of global change.鈥�
鈥淲e鈥檙e very keen to understand the timeline,鈥� Richard added. 鈥淲e have come out of SFI twice before but back then, we knew what we had coming around the corner.鈥�
The group agreed to meet regularly to monitor the situation.
