For many farmers, this year’s Sustainable Farming Incentive was a long-awaited chance. The £253m scheme opened at 10am on Tuesday 22nd September, and just before 4pm the same day, the government confirmed it was closed, with the full budget allocated.
For many, this was the first chance to apply since the scheme closed suddenly in March 2025, and the next window won’t open until 2027. That leaves a real gap for farms that were counting on the Sustainable Farming Incentive, or whose existing agreements are coming to an end.
It also changes things on the ground. Land that has been in fallow, wildflower mixes or other Sustainable Farming Incentive options may now need to come back into production, and that means seed and fertiliser bills that weren’t in this year’s budget. All of this comes at the end of a hard year, with heat and drought hitting yields and fertiliser prices climbing.
If you’ve missed out, the most important thing you can do now is make a plan. Here’s how we’d approach it with you.
Get a clear picture of the year ahead
Every good plan starts with knowing where you stand. Work out how much money you were expecting to save with the Sustainable Farming Incentive, or how much you’ll lose as your current agreement ends. Then map out when your big costs land through the year (seed, fertiliser, feed, rent, wages, repairs) against when your money comes in from harvest, livestock sales or other income.
Farming income rarely arrives evenly, so a missing payment hurts more at some times of year than others. Laying it out month by month shows you exactly when things might get tight and by how much. It’s something we sit down and do with farmers all the time, and it often shows the gap is more manageable than it first looks.
Decide what to do with land
Not every acre needs to go straight back into crop. Some land may be worth cropping now, some may suit a different use, and some may be better left as it is until 2027. It depends on your soil, your rotation, your machinery and what the numbers say.
Where cropping makes sense, timing matters. Take a farm bringing 50 acres back into production: that could mean around £5,000 for seed and £10,000 to £15,000 for fertilisers this year, long before that land earns anything back. Waiting until the cash is there can mean paying more for inputs or missing the best drilling window. Spreading the cost of inputs, and repaying from the crop they grow, is one way to get the land working at the right time without draining the money you need to run the farm day to day.
Line up your costs with when money comes in
You know when your income arrives, whether that’s after harvest or when stock is sold. The problem is usually the months in between. A good plan works with your farm’s natural rhythm rather than against it, so you’re not stretched by fixed payments during the quiet months.
The best plans also hold up when the season doesn’t go your way. It’s worth building in some breathing room from the start, like not taking on more than the extra acreage can comfortably carry or keeping something in reserve. That way a good harvest is a bonus, and a difficult one doesn’t put the business under strain.
Take a fresh look at the machinery you already own
Most farms have a lot of value tied up in the yard. Tractors, combines, sprayers and other kit you’ve paid off, or are still paying for, can often be put to work to help ease the pressure between now and 2027.
If you own equipment outright, it may be possible to release some of the cash tied up in it without selling it. You keep using the machine as normal, and the money can go towards seed, fertiliser or simply getting through the leaner months. If you’re still paying for equipment, it can be worth reviewing those agreements too. Payments can sometimes be spread differently, brought together into one agreement, or timed to fall after harvest rather than when money is tight.
It’s worth going in with your eyes open, though. Spreading payments over a longer period can mean paying more overall, and it makes sense to borrow against machinery you’ll be keeping for a good few years yet. We’ll look at what you’ve got, what it’s worth and whether this makes sense for your farm, and we’ll always give you an honest view before you change anything.
Keep your longer-term plans moving
Missing out on the Sustainable Farming Incentive doesn’t mean you have to put everything on hold. If you were planning to invest in new machinery or equipment, including kit that supports more efficient or sustainable farming, spreading the cost can let you go ahead while keeping cash in the business. That means you can keep up the environmental work you’ve already started and be in a strong position when the next window opens.
How Moorgate can help
Sometimes the right answer isn’t finance at all. Shifting when you buy, or rethinking what you do with certain fields, can be enough to bridge the gap. Where a farm does need support, the right approach depends entirely on the business, and that’s why we start with your plan, not a product.
At Moorgate Finance, we work with farm businesses across the country. We understand the pressures farmers are under right now, and we’ll always give you an honest view of what’s right for your farm.
Missing out on the Sustainable Farming Incentive is frustrating, but with a clear plan it doesn’t have to hold you back.
Want to talk it through? Call us on 01908 92 62 62 or Apply Now to start the conversation.
