The government has today announced increased payments to farmers but the NFU said the announcement was "hugely frustrating".

Speaking at the Oxford Farming Conference this morning (Thursday, January 5), Farming Minister Mark Spencer announced more money for farmers and landowners through both the Countryside Stewardship and the Sustainable Farming Incentive schemes.

The changes mean farmers could receive up to a further £1,000 per year for taking nature-friendly action through the Sustainable Farming Incentive (SFI).

This new management payment will be made for the first 50 hectares of farm (£20/ha) in an SFI agreement, to cover the administrative costs of participation and to attract smaller businesses - many of whom are tenant farmers - who are currently under-represented in the scheme. 

Farmers with a Countryside Stewardship (CS) agreement will see an average increase of 10 per cent to their revenue payment rates – covering ongoing activity such as habitat management.

Defra is also updating capital payment rates, which cover one-off projects such as hedgerow creation, with an average increase of 48 per cent.

The Farming Minister promised that a further range of actions under the schemes, which farmers could be paid for, will be published soon.

He said: "My challenge to our great industry is simple - this year, take another look at the Environmental Land Management schemes and think about what options and grants will help support your farm.

"As custodians of more than 70 per cent of our countryside, the nation is relying on its farmers to protect our landscapes as well as produce the high-quality food we are known for, and we are increasing payment rates to ensure farmers are not out of pocket for doing the right thing by the environment.

"By increasing the investment in these schemes, I want farmers to see this stacks up for business – whatever the size of your holding."

However, the NFU is disappointed by this morning's announcement. 

NFU Vice President David Exwood said: “I regret that farmers and growers are making crucial long-term decisions that are essential to running viable and profitable food producing businesses without the vital clarity needed on ELM schemes and options that will be available.

“While some of these latest changes are welcome, including enhanced payments for farmers and landowners through the Countryside Stewardship scheme and the introduction of a Sustainable Farming Incentive (SFI) management payment, it risks being too little too late, especially given the current economic challenges we are experiencing and the rapid erosion of direct payments.

“It is hugely frustrating that nearly five years on from Defra’s Health and Harmony consultation, which set farming in England on a path towards public goods for public payments, we still only have three standards available for the SFI.

"It’s a sad reflection of the scheme’s progress and development that NFU members know more about what they will lose in direct payments than what they will gain from taking part in these new schemes.

“The NFU has always been very clear; for the ELM to succeed it needs to be simple, provide certainty and fairly reward farmers for taking part.  

"This means schemes that are inclusive and available to every farm business - whether upland or lowland, tenant or owner-occupied - with a range of practical and profitable options available through a ‘foundation’ SFI standard to ensure the high uptake needed so these schemes have the desired impact.

"Ministers must also demonstrate transparently how direct payments have been redirected to the ELM programme."