Grant 'fiasco' leaves future uncertain, says farmer

A farmer whose family has worked the land in Cambridgeshire for almost 100 years says the future of his business is "uncertain" after missing out on vital funding for environmental work.

Peter Hatley, from Landbeach near Cambridge, was one of thousands of farmers nationwide who lost out when the application window for the £253m Sustainable Farming Incentive (SFI) closed after six hours.

He said he had prepared thoroughly to apply for £150,000 funding and logged on to the system as it opened, describing it as a "total fiasco".

Farming Minister Stephen Morgan said he had listened to concerns and that an extra £20m would be added to the fund due to demand.

The SFI is the government's flagship environmental support scheme, part of a package of payments that replaced the European Union's common agricultural policy.

It pays farmers to look after nature and support food production.

The scheme opened for applications throughout two windows in 2026, with the first open to small farms and those without an existing Environmental Land Management revenue agreement.

A second window - for all other eligible land managers and farmers, including Hatley - opened at 10:00 BST on 22 September.

But by 16:00 it had closed, with the entire budget allocated.

Hatley has run environmental schemes on his farm for two decades, which have enabled him to create spaces for nature, but said the price of his crops alone would not sustain his business, and the SFI money provided a buffer.

"All the work that has been done to support wildlife and the environment here will need to be ripped up," he said.

"I am left with no choice but to farm intensively as I can to look after my family and look after my business."

He believed there was an increased demand for the pay-out due to a decline in the value of crops and poor yields caused by climate change.

"Last year I lost £100,000 on wheat and barley and a good year's profit would only be about £30,000, so you can see how important the SFI funding is to me," he added.

He said wildlife had blossomed over the years with the incentive.

"We've planted hedges, taken out field corners, and planted pollen; we're only custodians of this land. We know it's going to be here well after we've gone, so you try and do the best by it.

"These schemes have allowed us to do that, but now I don't know what's going to happen. With the loss of support payments, we need to be paid for everything we do."

Hatley said it was every parent's dream to see their child follow in their footsteps, and added that if his five-year-old son asked to go into farming, his advice would be "don't do this".

The farming minister added: "I know some farmers who wanted to join SFI26 will be deeply disappointed not to have secured an agreement during Window 2, particularly given the challenges the sector has faced this year.

"I have heard those concerns and am determined to work closely with farmers as we learn lessons from this year and shape SFI27, including exploring alternatives to a first-come, first-served application process."

He said that about 12,000 applications were submitted during window two and that, in anticipation of high demand, an extra £20m had been added to the fund.

Two "exception groups" who contacted the Rural Payments Agency (RPA) before the window closed would be able to continue their applications, the minister confirmed.

They were "assisted digital" farmers, who need the RPA to complete an application on their behalf, and those who had experienced "technical issues" with the service.

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