Farming and Rural Land Use
Overview
Agricultural land covers ~67% of England. It is therefore central to nature recovery, water quality, and climate targets. ELM (Environmental Land Management) schemes — SFI, Countryside Stewardship, Landscape Recovery — are the primary policy mechanism, transitioning farmers from direct payments (BPS) to payments for environmental outcomes. The January 2026 SFI simplification introduced the primary current tension.
Departmental positions
| Department | Position | Key commitment |
|---|---|---|
| Defra | Policy lead; ELM funder | ELM to £2bn/yr by 2028-29; farming roadmap 2026; SFI June 2026 application window |
| Natural England | Environmental outcomes delivery on farmland | Catchment Sensitive Farming; integration with SFI/CS/LR |
| EA | Agricultural water quality enforcement | Inspection funding £5m → £12m by 2029; National Agriculture Programme monitoring |
Strategic coherence assessment
Fragile coherence:
- The SFI scheme tension is real: Government has simultaneously committed to ELM as the mechanism for nature recovery and water quality (environmental targets) AND simplified the scheme in response to budget pressure and farmer lobby pressure. These two positions are in direct conflict.
- Farming roadmap (2026): The 25-year strategic document is in development — its absence means the long-term direction is unclear to farmers making investment decisions now.
- Inheritance Tax: The IHT threshold raise (£1m → £2.5m) signals political sensitivity around farming sector — policy is partly shaped by political pressure, not just environmental evidence.
- Batters Review: Published December 2025; signals government recognition that farm profitability is under stress during ELM transition.
Key tensions
- sfi-simplification-water-quality — SFI simplification vs. statutory environmental target delivery through ELM
Open questions
- What specific SFI actions have been removed or made ‘limited area’? Which ones are most relevant to water quality and biodiversity?
- What is the farming roadmap expected to say about the ELM-to-food-security balance?
- Has the Batters Review resulted in any specific policy changes beyond the January 2026 OFC announcements?