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The Sustainable Farming Incentive (SFI) in the United Kingdom risks removing productive land from crop rotations and shifting food production overseas, James Warner, managing director of United Oilseeds, has warned. Speaking at the co-operative’s corporate day on November 5, Warner noted that the structural changes introduced by the SFI have taken 'vast swaths' of agricultural land out of production, contributing to the UK's smallest oilseed rape (OSR) crop area in four decades for the 2025 season.
Warner estimated that approximately 550,000 hectares are now covered by SFI agreements that exclude them from conventional production, including 180,000 hectares of fallow land. This fallow area alone represents a potential loss of 1 million tonnes of crop output. While SFI payments reached £256 million, Warner estimated that the value of foregone output from the 550,000 hectares could exceed £750 million, assuming a standard arable rotation. He emphasized that his concern lies with the broader industry impact rather than individual farming choices.
According to Warner, the previous Basic Payment Scheme (BPS) acted as a subsidy alongside production, whereas the SFI presents an 'either-or' scenario. As domestic production falls, the UK will increasingly rely on imports to meet demand. Warner highlighted Brazil as a case in point; while it has overtaken the UK in planted area, its yields average 1.5t/ha compared to nearly 4t/ha in the UK. He argued that replacing one hectare of British production requires up to 2.5 hectares in Brazil, questioning the net environmental gain.
Projections from United Oilseeds suggest the UK will require nearly 2 million tonnes of OSR by 2027, but domestic production is expected to reach only 1.2 million tonnes, leaving a net import requirement of over 700,000 tonnes. Farmer Chris Padfield of RN Padfield & Sons noted that while environmental schemes like SFI can support soil fertility and diverse rotations, OSR remains his most profitable crop. He has successfully reintroduced it through vigorous varieties and strategic drilling to mitigate pest risks.
In the markets, Paris rapeseed futures have dropped by approximately €30/t recently as European harvests conclude and attention shifts to Australian and Canadian supplies. UK ex-farm prices have followed suit, declining from £450/t to £420/t. Warner concluded that despite these pressures, OSR remains a vital risk management tool for farmers, as its price is decoupled from wheat futures and linked instead to global energy and vegetable oil markets.
Source: Farmers Weekly