David Eudall, AHDB Economics & Analysis Director says: “The sudden timing of this change has come as a shock to the industry.

“Because so many farmers have joined the SFI, the government has now reached the limit of its farming budget for this program. AHDB analysis shows that the farming budget had already been significantly eroded by farm input inflation. All existing agreements will continue, and farmers who have already applied and are eligible will still be accepted into the program.

“There would have been many farmers who had been planning to enter SFI schemes as a way of managing financial risk across their businesses. With the closure of the scheme overnight this now adds to what was an already challenging financial situation. Many farmers in England are continuing to see a challenging marketplace with volatile commodity prices for outputs and higher priced inputs.

“Ultimately, farmers in England are now in a more uncertain situation.

“AHDB will be reviewing this and any future announcements very closely and will be reporting back with more in-depth analysis in due course.”

- ends -

Notes to editors

AHDB is a statutory levy board funded by farmers and others in the supply chain. Our purpose is to be a critical enabler, to positively influence outcomes, allowing farmers and others in the supply chain to be competitive, successful and share good practice. We equip levy payers with easy-to-use products, tools and services to help them make informed decisions and improve business performance. Established in 2008 and classified as a Non-Departmental Public Body, AHDB supports the following industries: meat and livestock (Beef, Lamb and Pork) in England; Dairy in Great Britain; and Cereals and Oilseeds in the UK. For further information visit ahdb.org.uk.

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