The Sustainable Farming Incentive (SFI) has played a recurring role in conversations throughout the Biomass Connect project, particularly in relation to how bioenergy crops align with evolving land management support schemes. Various demonstrator hubs within the project have explored how biomass crops could be integrated into SFI-eligible practices — for example, contributing to flower-rich margins or being recognised under the “non-horticultural permanent crop” category for further subsidy purposes.
However, recent news that the SFI scheme is temporarily closed to new applications raises fresh concerns. For those considering the transition to biomass cropping in England, this pause could signal a reduction in the financial support available in the near term. This, in turn, may impact the attractiveness of these crops at a time when both net-zero ambitions and the need for domestic renewable energy sources are increasing.
Researchers from the UK Centre for Ecology and Hydrology and IBERS previously highlighted that designating biomass crops—such as short rotation coppice (SRC) willow and Miscanthus—as non-horticultural permanent crops allowed them to qualify for the following payment options under the Sustainable Farming Incentive (SFI).
- Flower rich grass margins (IPM2) £798 per ha (‘limited area’ action)
And more widely as part of whole farm payments received related to integrated pest management plans, soil testing (SOM) plans and nutrient management plans.
What Does This Mean for Bioenergy Crops?
For growers already engaged with biomass systems — such as Miscanthus or SRC willow — the closure creates uncertainty. While existing agreements will remain unaffected, the suspension may discourage some new entrants and those in early stages of planning.
It’s important to note that Defra has stated the pause is to streamline and improve application processes, with a new application window expected to open later this year. Yet, the lack of clarity on what will be covered by any future scheme and whether biomass crop support will remain could leave many questioning the long-term strategic support for non-food cropping systems.
What’s Next for Biomass Incentives?
While the sustainability and feasibility of biomass energy in meeting net-zero targets have been debated (relating to land use priorities and food vs fuel debates), it is consistently acknowledged that biomass has an important role to play. The UK Government’s extensive 2023 Biomass Strategy underlined the value of this resource, particularly when integrated with emerging technologies such as Bioenergy with Carbon Capture and Storage (BECCS). However, the evolving policy landscape creates uncertainty, particularly for those considering long-term biomass strategies—such as perennial Miscanthus and SRC willow—which remain viable for 15–30 years. Could this uncertainty hinder uptake? Especially where financial incentives are crucial to mitigating perceived risks. As such, clear information on any replacement schemes needs to be provided and disseminated as early as possible to those involved in UK biomass crop support, including those involved with information gathering, field planning and consultation.
We aim to provide an update later in the year on what any new scheme changes mean for biomass crop production.
