UK vineyards left high and dry by SFI freeze

Small-scale winegrowers risk being squeezed out without urgent policy reform, as the UK wine sector warns of “forgotten” status in farm support landscape following the Sustainable Farming Incentive (SFI) freeze. The post UK vineyards left high and dry by SFI freeze appeared first on The Drinks Business.

Apr 8, 2025 - 10:49

UK vineyards left high and dry by SFI freeze

Small-scale winegrowers risk being squeezed out without urgent policy reform, as the UK wine sector warns of “forgotten” status in farm support landscape following the Sustainable Farming Incentive (SFI) freeze. An English vineyard following the SFI freeze

The UK’s fledgling wine industry has long been hailed as a beacon of rural regeneration and green farming, but recent events have left many of its growers teetering. In March 2025, the government abruptly capped its Sustainable Farming Incentive (SFI) scheme – the centrepiece of England’s post-Brexit agricultural policy – halting new applications due to budget constraints. For viticulturists, particularly those managing small or agroecological vineyards, the announcement landed like a late frost. Having only recently become eligible for support, they are now shut out once again. The promised financial recognition for nature-friendly practices – such as £798 per hectare for wildflower cover between vine rows – has evaporated for many. “Now, what we have is the haves and the have-nots,” said NFU president Tom Bradshaw, capturing the sense of frustration felt across the industry. Those fortunate enough to have secured an agreement will continue to receive payments, while others – many of them new entrants or smaller producers – are excluded until at least 2026.

Low uptake highlights structural injustice

Data from WineGB’s latest sustainability report shows that only around 19% of UK vineyards have successfully accessed government green funding. The low uptake, despite high interest, reveals both the administrative barriers and the sector’s peripheral treatment within agricultural policy. WineGB’s CEO Nicola Bates noted this mismatch between enthusiasm and access, calling for “clearer guidance and increased financial support for the wine sector within the SFI framework.” Many vineyards are run on fewer than five hectares and were ineligible for EU subsidies pre-Brexit. The SFI offered a long-overdue chance to correct that imbalance. Its suspension not only pulls the rug from under growers but also threatens the momentum towards more sustainable viticulture. Cover crops, organic conversion and regenerative methods – all encouraged by the SFI – now represent unreimbursed costs. One family vineyard had planned to use SFI support for winter cover cropping to improve soil structure. Now, like many others, they face postponement or abandonment of such plans. As the chair of the Nature Friendly Farming Network warned, many farmers are left “with no clear opportunity to be rewarded for delivering public goods in the near future”.

Basic income campaign gains ground as trust erodes

In response to these setbacks, the Basic Income for Farmers (BI4Farmers) campaign has stepped into the breach, proposing a radical rethinking of agricultural support. The campaign advocates for a universal, unconditional basic income for all farmers and farmworkers – a regular payment to stabilise livelihoods and encourage sustainable practices. Following the SFI freeze, BI4Farmers and supporting farmers issued an open letter to the Minister for Food Security & Rural Affairs, Daniel Zeichner. Their demands are clear: reverse the SFI cap, reopen applications, and explore a farmer's basic income to underpin the sector’s long-term resilience. Joanna Poulton, campaign coordinator, said: “Farmers were promised that post-Brexit subsidy schemes would provide financial security. Instead, we’ve seen a pattern of uncertainty and exclusion.” Will White of Sustain echoed this, arguing that a basic income would enable growers to invest in soil health, biodiversity and low-input methods “without the looming pressure of financial survival.”

What would a farmer basic income mean for viticulture?

For the UK’s burgeoning wine industry, a basic income could be transformative. Vineyards are long-term investments with high up-front costs and delayed returns. A guaranteed payment could help new entrants bridge the lean early years, support experimentation with ecological practices and foster mental well-being. Stability would also make it easier for vineyards to diversify – whether into agro-tourism, cider production or beekeeping – and reinvest in infrastructure such as solar panels or disease-resistant grape varieties. Crucially, no vineyard voices have yet opposed the BI4Farmers proposal. While questions remain about funding and implementation, the concept is gaining momentum. A pilot programme focused on small horticultural farms, including vineyards, is now under discussion.

Lessons from abroad

The contrast with international peers is stark. France, Italy and Spain all provide vineyard support via the EU’s Common Agricultural Policy (CAP), which offers area-based payments that function as a de facto basic income. These payments enable long-term planning and investment – in organics, irrigation, and even crisis management – that UK growers now lack. France’s FranceAgriMer grants, for example, co-fund vineyard improvements, while Spain and Italy offer regional aid for heroic viticulture and environmental transition. These countries also maintain market-oriented schemes – from replanting grants to surplus wine distillation funds – cushioning growers from market shocks. Australia, though lacking universal subsidies, still provides a Farm Household Allowance for struggling farm families and offers targeted grants for R&D and wine tourism. Its philosophy may be “help in hard times” over “blanket payments”, but the support is there when needed. The UK, by contrast, has no equivalent safety net in place for wine producers.

Reform or retreat?

With the last Basic Payment Scheme cheques being issued this year (capped at £7,250 per business), the SFI was supposed to be the future. Instead, its premature pause has left many vineyards scrambling. Defra has signalled that it will revise the SFI to address current flaws – a chance, perhaps, to integrate horticulture-specific options and create ringfenced funding that avoids competition with arable giants. WineGB is pushing hard for inclusion. Meanwhile, BI4Farmers continues to lobby for a broader safety net, positioning a basic income as a long-term, equitable alternative that could help secure the livelihoods of those producing the nation’s food and wine. With over 900 vineyards and growing, the UK wine industry represents not just a rural economic asset but a sustainability success story in the making. As policymakers weigh the next steps, the choice is stark: leave growers to shoulder the burden alone or back them with the financial tools they need to flourish.