UK vineyards face funding crisis as sustainable farming payments are frozen until 2026

The UK’s wine industry is facing a critical moment after the government froze new applications to the Sustainable Farming Incentive (SFI) scheme in March 2025. The SFI, introduced as part of England’s post-Brexit agricultural policy, was designed to reward farmers for environmentally friendly practices. But due to budget constraints, the Department for Environment, Food and Rural Affairs (Defra) capped the program, leaving many small-scale and new vineyard operators without access to promised support.

The freeze has hit particularly hard among smaller vineyards and those practicing agroecological farming. These producers had only recently become eligible for SFI payments, such as £798 per hectare for maintaining wildflower cover between vine rows. Now, they are excluded from the scheme until at least 2026. Those who managed to enroll before the cap will continue receiving payments, creating a divide within the sector.

Tom Bradshaw, president of the National Farmers’ Union (NFU), described the situation as one of “haves and have-nots,” reflecting widespread frustration among growers. Many vineyards had planned investments based on expected SFI income, including soil improvement projects and cover cropping. Without that funding, these plans are now on hold or canceled.

According to WineGB’s latest sustainability report, only 19% of UK vineyards have successfully accessed green funding through government programs. The low participation rate is not due to lack of interest but rather administrative hurdles and what many see as a lack of recognition for viticulture within broader agricultural policy. Nicola Bates, CEO of WineGB, called for clearer guidance and more targeted financial support for vineyards under the SFI framework.

Before Brexit, most UK vineyards were too small to qualify for EU subsidies. The SFI was seen as a long-overdue opportunity to correct that imbalance. Its suspension now threatens progress toward sustainable viticulture by making practices like organic conversion and regenerative farming financially unviable for many.

In response to the freeze, a growing number of farmers and advocacy groups are backing the Basic Income for Farmers (BI4Farmers) campaign. The initiative proposes a universal basic income for all farmers and farmworkers—an unconditional payment aimed at stabilizing incomes and encouraging sustainable land management.

Following the SFI cap, BI4Farmers sent an open letter to Daniel Zeichner, Minister for Food Security & Rural Affairs, urging him to reverse the decision and consider implementing a basic income model. Joanna Poulton, campaign coordinator, said farmers were promised financial security under post-Brexit reforms but have instead faced uncertainty and exclusion.

Supporters argue that a basic income would allow growers to invest in biodiversity, soil health and low-input farming methods without risking their financial stability. Will White from Sustain said such a system would remove the pressure of survival from day-to-day operations and enable long-term planning.

For vineyards in particular—where returns on investment can take years—a guaranteed income could be transformative. It would help new entrants weather early financial challenges and support experimentation with sustainable techniques. It could also encourage diversification into areas like agro-tourism or renewable energy projects.

So far, no vineyard operators have publicly opposed the BI4Farmers proposal. A pilot program targeting small horticultural farms, including vineyards, is currently under discussion.

International comparisons highlight how far behind the UK has fallen in supporting its wine sector. In France, Italy and Spain, vineyards benefit from EU Common Agricultural Policy (CAP) payments that function similarly to a basic income. These countries also offer grants for vineyard improvements and crisis management tools like surplus wine distillation funds.

Australia provides targeted support through its Farm Household Allowance program and grants for research and tourism development in wine regions. While not universal subsidies, these measures offer relief during difficult periods.

In contrast, UK wine producers now face a future without any comparable safety net. The final payments under the Basic Payment Scheme are being issued this year, with a cap of £7,250 per business. The SFI was intended to replace it as the main form of support but has now stalled before reaching full implementation.

Defra has indicated it will revise the SFI program to address current shortcomings. Industry groups like WineGB are pushing for changes that would include horticulture-specific options and dedicated funding streams that don’t force vineyards to compete with large-scale arable farms.

As of 2024, there are over 900 vineyards operating across England and Wales—a number that continues to grow each year. The sector contributes not only to rural economies but also to environmental goals through sustainable land use practices.

With mounting pressure from industry leaders and advocacy groups alike, policymakers face increasing calls to act quickly. Whether through reforming existing schemes or introducing new models like a farmer’s basic income, many believe urgent action is needed to ensure that small-scale winegrowers are not left behind in the evolving landscape of British agriculture.