Statutory guidance

Updated Sustainable Farming Incentive standards agreement: Terms and Conditions (June 2023 version)

Updated 28 June 2022

Applies to England

1. Introduction

1.1 The Sustainable Farming Incentive

The Sustainable Farming Incentive (“SFI”) is a scheme run by the Rural Payments Agency (referred to below as “us”, “we, “our”) on behalf of the Department for Environment, Food and Rural Affairs (“Defra”). It is part of the Environmental Land Management Scheme under section 1 of the Agriculture Act 2020 and in conjunction with the Agriculture (Financial Assistance) Regulations 2021 (“the Regulations”).

1.2 About these Terms and Conditions:

(a) The SFI standards agreement (the “Agreement”) comprises:

  (i) the “Agreement Document”, which describes the sum to be paid to you (the “Grant”) for delivering the chosen standard(s) to the level you have selected (the “Standards”)

  (ii) these “Terms and Conditions”, which are applicable to the payment of the Grant; and

  (iii) the “Standards”

(b) For the avoidance of doubt, the Grant includes the sum to be paid to you for entering and managing your Agreement (the “SFI Management Payment”). All references to the Grant in these Terms and Conditions include the “SFI Management Payment”. Details regarding payment of the “SFI Management Payment” are set out in these Terms and Conditions. Your Agreement Document does not describe the sum to be paid to you for the “SFI Management Payment”.

If there is any conflict between these Terms and Conditions, the Agreement Document and the Standards, these Terms and Conditions will be given priority.

(c) When the agreement holder (“you”) enters the Agreement, you are agreeing to the terms applicable to the payment of the Grant.

1.3 Why you should read the Terms and Conditions

You should read the Terms and Conditions carefully because they provide information including:

(a) how we will pay the Grant to you, as set out in your Agreement Document;

(b) how you or we may change or end the Agreement; and

(c) what you need to do if you cannot comply with your obligations under the Agreement.

1.4 References in the Terms and Conditions:

(a) Definitions of capitalised terms are defined in this document when they are first referred to and can also be found in the glossary at the end of this document.

(b) A reference to the “Law” means any law, statute, subordinate legislation within the meaning of Section 21(1) of the Interpretation Act 1978, byelaw, right within the meaning of Section 4(1) EU Withdrawal Act 2018 as amended by EU (Withdrawal Agreement) Act 2020, regulation, order, regulatory policy, mandatory guidance or code of practice, judgement of a relevant court of law, or directives or requirements of any regulatory body with which you are required to comply.

(c) A reference to a statute or statutory provision is a reference to it as amended, extended or re-enacted from time to time and shall include all subordinate legislation made under that statute or statutory provision.

(d) A reference to a public organisation includes a reference to any successor to that public organisation.

(e) Any words following the terms ‘including’, ‘include’, ‘in particular’ or ‘for example’ or any similar phrase shall be construed as illustrative and shall not limit the generality of the related general words.

(f) Unless the context otherwise requires, words in the singular shall include the plural and in the plural shall include the singular.

1.5 SFI Scheme Information

We have published information relating to SFI on GOV.UK. The Scheme Information includes:

(a) the Standards;

(b) the “Scheme Rules” that further explain the mandatory requirements of your Agreement as established by these Terms and Conditions. The Scheme Rules are contained in the following sections of the Scheme Information on GOV.UK:

• Check you and your land are eligible for an SFI standards agreement

• Eligibility of commons and shared grazing for an SFI standards agreement

• Check regulatory issues and consents that could affect a SFI standards agreement

• How an SFI standards agreement works

• Getting paid for an SFI standards agreement

• Checking progress of your SFI standards agreement; and

(c) other scheme information and guidance that is not listed at condition 1.5(a) or condition 1.5(b) which is there to help you. This other scheme information and guidance will not be used to introduce or explain mandatory requirements of your Agreement.

2. About your Agreement

2.1 Your Agreement

The Agreement comprises:

(a) the Agreement Document, including any documents referenced in the Agreement Document;

(b) these Terms and Conditions (which are further explained in the Scheme Rules as explained in condition 1.5(b)); and

(c) the Standards you have selected.

2.2 What you are declaring

By entering the Agreement you confirm that:

(a) the declarations you made in your SFI application for the Grant remain true and accurate to the best of your knowledge and belief;

(b) you have full capacity and authority to enter into the Agreement;

(c) you are not aware of any circumstances which would render you ineligible for the Grant or otherwise prevent you from complying with your obligations under the Agreement;

(d) your obligations under the Agreement do not and will not conflict in whole or in part with any other legal or contractual obligations you are subject to; and

(e) you will at all times comply with all relevant Law in the performance of your obligations under the Agreement.

2.3 What you are agreeing to do

In applying for and receiving the Grant, you are agreeing to:

(a) use the Grant to deliver your chosen Standards (and associated administrative costs) to the level you have selected (“Level”), as referenced in your Agreement Document and supplemented by the Scheme Information;

(b) complete the actions that are part of each Standard (the “Actions”) to the Level you have chosen unless the Actions are prohibited on Agreement Land, as explained in the Scheme Information, because:

  (i) it has historic or archaeological features identified on the Sustainable Farming Incentive Historic Environment Farm Environment Record (SFI HEFER); or

  (ii) it is designated as a Site of Special Scientific Interest (SSSI)

(c) comply with these Terms and Conditions; and

(d) obtain, maintain and comply with any permits, licences, permissions, consents, approvals, certificates and authorisations (whether statutory or otherwise) which are required:

  (i) to comply with the obligations under the Agreement; and

  (ii) for the protection of ancient monuments, archaeological sites, heritage sites, trees, historical sites on the Agreement Land and SSSIs.

2.4 Agreement Period

The Agreement is for a period of three (3) years (the “Agreement Period”) from the date the Agreement commences (the “Agreement Start Date”) until the date it ends (the “Agreement End Date”) unless terminated earlier under condition 15 (Termination of an Agreement) or we approve your Upgrade Request under condition 6 (Changes to your Agreement) and we specify a different Agreement Period which could be for a period of up to or more than three (3) years. The Agreement Start Date and the Agreement End Date are shown in your Agreement Document.

2.5 This Agreement does not replace the need for regulatory consents

You understand that the Agreement does not operate as:

(a) an SSSI consent. If such consent is required you must apply separately in accordance with any instructions provided by Natural England;

(b) a scheduled monument consent of the Ancient Monuments and Archaeological Areas Act 1979 (or other consent under an Act). If such consent is required you must apply separately. You will obtain and take account of the SFI HEFER consultation response for all the land and features in connection to this Agreement; or

(c) any other regulatory consent required by the Law.

3. Management Control of the Agreement Land

3.1 What is Management Control

You will have “Management Control” if you have sufficient control over how the Agreement Land is managed to complete the Actions in the Standards at the Level you have chosen. This is explained in the section about ‘Check you and your land are eligible for an SFI standards agreement’ in the Scheme Rules.

3.2 Management Control for the duration of the Agreement

You must have sufficient Management Control of the land parcels described in the Agreement Document (the “Agreement Land”) for the entire Agreement Period.

3.3 If you lose Management Control

(a) If you lose Management Control of all or part of the Agreement Land before the Agreement End Date you must inform us using the procedure in condition 7 (Change of Circumstances).

(b) If you lose Management Control of all of the Agreement Land, the Agreement will be terminated, and you may have to repay some or all of the Grant already received as set out in condition 7 (Change of Circumstances).

(c) If you lose Management Control of part of the Agreement Land, the affected land will be removed from the Agreement and you may have to repay some or all of the Grant already received as set out in condition 7 (Change of Circumstances).

3.4 Tenanted Land

If you hold land under a Farm Business Tenancy under the Agricultural Tenancies Act 1995 or an Agricultural Holdings Act 1986 tenancy:

(a) you must ensure that by entering the land into the Agreement you do not breach the conditions of your tenancy; and

(b) if the tenancy expires before the Agreement End Date, you must only include this land in your Agreement Land if you expect to have Management Control of this land for the entire Agreement Period.

4. Common Land and Shared Grazing

4.1 What is Common Land and Shared Grazing

The definitions of common land(“Common Land”) and shared grazing (“Shared Grazing”) are explained in the section about ‘Eligibility of commons and shared grazing for an SFI standards agreement’ in the Scheme Rules and any reference to Common Land in these Terms and Conditions or the Scheme Rules applies to Shared Grazing.

4.2 What Common Land can be included in the Agreement

You must enter Common Land into a separate Agreement. The section about ‘Eligibility of commons and shared grazing for an SFI standards agreement’ in the Scheme Rules explains what you must do if your Agreement Land is Common Land.

4.3 What you must do if your Agreement Land is Common Land

(a) If your Agreement Land is Common Land, you must be a “single entity”, either as a sole beneficiary or a group.

(b) you (the single entity under condition 4.3(a)) must have sufficient Management Control of the Common Land so that you can comply with your obligations under the Agreement for the entire Agreement Period. For a group to have sufficient Management Control you must also:

(i) take reasonable steps to contact and consult everyone with a legal interest in the management of the Common Land; and

(ii) obtain the consent of the owner of the Common Land if it is required

(c) If the single entity is a group, you must:

(i) have a formal, legally enforceable internal arrangement;

(ii) identify a main business contact (the ‘nominated representative’) with us who will be responsible for administering the Agreement on behalf of the group; and

(iii) have a bank account registered with us.

5. Annual Declaration

5.1 What is the Annual Declaration

Your “Annual Declaration” confirms that you have complied, or expect to have complied, with your obligations under the Agreement for the relevant Agreement Year. This is explained in the section ‘Submit an annual declaration to confirm progress of your agreement’ in the Scheme Rules.

5.2 When to submit an Annual Declaration

You must submit your Annual Declaration to us each ‘Agreement Year’ (each twelve (12) month period following the Agreement Start Date). You must do this by a date that we will specify (the “Due Date”) which will be within the last two (2) months of the relevant Agreement Year.

5.3 What happens if you do not submit your Annual Declaration

If you do not submit your Annual Declaration by the Due Date, it may affect the Grant paid to you as set out in condition 9 (Payments), and we may also treat this as a breach of your obligations under the Agreement under condition 12.

6. Changes to your Agreement

6.1 How you can upgrade your Agreement

(a) You can request to upgrade your Agreement (an ‘Upgrade Request’) to:

  (i) Add a Standard to the Agreement

  (ii) Move to a higher Level of a Standard already in your Agreement

  (iii) Add land to the Agreement

The section ‘Requesting changes to your agreement’ in the Scheme Rules explains what changes you can request to upgrade the Agreement.

(b) You can submit one Upgrade Request in an Agreement Year. This can only be done in your first and second Agreement Year.

(c) You must submit the Upgrade Request by a date that we will specify in the Scheme Information. We will not accept an Upgrade Request after this date.

(d) Each Upgrade Request can include one or more of the upgrades listed in condition 6.1(a).

6.2 What happens if you request a change to upgrade your Agreement

(a) We will consider your Upgrade Request under condition 6.1 and decide whether to approve it.

(b) We will confirm whether we have approved or rejected your Upgrade Request at the earliest practicable opportunity.

(c) If we approve your Upgrade Request, it will usually apply from the start of the following Agreement Year. We may allow your updated Agreement to continue with its original Agreement Period or we may specify a different Agreement Period.

(d) Where we approve your Upgrade Request, we will ask you to confirm acceptance of your updated Agreement within a time period specified by us. If you do not confirm acceptance within the time period we specify, the Agreement will not be updated.

6.3 Removing Standards, reducing Levels or removing land parcels from the Agreement

(a) During the Agreement Period, we will not usually allow you to remove a Standard, move Agreement Land to a lower Level under the Standards or remove land parcels from the Agreement Land. This is explained in the section ‘Requesting changes to your agreement’ in the Scheme Rules.

(b) If you want to remove a Standard or move to a lower Level under the Standards or remove land parcels forming part of the Agreement Land, you must write to us to request this and explain (providing any supporting evidence) why you wish to do so.

(c) We will consider requests under condition 6.3 on a case-by-case basis and may allow the request if there is a Change of Circumstances as defined in condition 7. We will inform you of our decision within a reasonable time period.

(d) If we approve a request to remove a Standard or move to a lower Level under the Standards or remove land parcels forming part of the Agreement Land, then we may reduce, recover or withhold payment of the Grant in whole or in part until that request has been processed and the Agreement amended accordingly.

6.4 When we may change your Agreement

(a) We will not usually seek to vary your Agreement during the Agreement Period (in a way not referred to elsewhere in these Terms and Conditions).

(b) However, it is possible we may offer you an Agreement upgrade during the Agreement Period. For example, this may be the case if we make changes to these Terms and Conditions or the Standards.

(c) If we offer you an Agreement upgrade under condition 6.4(b), we will notify you in writing setting out the details. It will be possible for you either to accept the Agreement upgrade or continue with your existing Agreement.

(d) There may also be exceptional circumstances (not referred to elsewhere in these Terms and Conditions) where we have to vary your Agreement during the Agreement Period. We will only do this due to exceptional circumstances, such as:

  (i) changes in Law which must be reflected in the Agreement;

  (ii) the need to respond to wider government emergency measures and/or measures imperative to the national interest, for example, disease outbreaks or food security emergencies.

(e) If we vary the Agreement under condition 6.4(d):

  (i) we will notify you in writing and will endeavour to give such notice as is reasonable and proportionate, having regard to the nature of the variation and its consequences for you;

  (ii) any variation to the Agreement will apply from the date we specify in our notice to you; and

  (iii) if the variation to the Agreement under condition 6.4(d) is unacceptable to you, you can terminate your Agreement by notifying us in writing within a reasonable period that we will specify in our notice to you.  Condition 15.3(d) will not apply provided you inform us within the period specified by us.

6.5 When we may temporarily adjust your Agreement

(a) We may identify factors which may temporarily impact your ability to complete the Actions in your chosen Standards to the selected Level, meaning you are temporarily unable to comply with your obligations under the Agreement. These factors may include, but are not limited to, adverse weather conditions such as flooding or drought.

(b) If condition 6.5(a) applies, we may make a temporary adjustment to the Actions in the Standards in the Agreement, with this temporary adjustment only being effective during a time period specified by us.

(c) If we make a temporary adjustment under condition 6.5(b) we will notify you by publishing details on GOV.UK and will endeavour to give such notice as is reasonable and proportionate. Our notice on GOV.UK will set out:

  (i) the details of the temporary adjustment

  (ii) the time period for when the temporary adjustment applies, including a start date and end date

  (iii) the evidence you must keep if you choose to comply with the temporary adjustment, as described under condition 6.5(f)

(d) The temporary adjustment under condition 6.5(b) will cease to apply after the end date specified in our notice under condition 6.5(c). After that end date, you must complete the Actions in your chosen Standards to the selected Level to comply with your obligations under the Agreement as if no temporary adjustment had been made.

(e) There is no obligation for you to comply with the temporary adjustment under condition 6.5(b). You can continue to complete the Actions in your chosen Standards to the selected Level without complying with the temporary adjustment under condition 6.5(b).

(f) If you choose to comply with the temporary adjustment under condition 6.5(b), you must:

  (i) keep Records as set out in condition 20 to evidence your compliance with condition 6.5

  (ii) complete and retain a copy of the prescribed form we publish on GOV.UK under condition 6.5(c)(iii)

7. Change of Circumstances

7.1 What is a Change of Circumstances

A “Change of Circumstances” means something happens within or outside your control that might reasonably be expected to affect:

(a) your eligibility for the Grant;

(b) the Grant you should receive;

(c) your ability to complete the Actions in the Standards; or

(d) your ability to comply with these Terms and Conditions.

This is explained in the section ‘What happens if you cannot deliver your agreement, or your circumstances change’ in the Scheme Rules.

7.2 Notifying us of a Change of Circumstances

If condition 7.1 applies, you must notify us in writing as soon as reasonably practicable.

7.3 Action we may take when there is a Change of Circumstances

Where you have notified us about a Change of Circumstances, we may take one of the following actions:

(a) amend, remove or replace a condition subject to which the Grant is given either temporarily or permanently, including by varying the area of Agreement Land;

(b) amend, remove or replace the Standards, Levels or timescales either temporarily or permanently;

(c) reduce the Grant either temporarily or permanently;

(d) require you to repay some or all of the Grant already paid to you;

(e) terminate the Agreement before the Agreement End Date.

7.4 When we will notify you of our decision

We will notify you within a reasonable period of our “Decision” to take any of the actions under condition 7.3 and the reasons for it. At the same time, we will remind you of your rights to request a reconsideration under condition 14.

8. Transfers of Agreement Land

8.1 Transferring Agreement Land to another person or entity

(a) If you sell, lease or otherwise transfer all or part of the Agreement Land to another party or entity (the “Transferee”) during the Agreement Period so that you no longer have Management Control over all or part of the Agreement Land we will not usually allow you to transfer your Agreement to the Transferee.

(b) In the case of 8.1(a) you must notify us of your loss of Management Control of all or part of the Agreement Land (as set out in condition 3.3) using the procedure in condition 7 (Change of Circumstances).

(c) Where you notify us that there has been a Change of Circumstances under condition 8.1(a), we may agree, at our absolute discretion and in limited circumstances only, that you may transfer the Agreement to the Transferee provided the conditions laid out in regulation 12 of the Regulations are met.

9. Payments

9.1 Frequency of payments

The total annual Grant is divided into four (4) quarterly instalments, except that the SFI Management Payment will be paid as per the provisions set out in condition 9.5 below. The first instalment of the Grant will usually be made three (3) months after the Start Date of the Agreement if you have complied with the obligations under the Agreement. This is explained under the section about ‘When you will be paid’ in the Scheme Rules.

9.2 Where payments will be made

We will pay the Grant directly to your bank or building society account that is registered with us via BACS transfer, subject to the necessary funds being available when the payment falls due.

9.3 When payments may be delayed, reduced, recovered or withheld

We may delay, reduce, recover or withhold the payment of the Grant in whole or in part if you do not submit the Annual Declaration required under condition 5; and/or you breach your Agreement under condition 12.

9.4 Variation of payment rates

(a) As stated in the Scheme Information we do not expect to vary the Grant during the Agreement Period.

(b) However, we reserve the right, under exceptional circumstances not referred to elsewhere in these Terms and Conditions, to vary the Grant during the Agreement Period, in accordance with condition 6.4.

9.5 SFI Management Payment

(a) The SFI Management Payment will be paid for each hectare of Agreement Land, up to a maximum of fifty (50) hectares in the “Relevant Agreement”:

  (i) if you have entered one (1) Agreement, this will be the Relevant Agreement

  (ii) if you have entered more than one (1) Agreement, the Relevant Agreement will be the Agreement with the earliest Agreement Start Date

The section in the Scheme Rules about ‘Getting paid for an SFI standards agreement’ explains the value of the SFI Management Payment and how it works.

(b) If we take action under condition 7.3 and vary the area of Agreement Land in the Relevant Agreement during the Agreement Period, the SFI Management Payment will be paid on the basis of that varied area of Agreement Land, up to a maximum of fifty (50) hectares.

(c) The value of the SFI Management Payment will accrue from either:

  (i) 1 January 2023, if the Agreement Start Date for the Relevant Agreement was on or before 1 January 2023

  (ii) the Agreement Start Date for the Relevant Agreement, if it is after 1 January 2023

(d) The SFI Management Payment value will be based on the following:

  (i) in the first Agreement Year of the Relevant Agreement, the SFI Management Payment will be based on the value accrued from the applicable date determined in accordance with condition 9.5(c) until the end of the first Agreement Year.

  (ii) in each subsequent Agreement Year, the SFI Management Payment will be based on the value accrued from the first day of the relevant Agreement Year until the last day of the relevant Agreement Year.

  (iii) if the Relevant Agreement is terminated under condition 15 before the Agreement End Date, the SFI Management Payment will be based on the value accrued from the applicable date determined in accordance with condition 9.5(c) until the date of termination.

10. Undue payments or overpayments

10.1 Undue payments or overpayments

It is your responsibility to check all the payments of the Grant we make to you and to notify us within two (2) weeks of you becoming aware if you have any reason to believe an error has occurred. You must repay any overpayment or payment of the Grant to which you are not entitled (including due to our administrative error).

10.2 When a repayment must be made

Any sum that becomes repayable under condition 10.1 will be treated as a debt by you to us and if it is not repaid we may issue a recovery order in respect of it.

11. Checking you are complying with your Agreement

11.1 What we may check

We may check your compliance with the obligations under the Agreement, including that you are:

(a) complying with these Terms and Conditions; and

(b) achieving the aim of each Action in the Standards, by completing the Actions.

11.2 How we will check you are complying with your obligations under the Agreement

We will check you are complying with the obligations under the Agreement through a combination of physical and virtual site visits, remote monitoring, and desk-based administrative checks.  To help us do this, you must:

(a) for virtual or physical site visits:

  (i) allow a person authorised by us to carry out site visits and exercise powers of entry under the Regulations (‘Authorised Person’) access to any Agreement Land, premises, livestock, trees, crops, plants, machinery, equipment, documents or records (or any related apparatus) covered by the Agreement.  The Authorised Person may be accompanied by such other persons as they consider necessary; and

  (ii) provide any assistance reasonably requested by an Authorised Person.

(b) disclose all information or evidence that we may require to verify your continued eligibility for and compliance with the obligations under the Agreement.

The section about ‘Checking progress of your SFI standards agreement’ in the Scheme Rules explains how we will check delivery of your obligations under the Agreement.

11.3 How much notice we will give you of a site visit

We will endeavour to agree a suitable date and time for the site visit with you. Where it is not possible to agree a suitable date and time, we will notify you in writing of the purpose of the site visit and the date and time at least forty-eight (48) hours in advance of the site visit. Regulation 17 of the Regulations allow us to access your land at any reasonable hour without notice if, for example, we have a reasonable suspicion that you have committed a serious breach, fraud or any other related offence.

11.4 What we may do during a site visit

Regulation 18 of the Regulations explains what an Authorised Person can do during a site visit.

12. A breach of your Agreement

12.1 What happens if we suspect there may have been a breach of your Agreement

(a) Where we reasonably suspect you have breached the Agreement, we will carry out a proportionate investigation. We explain what happens if we suspect a breach of the Agreement in the section ‘What happens if there is a suspected breach’ in the Scheme Rules.

(b) If we reasonably suspect you have breached the Agreement, we may withhold the Grant until such investigation is concluded, however we will not usually do this.

(c) We will inform you of the outcome of the investigation carried out under condition 12.1(a) within a reasonable period.

12.2 How you could breach your Agreement

After we carry out a proportionate investigation, we may make a “Determination” that you have breached the Agreement if any of the following applies:

(a) you have not notified us of a Change of Circumstances under condition 7;

(b) you have, at any time, given us false or misleading information;

(c) you have used the Grant for a purpose that is not in accordance with the Agreement;

(d) you have used the Grant for activities that breach any Law with which you are required to comply;

(e) you have failed to comply with the terms of your Agreement;

(f) you have breached any requirement to which you are subject under the Agriculture (Financial Assistance) Regulations 2021;

(g) you have failed to provide information, records or evidence required under condition 20;

(h) you have prevented an Authorised Person from carrying out a virtual or physical site visit of the Agreement Land;

(i) you have refused to provide assistance reasonably requested by an Authorised Person carrying out a virtual or physical site visit of the Agreement Land;

(j) you have otherwise obstructed a virtual or physical site visit of the Agreement Land; or

(k) you have failed to prevent or report actual or anticipated fraud or corruption in relation to the Grant.

12.3 A breach caused by your employees or agents

The circumstances described in condition 12.2(b) to condition 12.2(j) apply, where appropriate, to any action taken by your employees or agents.

12.4 What happens if we determine there has been a breach

If we make a Determination that you have breached the Agreement, we will write to inform you of this within a reasonable period. We will give you the reasons for this Determination. We will then decide what action needs to be taken, if any. We explain what happens if we determine you have breached the Agreement in the section about ‘What happens if a breach is confirmed’ in the Scheme Rules. You may respond to any Determination in accordance with condition 14.

12.5 Actions we may take if you breach your Agreement

(a) There are no set actions for particular breaches of the Agreement, and we will assess all the circumstances of a breach in a fair and consistent manner, on a case-by-case basis and take the action(s) we think is/are appropriate. This is explained in the section ‘What action we may take when there is a breach’ in the Scheme Rules.

(b) If we make a Determination that you have breached the Agreement, we may take any of the following actions:

  (i) issue you with a warning letter;

  (ii) amend, remove or replace a condition subject to which the Grant is given either temporarily or permanently;

  (iii) amend, remove or replace the Standards, Levels or timescales either temporarily or permanently;

  (iv) allow you to rectify the breach;

  (v) delay, reduce, recover or withhold payment or require repayment of all or part of the Grant;

  (vi) terminate the Agreement before the Agreement End Date; or

  (vii) prohibit you from receiving financial assistance from other financial assistance schemes under the Agriculture Act 2020 for a period of up to two (2) years from the day after we notify you of the Determination on the breach.

12.6 Repayment if there has been a breach

If we require you to repay all or part of the Grant under condition 12.5, then you must do so within sixty (60) days of the date of our demand for repayment. If you fail to repay the requested amount within sixty (60) days of our demand, then that sum will be recoverable as a civil debt with interest. Our right to recover under condition 12.5 extends to the whole of the Grant paid to you in the Agreement Year or Agreement Years to which the Determination relates under condition 12.2.

13. Good reasons for a breach

13.1 What are good reasons for a breach

We understand that there may be circumstances (a “Good Reason”) where you are in breach of the obligations under the Agreement because of events outside of your control.

(a) Good reasons for a breach of the Agreement include, but are not limited to:

  (i) natural events, such as prolonged adverse weather conditions, flooding, or animal or plant disease

  (ii) if you are seriously ill

  (iii) if you die

  (iv) if there is unforeseen loss of Management Control of the Agreement Land, for example when a tenancy is terminated, or because of the compulsory purchase of land by a third party

  (v) financial circumstances, such as bankruptcy

  (vi) evidenced supply chain problems, such as a lack of soil testing capacity

  (vii) criminal damage by a third party, such as arson or vandalism

(b) We explain what good reasons for a breach could include in the section ‘Good reasons for a breach’ in the Scheme Rules.

13.2 Notifying us about a good reason for a breach

(a) If condition 13.1 applies, you (or any person authorised to act for you) must notify us in writing to explain the Good Reason.

(b) If the Good Reason relates to a breach of the Agreement under condition 12.2(h), condition 12.2(i) or condition 12.2(j), you must notify us in writing immediately.

(c) In all other cases, you must notify us in writing within eight (8) weeks from:

(i) the date you are able to; or

(ii) the date we notify you of the Determination on the breach of the Agreement.

14. Reconsideration of Decisions and Determinations

14.1 How to ask us to reconsider a Decision or Determination

If you would like us to reconsider any Decision (for a Change of Circumstances under condition 7) or Determination (for a breach of the Agreement under condition 12) that we have made, you should use our complaints procedure to ask for it to be reconsidered.

14.2 When to ask us to reconsider a Decision or Determination

You must ask us to reconsider any Decision or Determination within sixty (60) calendar days of the date you are notified about our Decision or Determination.

14.3 How we will reconsider a Decision or Determination

We will consider your request to reconsider our Decision or Determination carefully, including any information or evidence you have provided to us. We will confirm the outcome of our reconsideration, with reasons, in writing within a reasonable period.

14.4. How to appeal the outcome of a reconsideration

You may appeal the outcome of our reconsideration of our Decision or Determination within sixty (60) calendar days of the date you are notified of that outcome where you believe the outcome of our reconsideration:

(a) was based on an error of fact;

(b) was wrong in Law; or

(c) there has been a material procedural error.

14.5 When we will confirm the outcome of your appeal

We will confirm the outcome of your appeal under condition 14.4 within a reasonable period in writing explaining the reasons for this outcome, and this will be our final determination.

15. Termination of an Agreement

15.1 When we may terminate your Agreement

We may terminate the Agreement before the Agreement End Date on written notice to you:

(a) if there has been a Change of Circumstances under condition 7 meaning you are no longer eligible to receive the Grant;

(b) if you have breached the Agreement under condition 12;

(c) if you have not repaid to us a sum that has become recoverable under condition 12 or condition 10; and

(d) at any time on at least six (6) months’ written notice to you.

15.2 What happens if we terminate your Agreement

(a) Where we terminate the Agreement under condition 15.1(a) or 15.1(b), you may be required to repay some or all of the Grant already paid to you.

(b) Where we terminate the Agreement under condition 15.1(d), you will be able to keep the Grant already paid to you, provided you are not in breach of the Agreement.

15.3 What happens if you want to terminate your Agreement

(a) We will not usually allow you to terminate your Agreement before the Agreement End Date.

(b) If you want to terminate your Agreement before the Agreement End Date, you must write to us to request this and explain (providing supporting evidence) why you wish to do so.

(c) We will consider requests under condition 15.3 on a case-by-case basis and may allow the request if there is a Change of Circumstances (condition 7). We will inform you of our decision within a reasonable time period.

(d) If we agree to terminate your Agreement before the Agreement End Date, you may be required to repay all or part of the Grant for the relevant Agreement Year or Agreement Years, and you will remain bound by the relevant obligations under the Agreement until you make this repayment.

(e) Condition 15.3(d) does not apply to condition 6.4.

15.4 This Agreement will terminate in the event of your death if you have entered this Agreement in your own name as an individual.

16. Consequences of expiry or termination of your Agreement

16.1 If we or you terminate the Agreement, or the Agreement expires on the Agreement End Date, this will not affect the rights, remedies, obligations or liabilities that either of us have accrued up to the point of termination or the Agreement End Date.

16.2 Termination or expiry of the Agreement will not affect our or your continuing rights and obligations under any condition in the Agreement which is intended to continue beyond the Agreement Period.

17. Intellectual property rights

17.1 We don’t anticipate that any new intellectual property rights will be created as part of these arrangements but if any intellectual property rights are created (for example in assessments, plans and data generated in relation to this Agreement) then this will be owned by the party who created it.  We may need to use any intellectual property created by you for the purposes of the Agreement and you hereby grant us a perpetual, non-exclusive, royalty free licence to do so for use in connection with the Agreement.

18. Data protection

18.1 We and you must always comply with our respective obligations under “Data Protection Legislation”. We may be required to provide personal information to Defra. We also are required by law to publish certain information about you, this is described in condition 21. Data Protection Legislation means (a) the UK GDPR, (b) the Data Protection Act 2018 to the extent that it relates to processing of personal data and privacy and (c) all applicable Law about the processing of personal data and privacy.

18.2 For information on how we handle personal data search for ‘Rural Payments Agency Personal Information Charter’ and our Privacy Policy on GOV.UK.

19. Freedom of information

19.1 You acknowledge that we are subject to the requirements of the Freedom of Information Act 2000 (“FOIA”) and the Environmental Information Regulations 2004 (“EIR”).

19.2 We may need to share information we hold about you or the Agreement so we or Defra can comply with any FOIA and EIR request. The extent, content and format of the information we disclose is our decision. In making any disclosure, we will have due regard to Data Protection Legislation.

19.3 You will provide all necessary assistance and cooperation which we or Defra reasonably request for the purposes of complying with our obligations under FOIA and EIR within a time period specified by us. You must tell us as soon as reasonably practicable if you receive a FOIA or EIR request intended for us or Defra.

20. What accounts and records you must keep

20.1 You must keep all invoices, receipts, accounts and any other relevant documents relating directly to the expenditure of the Grant and evidence of your compliance with your obligations under the Agreement (“Records”). The Records include evidence you must keep as explained for each Action in the Standards.

20.2 You must keep your Records for a period of at least seven (7) years from termination of the Agreement or the Agreement End Date.

20.3 You must prepare and keep your Records in compliance with Law and must provide assistance to us when we are auditing or examining these so as to help us carry out our legal obligations.

20.4 We have the right to:

(a) request you to provide your Records to us

(b) review your Records

(c) take copies of such Records.

20.5 You must provide your Records to us upon request. In addition, you shall provide the Records to any other duly authorised public authority (or their authorised representatives or auditors) upon request.

21. What information we may publish about you

21.1 We are required by Law to publish certain specified information about agreement holders who have received relevant Grant payments.

21.2 Condition 21.1 only applies if you have received a total value of relevant payments (as defined in the Regulations) equal to or more than £1,250 in the relevant financial year.

21.3 The specified information shall:

(a) be published on a searchable database on GOV.UK; and

(b) remain on that searchable database for three (3) years from initial publication.

21.4 If condition 21.1 applies to your Grant, we will publish the following specified information:

(a) your full name;

(b) the post town, and post code and district where:

  (i) you are resident, if you are a natural person;

  (ii) your registered office is located, if you are incorporated (for example, a company); or

  (iii) your primary base of business is located, if you are unincorporated (for example, a sole trader).

(c) the total Grant payments received by you in the relevant financial year; and

(d) a description of the activities financed by the Grant payments.

22. Other Terms

22.1 We may transfer the Agreement to another public organisation

We may transfer our rights and obligations to another Government body.  We will tell you in writing if this happens and we will ensure that the transfer will not affect your rights under the Agreement.

22.2 Third party rights under this Agreement

The Agreement is between you and us. No other person shall have any rights to enforce any of its terms, however, the terms of the Agreement and our rights under it may be enforced by Defra.

22.3 If a court finds part of the Agreement illegal, the rest will continue in force

Each of the conditions of these Terms and Conditions operates separately. If any court or relevant authority decides that any of them are unlawful, the remaining conditions will remain in full force and effect.

22.4 Even if we delay in enforcing the Agreement, we can still enforce it later

If we do not insist immediately that you do anything you are required to do under the Agreement, or if we delay in taking steps against you in respect of you breaching the Agreement, that will not mean that you do not have to meet your obligations under this Agreement and it will not prevent us taking actions against you, as described in these Terms and Conditions, at a later date.

22.5 Which laws apply to this Agreement and where you may bring legal proceedings

The Agreement is governed by English law and you can only bring legal proceedings in respect of this Agreement in the English courts.

Glossary

Capitalised terms used in these Terms and Conditions have specific meanings which are described below:

Actions

The actions that are part of each Standard you have chosen.

Agreement

The SFI standards agreement consisting of the Agreement Document, these Terms and Conditions, and the Standards you have chosen.

Agreement Document

The document accompanying these Terms and Conditions, which describes the Grant to be paid to you for delivering the chosen standard(s) to the level you have selected.

Agreement End date

The date the Agreement comes to an end, as shown in your Agreement Document.

Agreement Land

The land parcels described in the Agreement Document.

Agreement Period

A period of three (3) years from the Agreement Start Date to the Agreement End Date.

Agreement Start Date

The date the Agreement commences, as shown in your Agreement Document.

Agreement Year

Each subsequent 12-month period following the Agreement Start Date.

Annual Declaration

A declaration confirming that you have complied, or expect to have complied, with your obligations under the Agreement for the relevant Agreement Year.

Authorised Person

A person authorised by us to carry out site visits and exercise powers of entry under the Regulations.

Change of Circumstances

Means something happens within or outside your control that might reasonably be expected to affect:

(a) your eligibility for the Grant;

(b) the Grant you should receive;

(c) your ability to complete the Actions in the Standards; or

(d) your ability to comply with these Terms and Conditions.

Common Land

As defined in the section of the Scheme Rules on ‘Eligibility of commons and shared grazing for an SFI standards agreement’.

Data Protection Legislation

This means:

(a) the UK GDPR;

(b) the Data Protection Act 2018 to the extent that it relates to processing of personal data and privacy;

(c) all applicable Law about the processing of personal data and privacy.

Decision

Our decision following notification to us of a Change of Circumstances.

Defra

Department for Environment, Food and Rural Affairs.

Determination

Our determination following a breach by you of the Agreement.

Due Date

The date by which you must submit your Annual Declaration.

EIR

Environmental Information Regulations 2004.

FOIA

Freedom of Information Act 2000.

Grant

The sum to be paid to you for delivering the Standards, as described in the Agreement Document.

Law

Any law, statute, subordinate legislation within the meaning of Section 21(1) of the Interpretation Act 1978, bye-law, right within the meaning of Section 4(1) EU Withdrawal Act 2018 as amended by EU (Withdrawal Agreement) Act 2020, regulation, order, regulatory policy, mandatory guidance or code of practice, judgement of a relevant court of law, or directives or requirements of any regulatory body with which you are required to complete comply.

Level

The level you have selected to deliver your chosen Standards to, as referenced in your Agreement Document and supplemented by the Scheme Information.

Management Control

Having sufficient control over how the Agreement Land is managed to complete the Actions in the Standards at the Level you have chosen for the duration of the Agreement Period.

Regulations

The Agriculture (Financial Assistance) Regulations 2021, as amended.

Scheme Information

Information we have published on GOV.UK in relation to SFI, which includes:

(a) the Standards;

(b) the Scheme Rules; and

(c) other scheme information and guidance which is there to help you, but you do not have to follow.

Scheme Rules

Rules in the Scheme Information that further explain the mandatory requirements of your Agreement.

SFI

Sustainable Farming Incentive.

SFI Management Payment

An amount to be paid to you for entering into and implementing your SFI standards agreement.

Shared Grazing

As defined in the section of the Scheme Rules on ‘Eligibility of commons and shared grazing for an SFI standards agreement’.

Standards

The chosen standard(s) to be delivered to the level you have selected.

UK GDPR

The retained EU law version of the General Data Protection Regulation (Regulation (EU) 2016/679), as transferred into UK Law by the Data Protection, Privacy and Electronic Communications (Amendments etc) (EU Exit (Regulations (SI 419/2019) and any applicable national implementing Laws as amended from time to time.