“When assessing comparative budgets for both my organic dairy clients and conventional clients for the 12 months to 31st March 2027, it is becoming quite stark in regard to how the relative profitability levels of each system are diverging. Is this just a short term difference or will the gap between systems become sustained in terms of profit levels. It has led me recently to consider whether more businesses should be looking at organic conversion currently.”
Amongst the recent SFI announcements and all the headlines being reported, hidden in the detail are options which relate to organic conversion and payments for the organic maintenance of land. It’s been almost a year now whereby there have been no conversion payments for any business seeking to convert land areas to organic production, but the recent SFI announcements have hidden within the detail some quite lucrative conversion grant payments. For example, for businesses looking to convert rotational “arable” land to organic, there is a payment of £298
/hectare per year for two years; likewise, for “Improved” permanent grassland the payment is £187/hectare for two years. These rates are considerably up on the previous conversion incentive payments that have been available for many years prior to the closure of SFI In 2025. In addition to the conversion payments there are maintenance payments ongoing for the duration of the grant agreement for converted land of £132/hectare for rotational land and £20/hectare for improved permanent grassland. These payment levels do not include any additional SFI options or even CSS options that could be stacked on this land area. For instance, additional payments for herbal lays or low input grassland can be stacked on these land areas.