The changes mean farmers could receive up to a further £1,000 per year for taking nature-friendly action through the Sustainable Farming Incentive (SFI).

This new Management Payment will be made for the first 50 hectares of farm (£20/ha), to cover the administrative costs of participation. SFI is already paying farmers to improve soil and moorlands, and an expanded set of standards for 2023 will be published shortly.

The announcement follows a joint letter to Rishi Sunak in November urging him not to backtrack on reforms to agriculture policy that are designed to help farmers improve the environment and nature.

Farmers with a Countryside Stewardship (CS) agreement will also see an average increase of 10 per cent to their revenue payment rates – covering ongoing activity such as habitat management.

Defra is also updating capital payment rates, which cover one-off projects such as hedgerow creation, with an average increase of 48 per cent.

The changes are...