Last Updated on October 28, 2025 by Sophie Wilesmith
With delinked payments set to be capped at just £600 in 2026 and 2027, a 98% reduction from previous support levels, many farmers are facing a sharp drop in income as direct payments are phased out.
At the same time, delays to Sustainable Farming Incentive (SFI) payments caused by processing errors are adding to frustration and financial uncertainty. The Rural Payments Agency (RPA) is reportedly rechecking historical land features against current SFI applications, creating hold-ups for agreements involving SAM3 (herbal leys) and NUM2 (legumes on improved grassland) and potentially disrupting quarterly payments. For farmers trying to plan ahead, it’s a system that simply doesn’t add up. In this landscape, resilient, low-input crops like Miscanthus are emerging as a more reliable route to returns and environmental delivery.
For less productive land that delivers lower yields, or where the only return anticipated was via subsidy or environmental scheme, this shift is particularly stark. Farms cannot simply wait for government support to maintain land value or generate returns. They must adopt enterprise models that are both commercially robust and environmentally sound.
Enter Miscanthus, a perennial biomass crop designed for low-input, long-term production that offers a viable alternative to both subsidies and ‘marginal’ cropping. Because Miscanthus is grown for its biomass rather than food production, it allows farmers to utilise less productive land, reduce fertiliser reliance, and generate a long-term commercial return without depending on waiting and hoping for scheme payment.
In contrast to traditional annual crops that often require high fertiliser inputs, frequent cultivation and variable yields, Miscanthus offers a stable platform: once established, it delivers multiple years of biomass harvests, improves soil structure and carbon storage, and aligns with environmental objectives. For farmers facing uncertain scheme payments, this can make all the difference.
Why Miscanthus offers real resilience
• Low-input model: Fewer fertiliser requirements, less machinery use, less annual disturbance.
• Long-term cropping: Once planted, the crop remains for 15-20 years + reducing the annual yield risk and the need for repeated establishment.
• Environmental alignment: It contributes to carbon sequestration, biodiversity, and land-use flexibility better suited for today’s regulatory and subsidy environment.
• Commercial return: Instead of relying on payment schemes, farmers can contract biomass offtake on long-term contracts with Terravesta, generating revenue aligned to long-term supply chains rather than short-term subsidies.
If the SFI delay and era of subsidy-dependent agriculture have taught us anything, it is this: You cannot wait for government schemes to pay the bills. You cannot bank on slow-moving administration or policy changes to unlock returns from land that under-performs. Instead, you can build enterprises that stand on their own commercially while delivering environmental benefit.
Miscanthus offers precisely that: a crop that turns marginal land into a commercially viable asset, aligns with growers’ environmental responsibilities, and reduces exposure to subsidy uncertainty. For farmers ready to adapt, that could mean picking up a new enterprise rather than waiting for the next payment window to open.
In uncertain times, a low-risk, future-aligned crop may be the best option.
