FARMING AND COUNTRYSIDE PROGRAMME

Rating: Compared to financial year 24/25 Q4, the NISTA/SRO Delivery Confidence Assessment (DCA) rating at 25/26 Q4 remained at Red. The issues that drove the original Red rating have largely been resolved. Policy is now stable, a credible delivery pathway is in place, and delivery confidence has been strengthened through the successful launch of Capital Grants, completion of applications for customers affected by the closure of SFI24, progress on the Countryside Stewardship offer and a Spending Review settlement that supports risk management and stakeholder engagement. FCP remains at Red due to a new set of issues identified through a NISTA-style review in Q1 and Q2 of 25/26. This found scope had expanded beyond the original programme remit, with blurred boundaries between transformation and business-as-usual leading to spend on activities outside the programme. These issues have also now been substantially addressed. Scope has been reset to focus on delivery of ELM schemes in 2026 and the design and establishment of the underpinning digital service. Accountability has been clarified including through the creation of the Farming Directorate (FD) which is now responsible for the farming budget and ongoing scheme management post programme closure. Digitally-enabled transformation of farming grant and scheme services will be delivered through a separate programme. This will ensure it is equipped with the tailored tools, approaches and accountabilities it needs to succeed. Consequent to progress made, an independent NISTA-style review scheduled for April 2026 is expected to support a change to our DCA category.

Schedule: Compared to financial year 24/25-Q4, the project's end-date at 25/26-Q4 remained the same at 31/12/2028. While the programme remains at RED, this has not impacted the programmes end date. Following the revised scope for the remainder of the GMPP scope delivery, we now have a more defined path to AMBER which will ensure the programme delivery remains on track to deliver to schedule.

Cost: Compared to financial year 24/25-Q4, the project's departmentally agreed Whole Life Cost at 25/26-Q4 (measured in £m) remained at 24,875. The costs are split into two main sections, payments to beneficiaries (scheme costs) and the costs of delivering those schemes together with policy and programme support (administrative costs). Both are linked to SR25 settlements.

Source: NISTA Major Projects Annual Report 2025-26 (data)

Rating: Compared to financial year 23/24-Q4, the Infrastructure Project Authority's Delivery Confidence Assessment rating at 24/25-Q4 decreased from AMBER to RED. Delivery risk continued to rise. The closure of the Sustainable Farming Initiative (SFI) to new applicants disrupted delivery timelines. Defra were unable to re-plan with confidence until the funding position was clarified through Spending Review Phase 2 (SR2). There was no longer a plausible pathway to the scheme uptake and outcomes set out in our Programme Business Case (PBC). The PBC assumed a higher level of funding and uptake than was expected in April 2025, particularly for SFI. Farmers’ willingness to participate in schemes was harder to predict at that point because of recent external factors such as the impact of inheritance tax changes and the closure of the 2024 SFI scheme to new applicants in March 2025; and there was uncertainty over when Countryside Stewardship Higher Tier (CSHT) would be delivered. More broadly, the wider strategic context within which the Programme is operating has also shifted significantly and isn’t expected to settle until later in the year pending publication of the Food Strategy, the revised Environmental Improvement Plan, the Land Use Framework and the Farming Roadmap. Defra is working closely with NISTA to shape our next steps, including the development of a targeted remediation plan in order to address residual concerns underpinning this assessment and cement a pathway back to AMBER. Some key upcoming developments in the coming months which would help address some of the issues regarding delivery confidence, stakeholder concerns and the willingness of farmers to participate in schemes would include: • a positive SR2 settlement for the Programme that clarifies the funding position and provides a basis for improved management of the funding risk and related stakeholder concerns • successful reopening of the Capital Grants offer, evidenced by the demand levels for that scheme • successful delivery of SFI 2024 and management of the cohort who were unable to complete an application prior to the scheme closing • clearer communications about when the Countryside Stewardship Higher Tier scheme would open.

Schedule: Compared to financial year 23/24-Q4, the project's end-date at 24/25-Q4 remained at 31/12/2028. The change of Programme status from Amber to Red has not impacted the projects end date. A remediation plan is being put in place to ensure that the programme remains on track to deliver to schedule.

Cost: Compared to financial year 23/24-Q4, the project's departmentally agreed Whole Life Cost at 24/25-Q4 (measured in £m) remained at 24875. The costs are split into two main sections, payments to beneficiaries (scheme costs) and the costs of delivering those schemes together with policy and programme support (administrative costs). The value of the scheme costs will be linked to the definition of the manifesto commitment to guarantee the current annual budget to farmers in every year of this Parliament.

Source: NISTA Annual Report 2024-25 (data)

Rating: Compared to financial year 22/23-Q4, the Infrastructure Project Authority's Delivery Confidence Assessment rating at 23/24-Q4 remained at Amber. This is primarily due to the following factors. Programme remains deliverable with majority of critical outcomes on track and expected challenges being managed._x000D_ We've:_x000D_ _x000D_ . Opened Countryside Stewardship 2024 Mid-tier scheme for agreements starting in January 2024 and the CS Facilitation Fund opened in October._x000D_ . Invited 374 projects to submit Slurry Infrastructure Grant full applications and funding approved for Phase II of the Slurry Investment fund._x000D_ . Launched Water Management grants round 2 scheme._x000D_ . 22 projects in Landscape Recovery Round 1 had grant agreements and moved into the 2-year Project Development phase. Round 2 was launched with 34 successful applications._x000D_ . Since opening for applications, the Sustainable Farming Incentive (SFI) has received 17,466 applications and issued 16,160 agreement offers. We have exceeded our central scenario for the number and value of applications during the financial year.

Schedule: Compared to financial year 22/23-Q4, the project's end-date at 23/24-Q4 remained schedule to finish on 2028-12-31. This is primarily due to the following factors. The department continues to deliver the planned reforms and although some changes to plans have been made as part of our test and learn approach, delivery is on track for the critical path milestones, costs and benefits.

Cost: Compared to financial year 22/23-Q4, the project's departmental-agree Whole Life Cost at 23/24-Q4 remained at 24875m. This is primarily due to the following factors. The costs are split into two main sections, payments to beneficiaries (scheme costs) and the costs of delivering those schemes together with policy and programme support (administrative costs).The value of the scheme costs will be linked to the definition of the manifesto commitment to guarantee the current annual budget to farmers in every year of this Parliament.

Source: IPA Annual Report 2023-24 (data)