Rural Labour MPs have expressed strong dissatisfaction with the government’s handling of a £253 million funding scheme intended to support environmentally friendly farming practices, following the scheme’s abrupt closure just six hours after opening. The rapid closure of applications for the Sustainable Farming Incentive (SFI) on Tuesday has prompted criticism from several Labour backbenchers and farming groups, who argue the allocation process was poorly managed and that insufficient funds were made available.

The SFI funding window opened at 10 a.m. and closed by 4 p.m., a timetable acknowledged by Stephen Morgan, the farming minister, as likely to leave many farmers disappointed. The scheme aims to compensate farmers for adopting environmentally sustainable methods on their land. However, some MPs and farmers said the speed with which funds were exhausted indicates that the government’s support for British farms remains inadequate—particularly in the wake of recent tax changes affecting family farms.

In private WhatsApp messages circulating among Labour MPs, several voices condemned the scheme’s rollout. David Smith, MP for North Northumberland, described it as an “utter joke” characterized by a first-come, first-served approach. Michelle Scrogham, representing Barrow and Furness, likened the administration to a poorly run festival ticket sale, while Alison Hume from Scarborough and Whitby reported intense frustration from constituents, who felt “sold down the river.” Josh Newbury, MP for Cannock Chase, echoed criticisms from Conservative backbenchers, suggesting that Whitehall officials were disconnected from rural realities.

The controversy follows significant unrest in rural Labour constituencies linked to the party’s 2024 abolition of a longstanding inheritance tax exemption for agricultural land. Initially set at a 20 percent levy on farm assets valued over £1 million, the threshold was later increased to £2.5 million after widespread protests, including demonstrations featuring tractors in central London. Polls earlier this year suggested Labour risked losing rural seats due to the backlash.

Amid ongoing criticism, Andy Burnham, a senior Labour figure, has indicated a willingness to reconsider the family farm tax policy. During the Makerfield by-election campaign, Burnham acknowledged the need to “hear [farmers’] voices” and suggested revisiting the proposal, although a government minister recently reaffirmed that the tax strikes a necessary balance between supporting farms, businesses, and public services.

This is not the first instance of contention surrounding the SFI. Last year, the scheme was closed unexpectedly to new applicants without notice. When applications later reopened, funding caps were introduced, restricting eligibility largely to smaller farms under a certain acreage. Morgan defended these measures, noting that previously a quarter of all SFI funding had been claimed by just 4 percent of farms. He stated that government efforts aim to create a fairer system, prioritizing smaller and newer farms.

Morgan also committed to working closely with farmers to address concerns following this year’s funding window and suggested exploring alternatives to the first-come, first-served application process for future rounds of the scheme. The episode underscores ongoing tensions within Labour over rural policy and the challenges of balancing environmental objectives with the economic realities faced by family farms.