Welsh farmers offered simpler scheme to boost sustainability and nature
Farmers across Wales will benefit from the new Sustainable Farming Scheme (SFS), announced by the Welsh Government today.
The scheme aims to secure the future of food production while protecting the environment, tackling climate change, and restoring nature.
Deputy First Minister Huw Irranca-Davies said the scheme is “a product of extensive collaboration” with farmers and represents “a new relationship between the people of Wales and our farmers.”
Replacing the Basic Payment Scheme (BPS), the SFS will begin on 1 January 2026. Applications for the Universal layer will open via the Rural Payments Wales online system from March to 15 May each year.
The scheme is designed to be simpler and more accessible, with 12 Universal Actions required to receive baseline payments. These include soil health testing, integrated pest management, habitat and woodland maintenance, hedgerow management, and animal health monitoring.
Farmers must manage at least 10% of their land as habitat to support biodiversity and nature recovery. They will also develop a carbon baseline to measure environmental impact.
The Welsh Government has committed £238 million for Universal Payments in 2026, matching the current BPS budget to provide financial stability and encourage participation.
Additional funding will support Optional and Collaborative Actions, such as tree and hedgerow planting, aimed at improving farm productivity and environmental outcomes.
Deputy First Minister Irranca-Davies said: “This is not just a Scheme for farmers, this is a Scheme for the whole of Wales – A whole farm, whole nation approach. Our ambition is to see a thriving and confident agriculture industry in Wales, built around innovation and growth.”
The Basic Payment Scheme will be phased out over four years, tapering from 60% of current payments in 2026 to zero by 2029.
Farmers are encouraged to familiarise themselves with the Universal Actions and ensure farm records and mapping are up to date ahead of the application window.
The Country Land and Business Association (CLA Cymru), which helped shape the scheme, is providing guidance and one-to-one support to farmers for a smooth transition.
Plaid Cymru’s spokesperson for Agriculture and Rural Affairs, Llyr Gruffydd MS, welcomed improvements in the scheme but called for longer-term funding certainty. He said: “A one-year pledge is simply not enough. A Plaid Cymru government would maintain this level of funding in real terms as an absolute minimum, and crucially, as part of a multi-annual funding cycle. That is the only way to provide farmers with the longer term certainty they need.”
Welsh Conservative Shadow Cabinet Secretary for the Economy and Rural Affairs, Samuel Kurtz MS, said concerns remain about the scheme’s economic impact and future funding. He commented: “Without an accompanying economic impact assessment, we are still in the dark about the real-world consequences of Labour’s scheme, there is a lack of clarity and security around future funding and without a vote in the Senedd, the new scheme lacks democratic legitimacy.”
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