Welsh Gov unveils final Sustainable Farming Scheme amid mixed industry reaction
Welsh Gov unveils final Sustainable Farming Scheme amid mixed industry reaction
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The Welsh Government has officially released the final scheme description for the Sustainable Farming Scheme (SFS), set to launch on 1 January 2026, marking what ministers describe as a “landmark moment” for Welsh agriculture. The scheme is designed to support food production while enhancing environmental sustainability and building resilience in the face of climate change.
Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs, Huw Irranca-Davies, hailed the scheme as a “new agreement between the people of Wales and our farmers,” underpinned by a framework of Universal, Optional, and Collaborative Actions. He confirmed a £238 million budget for the scheme’s launch year, with a phased transition from the current Basic Payment Scheme (BPS).
Following backlash during the consultation phase, the government has dropped its controversial 10% mandatory tree cover requirement, replacing it with voluntary tree and hedgerow planting plans backed by flexible incentives. The BPS will be reduced to 60% of current payment levels in 2026, with further reductions expected, signaling a sharper transition than previously promised.
The government intends to shift more funding over time toward Optional and Collaborative Actions, which it says are key to meeting climate and biodiversity goals.
While acknowledging improvements in the scheme design, NFU Cymru said the government’s decision to slash BPS support by 40% in the first year of transition “overshadows” progress and could leave many farmers “between a rock and a hard place.”
NFU Cymru President Aled Jones said: “This unwelcome decision is extremely worrying… many farmers will not be able to pivot their business to join the new scheme from January.”
NFU Cymru welcomed some changes, including removal of the 10% tree requirement and better recognition of tenant and common landholders, but warned of excessive administrative burden, lack of detailed guidance, and absence of an economic impact assessment.
The Welsh Conservatives echoed these concerns. Shadow Rural Affairs Secretary Samuel Kurtz MS criticised the lack of transparency and questioned the scheme’s legitimacy without a Senedd vote or accompanying economic analysis.
“We are still in the dark about the real-world consequences of Labour’s scheme,” said Kurtz.
Plaid Cymru’s Llyr Gruffydd MS acknowledged that the final scheme is a “clear improvement” and praised the role of industry engagement. However, he called for multi-annual funding commitments beyond 2026 and urged clarity on long-promised elements like social value payments and budget allocations across the scheme tiers.
“A one-year pledge is simply not enough… farmers need longer-term certainty,” Gruffydd said.
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