1- “This is a Scheme for the whole of Wales – A whole farm, whole nation approach” – Deputy First Minister, Huw Irranca-Davies.

Welsh farmers will benefit from a new partnership with the people of Wales that supports sustainable food production and responds to the climate and nature emergency, under the Sustainable Farming Scheme published today.

The Scheme is designed to secure the future of food production while also protecting the environment for generations to come. It recognises farming's vital role in Welsh communities and culture and addresses challenges like climate change and restoring nature.

Deputy First Minister with responsibility for Climate Change and Rural Affairs, Huw Irranca-Davies said:

"This Scheme is the product of extensive collaboration. We've listened carefully to farmers across Wales and revised our approach to ensure it works for the agricultural industry and meets our shared responsibilities to the natural world around us.

“I would like to thank those who responded to consultations and attended meetings the length and breadth of Wales, and I’m grateful to all members of the Ministerial Roundtable and supporting Working Groups for their input.

“We’ve listened, and we’ll continue to listen. It’s clear that the people of Wales want us to back Welsh farming, but they also want to see nature restored, soils protected, water quality in our rivers improved, access to the countryside maintained and nature supported to recover and thrive.

“With this in mind, the Scheme represents a new relationship between the people of Wales and our farmers. This is not just a Scheme for farmers, this is a Scheme for the whole of Wales – A whole farm, whole nation approach.

"We recognise this involves change. This Scheme is fundamentally different from the Basic Payment Scheme, but absolutely necessary for the long term success of farming, food production and the environment.”

The Scheme will work as follows:

The Sustainable Farming Scheme will begin on 1 January 2026 with the application form for the Universal layer of the scheme being available on the Single Application Form (SAF) via Rural Payments Wales (RPW) Online from March through to 15 May each year.

* An annual Universal Payment will go to farmers joining the Scheme who follow the Scheme Requirements including a set of Universal Actions . Many of these actions will be familiar to farmers in Wales, whether beef, dairy, arable, upland, lowland, extensive or intensive.
* The Scheme has been made less complex with fewer administrative requirements. The number of Universal Actions has been cut and built on the tried and tested processes and systems of Rural Payments Wales (RPW).
* The combination of the Universal, Optional and Collaborative layers provides a long-term stable framework to support sustainable farming in Wales. It gives stability through the Universal layer, and additional support to those who want to do more through Optional and Collaborative Actions.
* All farmers entering the Scheme will need to complete an opportunity plan for woodland and hedgerow creation in the first year of entry into the Scheme. They will need to demonstrate progress towards their plan by the end of the 2028 scheme year.
* Generous support will be provided for tree and hedgerow planting in the Optional Layer, including for agroforestry, and there will be a higher payment rate for tree planting during the first 3 years of the Scheme.
* Farmers are not expected to plant trees on their most productive land – they will decide where to plant, with clear advice and guidance to ensure the right tree in the right place.
* Farmers in the Scheme will need to have at least 10% of their land actively managed as habitat, to benefit biodiversity and support nature recovery alongside food production. A range of temporary habitat options are available to choose from if farmers need to do more to meet the 10% requirement.

The Welsh Government has given substantial funding to provide stability for the farming sector over many years, and we will continue to do so. We have committed the equivalent of this year’s BPS budget to the Universal Payments in 2026 (£238m for 2026 Universal and BPS payments) to provide financial stability to farmers and an incentive to join the SFS.

A significant budget will be provided for Optional and Collaborative Actions, building on the Preparatory Phase Schemes available this year. This will provide further income for farmers and support them to improve their productivity, plant trees and hedges where they benefit the farm and improve or create new areas of habitat.

By the time of the Royal Welsh Show a simple ready reckoner will be available on the Welsh Government website. Farmers will be able to calculate an indicative payment for the SFS Universal Payment for their farm.

We have listened to opinions across the agricultural industry and the Scheme is now much simpler. There are fewer Universal Actions and we have made it less complex and more accessible to all types of farms.

It is a flexible Scheme to accommodate different farming systems and practices, ensuring it is truly accessible to tenant farmers. There are also no barriers to entry for new and young entrants who have access to land and can meet the requirements of the Scheme, supporting the next generation of Welsh farmers.

The Deputy First Minister, concluded: “This represents a landmark moment for Welsh agriculture, with farmers playing a central role in our food security, environmental protection, and maintaining the distinct cultural heritage and language of rural Wales.

“Our ambition is to see a thriving and confident agriculture industry in Wales, that is built around innovation and growth, to rise to the challenges we face and make most of the opportunities available.

“We hope the majority of farmers join the Scheme to help us realise this ambition. We firmly believe it will provide much needed stability whilst helping farm businesses to be more resilient, productive and sustainable.”

2- The Welsh Government has today published the final version of the Sustainable Farming Scheme (SFS), which the Farmers’ Union of Wales says marks a generational milestone for Welsh agriculture.

This Scheme will be the primary mechanism through which farm businesses in Wales will be able to apply for farm support from 2026 onwards as the Basic Payment Scheme (BPS) is phased out over the coming years.

Building on the revised SFS framework published in November last year, the Scheme is structured around the principle of Universal, Optional and Collaborative layers, providing both a level of universal consistency for all farm businesses and an opportunity to do more if they wish.

Speaking in response to the publication, FUW President Ian Rickman has commented:

“Since the initial Brexit and Our Land consultation in 2018, the FUW, its officials and staff have invested a remarkable amount of resources into lobbying, negotiating and challenging the Welsh Government in order to try and secure a workable Scheme for the future of our thriving, sustainable family farms and food production across Wales.

During the past year alone, we have attended in excess of 60 meetings with the Welsh Government totalling over 300 hours of negotiations. I can assure FUW members and the wider agricultural community that we have left no stone unturned over the past seven years in our ambition to secure a viable post-Brexit farm support framework.

The Scheme published today represents this prolonged period of negotiation, marking a generational milestone for the future of Welsh agriculture.”

The document sets out the payment rates for 2026 and exactly what farmers will be required to do and the evidence they will be required to provide and/or retain if you choose to enter the Scheme in the future.

“To highlight some of the key successes, we have secured a total budget for the Universal Baseline Payment and BPS taper combined of £238 million, providing workable payment rates and much needed stability for the sector. This includes the provision of universal payments for common land rights holders.

We have retained and strengthened the application of capped and redistributive payments, a longstanding policy position for the FUW and one that maximises the amount of money going to typical Welsh family farms and rural communities.

We have also reduced the number of Universal Actions from 17 to 12 with added flexibility and simplification, including exemptions for tenants and the removal of the unworkable 10% tree cover Scheme Rule.

However, we accept that the Scheme is not perfect. The 10% habitat Scheme Rule will be a concern for many as will the management requirements that will apply on those areas despite these being less prescriptive than previous agri-environment schemes.

We also appreciate there will be concerns raised around the Scheme-level ambition to plant 17,000 hectares of trees by 2030, the potential year-to-year fluidity of the payment rates and the shorter BPS transition, which will now fall to 60% in 2026 and reduce by 20% per year thereafter. We have been consistent in our calls for the BPS transition to follow five equal reductions starting at 80% in 2026 as was initially proposed by the Welsh Government.

FUW members can be assured that the Union made its position absolutely clear on these areas throughout the negotiations. I am confident that the Union has done everything in its power to represent you and your businesses throughout this process.

This Scheme will be different to what we have historically considered as direct farm support or subsidies. I therefore urge all Welsh farmers to consider the Scheme requirements and payment rates in the context of your own businesses.”

Whether farmers decide to enter the SFS at any point in the future, or continue with the tapering BPS and operate without farm support thereafter, the FUW is here to support you and your businesses throughout the transition period and beyond.

Despite this important milestone, we will continue to represent your voice as FUW members as the technical guidelines are finalised and the Scheme is tweaked in response to feedback from participating farmers. Your continued feedback and practical input will therefore play an essential role for future Scheme development.”