This text outlines the Welsh Government‘s new Sustainable Farming Scheme (SFS), which will replace the Basic Payment Scheme (BPS) starting January 1, 2026.
Here’s a breakdown of the key facts:
core Philosophy:
Whole of wales, Whole Farm Approach: The scheme aims to support farming, food production, and the environment across the entire nation.
Fundamental Change: It’s a critically important departure from the BPS, designed for the long-term success of Welsh agriculture.how the Scheme Works:
Launch Date: January 1, 2026.
Application Process: Application forms for the Global layer will be available on Rural Payments Wales (RPW) Online from March to May 15 annually.
Universal Layer:
Provides an annual Universal Payment to farmers who join and adhere to Scheme requirements,including a set of Universal actions.
Many universal Actions are designed to be familiar to farmers across different farming types in Wales.
The scheme has been simplified with fewer administrative requirements and a reduced number of Universal Actions, building on existing RPW systems.
Layers of Support:
Universal Layer: Provides stability and a baseline payment.
Optional Layer: Offers additional support for farmers who want to do more, including generous payments for tree and hedgerow planting (with higher rates for the first 3 years) and agroforestry.
Collaborative Layer: Supports collective action and further income generation.
Key Requirements:
Woodland and Hedgerow Creation Plan: All entering farmers must complete a plan in their first year and demonstrate progress by the end of the 2028 scheme year.
Habitat Management: Farmers must actively manage at least 10% of their land as habitat to benefit biodiversity and nature recovery.Temporary habitat options are available.
Flexibility and Accessibility:
The scheme is designed to be flexible to accommodate different farming systems and practices. It is accessible to tenant farmers.
There are no barriers to entry for new and young farmers who have access to land and can meet the requirements, supporting the next generation.
Financial Commitment:
Universal Payments: The Welsh Government is committing the equivalent of this year’s BPS budget (£238 million for 2026) to Universal Payments, ensuring financial stability and incentivizing participation.
Optional and Collaborative Actions: A significant budget will be allocated to these layers, building on existing preparatory schemes, to provide further income and support for improvements.
Tools and Information:
Ready Reckoner: A simple tool will be available on the Welsh Government website by the Royal Welsh Show to help farmers calculate indicative Universal Payments.
Overall Goal:
The Deputy First Minister emphasizes that this scheme is a “landmark moment” for Welsh agriculture, recognizing the central role of farmers in:
Food security
Environmental protection
* Maintaining rural Wales’ cultural heritage and language.
In essence,the Sustainable Farming Scheme is a comprehensive,long-term strategy to support Welsh farmers in adapting to new environmental and economic realities,while ensuring the continued success of the agricultural sector and the Welsh countryside.
