Sustainable Farming Scheme launches as Welsh farmers weigh up options

Wales’ long-awaited post-Brexit farm support system officially launched on 1 January 2026.

The Sustainable Farming Scheme (SFS) marks a major shift in how Welsh agriculture is funded.

The scheme, which will eventually replace the Basic Payment Scheme (BPS) as the main source of farm support in Wales, has been billed by the Welsh government as a farmer-designed programme aimed at supporting food production while delivering environmental and climate benefits.

It comes almost 10 years after the UK voted to leave the EU, ending decades of area-based subsidies worth more than £300m/year to Welsh farming.

See also: Outlook 2026: Farm support disparities and uncertainty grows

Farmers entering the SFS must commit to 12 “Universal Actions” in return for entry-level payments.

These include soil testing, benchmarking, maintaining hedgerows, reducing pesticide use, supporting wildlife habitats and undertaking ongoing learning.

Additional funding will be available through Optional and Collaborative Actions for more ambitious environmental work and farms working together.

Eligibility is limited to active farmers with at least 3ha of eligible land or more than 550 standard labour hours, and management control of land for at least 10 months of the year.

The Universal Layer runs annually from 1 January, with applications made through the Single Application Form (SAF), opening on 2 March and closing on 15 May.

Alternatively, farmers can remain in the legacy BPS scheme as it is phased out, but would face a 40% reduction in payments this year.

Social Value Payment a ‘real win’

NFU Cymru deputy president and south Wales dairy farmer Abi Reader said the new SFS was “not perfect” but compared favourably with England, adding: “What we’ve got is far better.”

She described the Social Value Payment as “a real win for the industry”.

However, Ms Reader warned of complexity and low awareness, noting the 217-page Universal Layer rulebook (PDF) was “not helpful” for practical farmers.

She urged farmers to study the guidance, seek advice and weigh up costs using the ready reckoner.

Ms Reader said she was personally “more in than out” on joining the scheme.

She added that while finding 10% habitat remains a challenge, she was “really comfortable” the farm would join if suitable habitat can be identified.

However, Ms Reader said NFU Cymru’s main concerns centre on flexibility, particularly around continuous professional development (CPD) and hedges.

She said there was insufficient recognition of the CPD farmers engage in and warned some hedges may not count if planted outside of the Glastir scheme, risking “completely unnecessary warfare on hedges”.

‘Landmark moment’ – minister

In a written statement, deputy first minister Huw Irranca-Davies described the SFS as “a truly landmark moment for Welsh agriculture”.

He added that it was designed to support farmers “to produce world class, high-quality food whilst caring for the environment, tackling and adapting to climate change and building resilience”.

He urged farmers to familiarise themselves with the published guidance before deciding to enter.

He noted that from 1 January until the SAF deadline “all farmers will be treated as meeting the Universal Layer requirements” to ease transition.

FUW seeks more funding

The Farmers’ Union of Wales (FUW), meanwhile, has renewed its call for increased funding.

It argues that the £238m annual budget pledged by the Welsh government for the SFS is insufficient to meet its ambitions.

FUW president Ian Rickman said: “Welsh farmers need certainty and adequate support to ensure the scheme succeeds and delivers for the environment, rural communities, and farm businesses across Wales.”