Welsh farmers invited to apply for SFS capital grants

Welsh farmers can now apply for capital grant funding under the Sustainable Farming Scheme (SFS) “optional” layer to support productivity and environmental improvements.

The Welsh government has opened applications for grants to help fund equipment that improves soil, manure and livestock management, while also supporting better crop monitoring.

See also: Strong farmer demand forecast for £225m Capital Grants pot

The funding is aimed at helping farmers build on work already completed under the SFS “universal” layer, including soil testing, integrated pest management and animal health and welfare actions.

The funding is available to all businesses that meet the scheme’s eligibility criteria, even if they are not claiming the SFS universal payment.

Available funding

Grants ranging from £500 to £15,000 are available, with the Welsh government contributing 40% of eligible costs, excluding VAT.

Farmers may submit applications worth more than £15,000, but public funding will be capped at £15,000 or 40% of eligible costs, whichever is lower.

Eligible items include:

• Livestock handling systems and cattle crushes
• Electronic weighing and identification equipment
• Precision fertiliser and spraying technology, direct drills, and slurry management equipment
• Biosecurity measures such as feed bins and badger-proof troughs
• Soil aerators, grain monitoring equipment, water storage and filtration systems
• Digital technologies including GPS devices, weather stations and environmental sensors

The Welsh government said the equipment is intended to improve productivity by making more efficient use of inputs, reducing disease risks and improving livestock handling.

It is also expected to support higher animal welfare standards while helping improve water and air quality and reduce carbon emissions.

Organic conversion

Separately, applications for organic conversion support will open on Wednesday (29 July) and close on 9 September. 

The scheme offers five-year agreements, with land required to remain certified by an approved Organic Control Body throughout the agreement from 1 January 2027.

Conversion payments will be available during the first two years for eligible land entering organic production before that date, after which farmers can apply for ongoing organic farming support.

Indicative payment rates include £375/ha for horticulture, £76/ha for enclosed rotational cropping and temporary grassland, and £155/ha for enclosed grassland supporting dairy enterprises.

Farmers do not have to convert their entire holding, although whole land parcels must be entered into the scheme.

Existing organic producers can also apply on eligible land that is not already certified or in conversion.