Welsh government launches farm loan scheme
© Adobe Stock Welsh farming businesses will be able to access affordable finance to modernise their operations and cut carbon emissions under a new loan scheme launched by the Welsh government and delivered by the Development Bank of Wales.
The Sustainable Agriculture Loan Scheme (Sals), announced on 12 March, will offer loans at a fixed 3% interest rate, repayable over up to 15 years, for projects supporting energy efficiency, productivity improvements, and slurry and nutrient storage.
Farms can borrow between £25,000 and £1m per project, with up to £5m available during the 2026-27 financial year. A six-month repayment holiday at the start of the loan is included, with seasonal payment options under consideration.
See also: Key elements of new Welsh farm support scheme incomplete
Wales’ deputy first minister Huw Irranca-Davies said: “I’m pleased that we’re able to work with the Development Bank of Wales on this new scheme which will be another way of supporting Welsh farming businesses to modernise and remain financially sustainable.”
NFU Cymru president Abi Reader welcomed the announcement, saying: “NFU Cymru very much welcomes today’s Sals announcement.
“Access to finance to undertake productivity and efficiency improvements is often cited as a barrier to undertaking investment on farm.
“This is particularly true for young farmers, new entrants and those who do not own the land they farm. We are therefore pleased that the new loan scheme launched by Welsh government today and delivered by the Development Bank for Rural Wales seeks to do just that.”
Complementary to schemes
She added: “The union is also encouraged that the deputy first minister has already confirmed that the Sals scheme will be complementary to existing Welsh government grant schemes and the Sustainable Farming Scheme.
“NFU Cymru will be studying the information being published by the Development Bank for Rural Wales to see how this will work in practice.”
Further information and expressions of interest are available via the Development Bank of Wales website.
