£33m for SFS preparatory schemes announced

The Welsh government has made £33m available for nine Sustainable Farming Scheme (SFS) preparatory schemes.

These, deputy first minister Huw Irranca-Davies said, will provide certainty and stability and back farm businesses during the transition from the current Basic Payment Scheme (BPS) to the new SFS, which launched last Tuesday (15 July).

The funding is available for the 2026-27 financial year.

See also: How the Ffermio Bro agri-environment scheme is bedding in

Current preparatory schemes include:

• Habitat Wales scheme
• Integrated natural resources scheme
• Ffermio Bro scheme.

Under these schemes, farmers can, for example, apply for small grants for hedgerow planting and small efficiency grants which include livestock handling facilities or yard coverings.

Mr Irranca-Davies said: “This funding will help farmers invest in nutrient management, environmental improvements and efficiency equipment while delivering on environmental benefits like water quality and biodiversity.” 

The funding – which aims to help farmers get ready for the new scheme – was welcomed by the Game and Wildlife Conservation Trust (GWCT), which said it is money well spent, but farmers must be profitable if they are to continue delivering for nature and climate.

GWCT’s policy director for Wales, Sue Evans, said: “We believe that you can deliver far more for nature and the environment on a landscape scale and through a collaborative programme where farmers are working together.”

For a lot of farmers, the BPS was their main income and for them to do more for nature meant being profitable first, she added.

“It is doing that in a way that farmers actually have a living income first, because you can’t be green if you’re in the red,” she said.

The Nature Friendly Farming Network (NFFN) also welcomed the cash to help the industry prepare for the new scheme, which farmers can apply to join from March 2026.

NFFN Cymru manager Rhys Evans said: “Any support for farmers to transition into the SFS and facilitate more nature-friendly farming systems is very much welcome from our point of view.”

However, the Farmers’ Union of Wales said, while such grants are welcomed to fund efficiency and environmental improvements, farmers still need direct financial support.

“It’s still vital that funding for the SFS universal baseline payment is the primary tool for delivering money into farmers pockets for the work they do,” said FUW policy officer Teleri Fielden.