Farm leaders weigh up Sustainable Farming Scheme options

Farming leaders in Wales have said that the 40% drop in the Basic Payment Scheme (BPS) from next year will leave many scrambling to work out their business options.

The Welsh government announced the surprise cut on Tuesday 15 July as part of its Sustainable Farming Scheme (SFS) launch.

The SFS will replace the BPS completely by 2029, though farmers can still opt for their BPS payment until 2028 by when it will have been reduced by 80%.

See also: Welsh government targets BPS with final SFS description

Farmers’ Union of Wales president Ian Rickman said the 40% reduction in BPS is not viable for his farm in Carmarthenshire.

Number crunching

“I doubt our business can survive with a 40% reduction in BPS. We’ll have to crunch the numbers and decide what we’re going to do,” he told Farmers Weekly on the eve of the Royal Welsh Show.

Mr Rickman, who farms with his business partner, Sean Jeffreys, said: “As a “63-year-old farmer, I have concerns about what the new scheme is asking us to do. Sean doesn’t seem so worried about it though.”

He added that there is a cost to carrying out all the additional requirements under SFS, including the work for the required 10% habitat provision, but it must be weighed up carefully against the BPS reduction.

Mild optimism

NFU Cymru president Aled Jones, who two years ago said the scheme wasn’t workable for his farm while it included 10% mandatory tree cover, now feels more optimistic and says there are pockets of land where tree planting is possible.

“A quick scan around the farm looking to potential areas it was clear we wouldn’t get to 10%. Now that’s gone, these little pockets are still available, and so I’ve got no resistance,” he said.

NFU Cymru president Aled Jones © MAG/Anne Dunn

While Mr Jones didn’t commit to whether he would now apply for the scheme, he said he will consider it after the data confirmation on habitat has been completed for his farm.

“I’m not sure how much habitats I do have,” he said. “One thing I can say is that there are 10 miles of hedgerows on the farm, and they’re in particularly good condition. Hopefully I will be able to participate in the scheme,” he said.

No further changes

The Welsh government said no further changes would be made to the scheme and urged farmers to make use of the ready reckoner it is making available, to get an indicative SFS universal payment value, as well as a BPS tapered payment value for 2026.

“I encourage those on the show ground to come and speak to my officials for help and support and find out exactly what the scheme will mean for them,” said deputy first minister Huw Irranca-Davies.