Welsh Government unveils final Sustainable Farming Scheme amid calls for transparency and food security
The Welsh Government has published the final version of its long-awaited Sustainable Farming Scheme (SFS), marking what the Farmers’ Union of Wales (FUW) describes as a “generational milestone” for Welsh agriculture. But while the scheme aims to reshape farm support from 2026 onwards, it has also sparked criticism from opposition parties and farming leaders over funding clarity, food production targets, and the absence of an updated economic impact assessment.
The SFS will replace the Basic Payment Scheme (BPS), which has underpinned Welsh farm incomes for decades. Structured around Universal, Optional and Collaborative layers, the new scheme is designed to reward sustainable land management, biodiversity, and climate resilience, while offering flexibility for farmers to tailor their participation.
FUW: “A milestone, but not without concerns”
FUW President Ian Rickman welcomed the publication, noting that the union had invested over 300 hours of negotiations with Welsh Government officials in the past year alone. He said the scheme reflects years of lobbying and consultation since the initial Brexit and Our Land proposals in 2018.
Among the union’s key achievements are:
- A £238 million budget for the Universal Baseline Payment and BPS taper in 2026
- Retention of capped and redistributive payments to support typical Welsh family farms
- Reduction of Universal Actions from 17 to 12, with added flexibility
- Removal of the 10% tree cover rule, which had sparked widespread protests
However, Rickman acknowledged that the scheme is “not perfect.” He flagged concerns over the 10% habitat management requirement, the ambition to plant 17,000 hectares of trees by 2030, and the shorter BPS transition, which now falls to 60% in 2026, reducing by 20% annually thereafter.
“We urge all Welsh farmers to consider the Scheme requirements and payment rates in the context of your own businesses,” Rickman said. “Whether farmers decide to enter the SFS or continue with the tapering BPS, the FUW is here to support you throughout the transition.”
Welsh Conservatives: “Still in the dark”
The Welsh Conservatives have criticised the scheme’s rollout, arguing that farmers remain “in the dark” due to the lack of an updated economic impact assessment. Shadow Cabinet Secretary for Rural Affairs Samuel Kurtz MS said the absence of such analysis undermines the scheme’s credibility and leaves farmers unable to assess its real-world consequences.
“There are aspects of the scheme that can be cautiously welcomed,” Kurtz said, referencing the removal of the 10% tree planting requirement. “But a scheme-wide tree planting target remains, alongside a 10% habitat target, which could reduce food production in Wales.”
Kurtz also raised concerns about future funding, noting that the Universal tier budget is only matched to BPS for 2026, with no guarantees beyond that. He called for a Senedd vote to give the scheme democratic legitimacy and urged the Welsh Government to publish its impact assessment.
Darren Millar MS: “No mention of food security”
During First Minister’s Questions, Welsh Conservative Leader Darren Millar MS accused the Welsh Government of neglecting food security in its updated SFS document.
“The term ‘food security’ doesn’t appear once,” Millar said. “Yet the word ‘environment’ is mentioned 79 times, which tells you everything you need to know about Labour’s priorities.”
Millar warned that under Labour’s plans, Welsh farmers could be forced to sacrifice an area “half the size of the Vale of Glamorgan” to tree planting, while the UK Climate Change Committee recommends a 19% cut in livestock numbers — a proposal the Conservatives reject.
“For every £1 invested in farming, £9 is returned to the Welsh economy,” Millar added. “Yet Labour is freezing the £238m farming budget with no uplift, which is a real terms cut. Labour is sacrificing Welsh livelihoods and food security.”
Andrew RT Davies: “Where is the impact assessment?”
Former Welsh Conservative Leader and South Wales Central MS Andrew RT Davies, himself a farmer, echoed calls for transparency. He pointed to the previous impact assessment, which projected the loss of 5,000 farmers, 100,000 cattle, and nearly a million sheep under earlier SFS proposals.
“We need assurances there will not be devastating consequences from this revised scheme,” Davies said. “Yet Senedd ministers won’t publish an impact assessment. This obviously leads us to ask why.”
Welsh Government: “A whole farm, whole nation approach”
In its official statement, the Welsh Government described the SFS as a “whole farm, whole nation” approach to securing the future of food production while protecting the environment. Deputy First Minister Huw Irranca-Davies said the scheme reflects extensive collaboration and aims to support farmers in adapting to climate change, restoring nature, and maintaining rural heritage.
The scheme includes:
- A Universal layer with 12 required actions, including soil health, hedgerow management, and animal welfare
- A tree and hedgerow planting opportunity plan, replacing the 10% tree cover rule
- A 10% habitat management requirement, with flexible options
- A social value payment recognising farming’s wider benefits
- A £1,000 stability payment for farms up to 100ha
Applications will open via Rural Payments Wales from March to 15 May 2026, with the scheme officially launching on 1 January 2026.
What’s next?
While the FUW and other stakeholders have welcomed the scheme’s publication, calls for greater clarity, economic modelling, and long-term funding commitments continue to dominate the political debate. Farming unions have urged members to review the scheme carefully and provide feedback as technical guidelines are finalised.
The Welsh Government has committed to ongoing consultation and refinement, but pressure is mounting for it to publish the impact assessment and address concerns around food production, budget stability, and administrative burden.
Swansea Bay News will continue to follow developments as the Sustainable Farming Scheme moves toward implementation.
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