Sustainable Farming Scheme publication marks generational milestone for Welsh agriculture, says FUW

The Welsh Government has today published the final version of the Sustainable Farming Scheme (SFS), which the Farmers’ Union of Wales says marks a generational milestone for Welsh agriculture.

This Scheme will be the primary mechanism through which farm businesses in Wales will be able to apply for farm support from 2026 onwards as the Basic Payment Scheme (BPS) is phased out over the coming years.

Building on the revised SFS framework published in November last year, the Scheme is structured around the principle of Universal, Optional and Collaborative layers, providing both a level of universal consistency for all farm businesses and an opportunity to do more if they wish.

Speaking in response to the publication, FUW President Ian Rickman has commented: “Since the initial Brexit and Our Land consultation in 2018, the FUW, its officials and staff have invested a remarkable amount of resources into lobbying, negotiating and challenging the Welsh Government in order to try and secure a workable Scheme for the future of our thriving, sustainable family farms and food production across Wales.

"During the past year alone, we have attended in excess of 60 meetings with the Welsh Government totalling over 300 hours of negotiations. I can assure FUW members and the wider agricultural community that we have left no stone unturned over the past seven years in our ambition to secure a viable post-Brexit farm support framework.

"The Scheme published today represents this prolonged period of negotiation, marking a generational milestone for the future of Welsh agriculture.”

The document sets out the payment rates for 2026 and exactly what farmers will be required to do and the evidence they will be required to provide and/or retain if you choose to enter the Scheme in the future.

“To highlight some of the key successes, we have secured a total budget for the Universal Baseline Payment and BPS taper combined of £238 million, providing workable payment rates and much needed stability for the sector. This includes the provision of universal payments for common land rights holders.

"We have retained and strengthened the application of capped and redistributive payments, a longstanding policy position for the FUW and one that maximises the amount of money going to typical Welsh family farms and rural communities.

"We have also reduced the number of Universal Actions from 17 to 12 with added flexibility and simplification, including exemptions for tenants and the removal of the unworkable 10% tree cover Scheme Rule.

"However, we accept that the Scheme is not perfect. The 10% habitat Scheme Rule will be a concern for many as will the management requirements that will apply on those areas despite these being less prescriptive than previous agri-environment schemes.

"We also appreciate there will be concerns raised around the Scheme-level ambition to plant 17,000 hectares of trees by 2030, the potential year-to-year fluidity of the payment rates and the shorter BPS transition, which will now fall to 60% in 2026 and reduce by 20% per year thereafter. We have been consistent in our calls for the BPS transition to follow five equal reductions starting at 80% in 2026 as was initially proposed by the Welsh Government.

"FUW members can be assured that the Union made its position absolutely clear on these areas throughout the negotiations. I am confident that the Union has done everything in its power to represent you and your businesses throughout this process.

"This Scheme will be different to what we have historically considered as direct farm support or subsidies. I therefore urge all Welsh farmers to consider the Scheme requirements and payment rates in the context of your own businesses.”

Whether farmers decide to enter the SFS at any point in the future, or continue with the tapering BPS and operate without farm support thereafter, the FUW is here to support you and your businesses throughout the transition period and beyond.

"Despite this important milestone, we will continue to represent your voice as FUW members as the technical guidelines are finalised and the Scheme is tweaked in response to feedback from participating farmers. Your continued feedback and practical input will therefore play an essential role for future Scheme development.”