Multi-annual SFS budget delivers much needed certainty to the family farms of Wales

The Welsh Government has today announced that the budget for the Sustainable Farming Scheme (SFS) will be maintained at £340 million per year for the next three years, with £238 million per year being allocated to the universal layer of the scheme.

The announcement was discussed further with Farmers’ Union of Wales on Monday morning at the Royal Welsh Show in a meeting with Wales’ First Minister, Rhun ap Iorwerth, and Cabinet Minister for Rural Resilience and Sustainability, Llŷr Gruffydd.

The UK’s departure from the EU led to the loss of the intermediate term stability provided by the EU’s seven year multiannual financial framework, therefore funding for rural affairs and farm support in Wales has since been set annually.

Welsh farmers will receive over £1 billion in funding across this Senedd term, with the announcement fulfilling a pledge made in the Plaid Cymru Government's first 100 days to provide a multi-annual budget for the Sustainable Farming Scheme.

Welcoming the announcement, FUW President, Ian Rickman said: “Recent years have brought significant financial uncertainty for the farming sector in Wales, making it increasingly difficult for businesses to plan with confidence and make informed long-term financial decisions.

“The FUW has consistently called for a five-year funding framework, so today’s commitment to provide certainty until March 2030 is a welcomed relief for the family farms of Wales. It provides much-needed stability and a stronger foundation for the remainder of the decade, giving businesses greater confidence to plan for the future. 

"The Minister's commitment should also be viewed in the context of mounting budgetary pressures and evolving decisions in Westminster, both of which could have significant implications for Wales over the coming years.

“Our Senedd Election Manifesto emphasised that Welsh farmers should not be disadvantaged for transitioning to a new system of support that places greater societal and environmental demands on their businesses. On this basis, we continue to highlight the need to increase the base-level funding of the SFS to mitigate any economic impacts and match the policy ambitions of the Welsh Government.

“To this end, we will continue to work closely with the Welsh Government to ensure that the universal baseline payment rates are appropriate, and that every penny of the SFS budget is received by the active farmers of Wales.

“Providing farming businesses with the certainty they need to make informed decisions is essential. Today's announcement therefore represents a major milestone for agricultural support in Wales and an important step towards delivering the long-term confidence that Welsh farmers have been seeking.”