Welsh Government announce changes to the Sustainable Farming Scheme

November 2024 | Rural policy, Featured

a lush green hillside covered in lots of trees
The Welsh Government have published changes to the Sustainable Farming Scheme which sparked protests by farmers earlier in the year. The changes include an abandonment of the requirement for farmers to plant trees on 10% of their land, a policy which drew strong criticism from the sector.

In the Winter Fair in Llanelwedd yesterday (26 November 2024), the Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs Huw Irranca-Davies said that the Welsh Government had been discussing the scheme with farming unions, environmental groups and other stakeholders and that theses discussions had informed the changes to the scheme. In a statement he said:

“It was clear changes were needed – we said we would listen – and we’ve done just that.”

Despite this, the changes announced do not represent the final scheme. The Deputy First Minister noted that the most recent proposals are a ‘Scheme Outline’ and that work needs to be done on details of the scheme and ensure that an economic analysis and impact assessment of the proposed changes are undertaken before formally finalising the final scheme.

The need for a scheme of this kind comes as a result of the departure of the United Kingdom from the European Union and therefore the Common Agricultural Policy, which provided farmers with payments.

As well as dropping the requirement to plant trees on 10% of land, the changes include:

  • The retention of the Universal layer of the scheme, but a reduction in the number of Universal Actions that are applicable to all and an increase in the Optional and Collaborative Actions for the farmers that wish to follow them.
  • Instead of the 10% target for trees on every individual farm, a target for the whole scheme will be set following further discussions with the sector and other stakeholders. Farmers who make an application under the scheme can decide how many trees they will plant on their land and can receive funding to do so through the Optional layer.
  • Actions relating to animal health, welfare and biosecurity have been unified in order to simplify the process and ensure better outcomes.
  • The requirement that every farm install wash stations has been dropped and is now an Optional Action.
  • Additional payments based on social value will be made under the universal part of the scheme. The aim of these payments will be to encourage sustainability.

Despite the changes, the Government have decided to keep the requirement to keep 10% of their land as habitat in order to ensure biodiversity and protecting nature. As part of the discussions regarding that part of the scheme, the option of allowing farmers to create ‘temporary habitats’ are being considered, a step which the Government claims will be suitable for every farming system and every type of land ownership.

Huw Irranca-Davies said:

“Farmers are at the heart of communities right across Wales, and they play a crucial role in our economy and food production. As stewards of our land, they also have a key role to play in protecting and restoring nature and tackling the climate emergency.   

I am pleased to be able to publish a revised Scheme Outline today which sets out the significant progress we have made through collaboration with the Roundtable.  

Whilst the progress we have made collectively is significant, this is not the final Scheme. The Roundtable has agreed that the Scheme Outline published today will be used to undertake an updated economic analysis and impact assessment. 

I am extremely grateful for the immense effort that has been made by all members of the Roundtable, an Officials Working Group and the Carbon Sequestration Evidence Review Panel.

We are developing a scheme which is designed to support all farmers in Wales, based on the completion of a set of Universal Actions. These Actions will be familiar to farmers in Wales, whether beef, dairy, arable, upland, lowland, extensive or intensive. They are actions many of them take on a day-to-day basis.  

The final Scheme decision will be made next summer, based on further discussions at the Ministerial Roundtable and evidence including the economic analysis and impact assessment. This will be earliest opportunity we will have to provide details of the payment rates. 

I remain committed to listening to and working with our stakeholders to ensure the final Scheme we deliver next year is a Scheme that will help support the economic resilience of farming businesses, the sustainable production of food, our climate and nature objectives and our rural communities for current and future generations.

I believe the changes set out today to the Scheme Outline will make the Scheme available to all farmers who wish to participate, and strengthen the Scheme’s contribution to our climate and nature commitments. 

We’ve come a long way – and there is still more work to do.”

Overall, the response to the changes have been positive, with the farming unions welcoming the changes. NFU President Aled Jones said:

“Today marks an important step forward in the development of the SFS, whilst there remains a huge amount of work to be done on many aspects of the scheme, including the detail under each Universal Action and payment rates, I am confident that if we continue to work in partnership the SFS can help to deliver on our ambitions for food, nature, climate and communities.”

Ian Rickman, President of the Farmers Union of Wales said:

The work of the three groups over recent months has been intense as we’ve worked through and agreed, in principle, a revised Scheme design. We’ve welcomed the collaboration and opportunity to engage at this level and believe we are now in a better place as a result.

Today’s announcement however only marks the end of the beginning, and there remains a high level of detail to work through and confirm, with the updated economic analysis and impact assessments of crucial importance.

With a more accessible and flexible Scheme design following significant changes, we must now ensure that the associated budget and payment methodology deliver real economic stability for our family farms in Wales as we face a backdrop of many other challenges.”

Although they welcomed the scheme’s continued commitments to biodiversity and nature some environmental charities have expressed concern about the abandonment of planting trees on 10% of land. RSPB Cymru released a statement on X saying:

“We welcome the Welsh Government’s commitment to pay farmers to manage at least 10% of their land for wildlife and to maintain their Sites of Special Scientific Interest. This is vital for both habitat and species recovery in Wales. However, we are concerned around the decision to drop the 10% woodland cover target, when the right tree in the right place can be beneficial to both farming and nature.

Funding for the scheme and how it will be split between different layers of the scheme, remains unclear. As a result, we’re concerned that there is still no distinct plan that shows how the scheme overall will help Wales meet its 2030 biodiversity commitments. Welsh Government should urgently address this lack of clarity to show the scheme will be a credible and effective use of public money.

We will continue working with Welsh Government and the rural sector over the coming months to ensure the scheme is as effective as possible for farmers, for people and for nature.”

WWF Cymru’s response was worded firmly. In a statement published on X, the charity said:

“The Welsh Government’s proposals for the Sustainable Farming Scheme represent a significant regression for both nature and climate, whilst also leaving farmers at greatest risk of climate induced extreme weather impacts – such as the widespread floods seen this weekend – such as the widespread floods seen this weekend – know to be costing the sector millions of pounds each year and impacting local communities.

Thousands of people across Wales, including nature friendly farmers, have raised their voices through our petitions and polling demanding that their hard-earned taxes are used for a Sustainable Farming Scheme that restores nature, tackles climate change, and ensures a sustainable future for communities farmer and food production in Wales.”

The final scheme will be published the summer of 2025 following further discussions and economic assessments, alongside an announcement regarding payment rates. The scheme will come into force in 2026. For more information regarding the changes, follow this link to the Welsh Government’s website.

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