The Welsh Government have published the Sustainable Farming Scheme, which is the new method of providing funding to farmers in Wales following a transition period of payments after the United Kingdom left the European Union. The new scheme changes the necessary criteria that farmers must meet to receive grants.
According to the Welsh Government, the scheme has been designed to ensure the future of food production in Wales, while also taking steps to protect the environment. The final scheme follows protests by farmers in February 2024 after the publication of the original proposals for the scheme by the Welsh Government, which included the need for farmers to plant trees on 10% of their land. That proposal proved very controversial among farmers, and the policy has now been removed from the universal payment, with the need to create habitats to help wildlife instead.
The scheme keeps a budget of £238 million for 2026 and includes flexible support in order to help plant hedges and trees. Generally, the prior emphasis on funding interventions beneficial to nature have been changed from being requirements to being optional measures, yet some requirements such as the need for farmers to create a plan for hedgerow and tree planting on their farms remain.
Direct funding for planting trees and hedges are now limited to the Optional Layer of the Scheme, with payments that the Government have described as ‘generous’ for farmers who choose this path. There will be a higher rate paid for planting trees in the first 3 years of the scheme, as a means of encouraging farmers to adopt the policy. The Government have emphasised that there is no requirement or expectation for farmers to plant trees on their most productive land, and say that advice and guidance will be in place ‘to ensure the right tree in the right place’.
In a statement, Deputy First Minister with responsibility for Climate Change and Rural Affairs, Huw Irranca-Davies said:
“This scheme is the product of extensive collaboration. We’ve listened carefully to farmers across Wales and revised our approach to ensure it works for the agricultural industry and meets our shared responsibilities to the natural world around us.
I would like to thank those who responded to consultations and attended meetings the length and breadth of Wales, and I’m grateful to all members of the Ministerial Roundtable and supporting Working Groups for their input.
We’ve listened, and we’ll continue to listen. It’s clear that the people of Wales want us to back Welsh farming, but they also want to see nature restored, soils protected, water quality in our rivers improved, access to the countryside maintained and nature supported to recover and thrive.
With this in mind, the scheme represents a new relationship between the people of Wales and our farmers. This is not just a scheme for farmers, this is a scheme for the whole of Wales – A whole farm, whole nation approach.
We recognise this involves change. This scheme is fundamentally different from the Basic Payment Scheme, but absolutely necessary for the long term success of farming, food production and the environment.”
The Sutainable Farming Scheme will start on 1 January 2026 with the application for the universal layer of the programme available to fill in online from March until 15 May every year. Farmers who join and follow the requirements of the scheme will receive an annual Universal Payment. The Welsh Government say that the scheme will be less complicated, with less administrative demands on farmers. It is the Governments intention to launch an online calculator that farmers can use to calculate an indicative payment for their farm by the time of the Royal Welsh Show in a few weeks.
The Deputy First Minister said:
“This represents a landmark moment for Welsh agriculture, with farmers playing a central role in our food security, environmental protection, and maintaining the distinct cultural heritage and language of rural Wales.
Our ambition is to see a thriving and confident agriculture industry in Wales, that is built around innovation and growth, to rise to the challenges we face and make most of the opportunities available.
We hope the majority of farmers join the scheme to help us realise this ambition. We firmly believe it will provide much needed stability whilst helping farm businesses to be more resilient, productive and sustainable.”
To learn more about the Sustainable farming Scheme and to see how the new scheme will affect you, follow this link to the Welsh Government’s website.
