With the Sustainable Farming Scheme (SFS) launching on 1st January 2026, it is crucial for farmers to plan their farm’s transition from the Basic Payment Scheme (BPS) to SFS. Understanding the implications, deadlines, and financial impacts of each scheme is essential for making the best decision for your farming business.
BPS 2025 payments
Advance payments worth up to 70% of the anticipated final Basic Payment Scheme (BPS) 2025 claim value have been paid to customers since 14th October where it was possible to confirm eligibility and receive all necessary supporting documents. Advance payments may not have been made due to reasons such as ongoing land disputes, breaches identified at inspection, or outstanding probate matters. Subject to completion of full validation, BPS 2025 balance payments (or full payments for those who did not receive an advance) will commence from 12th December 2025.
BPS transfer & lease of entitlements for 2026
From 2026, the transfer of BPS entitlements will be restricted to those who transfer or lease entitlements with land only. In cases of inheritance and succession, this will mean that BPS entitlements can only be transferred with land. The 2026 transfer and lease window, along with full entitlement transfer rules, will be available in early 2026.
BPS transition period
The BPS transition period begins on 1st January 2026 with the introduction of the Sustainable Farming Scheme (SFS). In 2026, farmers may choose to claim either BPS or SFS on the Single Application Form (SAF), available in March 2026. Once a business submits an SFS claim, it cannot return to BPS. From 2026 onwards, BPS becomes a legacy scheme. While eligibility criteria and scheme rules will remain unchanged during the transition, payments will taper over the next three years based on BPS 2025 entitlement values:
- 60% in 2026
- 40% in 2027
- 20% in 2028
There will be no BPS available from 2029. The 2025 scheme year is also the final year for the National Reserve and the 2-year entitlement usage rule. Young Farmer Payments will not be available to new entrants from 2026. Full guidance is available here.
Choosing between BPS and SFS in 2026
A key consideration for many businesses is whether remaining under BPS for as long as possible is financially preferable, or whether transitioning to SFS in 2026 offers greater stability and long-term return. Timing is critical, as once you leave BPS you cannot re-join.
Key Deadlines:
- The SFS scheme year runs from 1st January-31st December.
- To claim SFS in 2026, you must meet the Universal Action requirements (including habitat and woodland maintenance) from the first day of the scheme year.
- Farmers have until the 15th May SAF deadline to decide whether to claim BPS or SFS.
- SAF 2026 will require a declaration confirming compliance from the start of the scheme year if submitting an SFS claim.
SFS Universal Actions
The Introduction to the Sustainable Farming Scheme outlines the 12 Universal Actions required under the scheme. Further detail is available in the Sustainable Farming Scheme 2026: Scheme Description.
Preparing for the Transition
There are several steps farmers can take now to prepare for the transition, including getting a head start on some of the individual UAs:
- Estimate your indicative SFS Universal Payment using the Welsh Government’s Ready Reckoner tool. This simple calculator uses your 2025 SAF summary and SFS Data Confirmation form to give an estimate of your 2026 payments. If you didn’t complete the 2025 Data Confirmation exercise, then you will need to you use an estimate for the habitat figure or leave this box blank.
- UA1 Soil Health – soil testing undertaken up to four years before entering the scheme will count towards this UA.
- UA4 Continuous Professional Development – SFS e-learning modules available from Farming Connect and completed in 2025 will count towards this UA for 2026.
- UA10 Tree and Hedgerow Planting Opportunity Plan – consider where additional tree and hedgerow planting would benefit your farm and explore planting now through existing woodland and hedgerow creation schemes.
- Familiarise yourself with templates for UAs such as UA2 Integrated Pest Management and UA12 Animal Health and Welfare to make compliance easier.
Frequently asked questions
A Frequently Asked Questions document has been developed to accompany the Sustainable Farming Scheme 2026: scheme description. Full Scheme Guidance and Technical Notes will be available before the scheme starts.
Your SFS map
To help identify the Universal Actions applicable to your farm, SFS maps will be available on RPW Online. These maps will detail broad habitat classification, woodland and tree canopy cover, designated sites, and historic features.
If you have completed the data confirmation exercise, the SFS maps will reflect any changes you may have already identified. This mapped information will also be presented within the Single Application Form (SAF 2026), available in March, where you will have the final opportunity to review and confirm the information as part of your SFS application.
To prepare the SFS maps, ‘Manage My Land’ will not be available between 8th November 2025 and 12th January 2026. Any changes to land, purchases, or sales can be completed from 13th January 2026.
Single Application Form (SAF) 2026 assistance
If you need support with your 2026 SAF, our team of SFS specialists can ensure accurate submission and full entitlement to payments. Our service includes:
- Full submission of SAF mapping & boundary changes
- Entitlement / land transfers
- Customer registration
- Follow-up of any payment queries (if applicable)
Support & advice
Our Stewardship & Grants team is ready to support you through the transition. We can help you compare BPS and SFS, and make the relevant application on your behalf, maximise funding through Universal, Optional, and Collaborative Actions, ensure compliance, and plan for your farm’s long-term sustainability.
For expert advice on the Sustainable Farming Scheme or to book an initial consultation, contact CXCS today on 01981 590514.