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Sustainable Farming Scheme in Wales: What Happens Next?

Written by: Ernie Richards, Advisory Service Officer for Wales at CXCS

With the Sustainable Farming Scheme (SFS) now progressing through its application cycle in Wales, many farm businesses have successfully submitted their applications via the Single Application Form (SAF). However, Ernie Richards, Advisory Service Officer for Wales at CXCS, is reminding farmers that submitting an application is only the beginning of the process, with the real work now shifting towards implementation, compliance, and forward planning across the scheme’s different layers.

Ernie joined the CXCS team last year and brings a wealth of knowledge and practical experience in farming, particularly sheep farming. He is passionate about helping Welsh farmers maximise their farm income while preparing for future scheme requirements.

This update has been prepared by Ernie Richards at CXCS to help farmers understand what happens after applying to the Sustainable Farming Scheme (SFS) and how to prepare for the next stages.

If you’ve applied to the SFS: what happens now?

For those who have entered the scheme, attention now turns to delivering the Universal Layer requirements, which form the foundation of SFS participation.

These Universal Actions cover key areas of farm management, including:

  • Soil health and nutrient management
  • Integrated pest management
  • Habitat, hedgerow and tree management
  • Farm business benchmarking and performance review
  • Biodiversity and environmental feature protection

While many of these practices may already be part of routine farm management, the scheme requires them to be evidenced, recorded, and consistently applied to maintain compliance and secure payment.

This is where ongoing support becomes particularly valuable.

Farm businesses are now focusing on:

  • Ensuring actions are correctly interpreted and implemented
  • Maintaining accurate records for inspection and audit purposes
  • Aligning environmental actions with productive farm systems
  • Planning ahead for Optional and Collaborative Layer opportunities as they develop
Moving beyond compliance: planning for Optional and Collaborative Layers

The SFS is designed as a multi-layer structure. While the Universal Layer provides the baseline payment, future income opportunities will increasingly come through the Optional and Collaborative Layers.

These are expected to reward:

  • Targeted environmental improvements
  • Water and soil quality enhancements
  • Habitat creation and management at scale
  • Collaborative landscape or catchment-based projects

For many farms, the key challenge will not just be compliance but ensuring they are well positioned to take advantage of these higher-value opportunities as they open.

Early planning and structured advice can help ensure that current decisions support future eligibility and income potential.

Subsidised advice through Farming Connect

Welsh farmers may be able to access subsidised one-to-one advisory support through CXCS, funded by Farming Connect, to help prepare for and deliver SFS Universal Actions, with eligible businesses able to access funding of up to 80% towards advice and services.

As an approved Farming Connect provider, CXCS delivers this support directly to your farm, helping simplify access to expert guidance and ensuring advice is tailored to SFS preparation, implementation and long-term compliance.

Farmers should also be aware that as of 1st April 2026 all businesses and individuals will need to re-register with Farming Connect through their RPW online account to continue to access the programme’s support.

For further information on Farming Connect support and eligibility visit: Farming Connect Advisory Service and Sustainable Farming Scheme Support Through Farming Connect

How CXCS can help

At CXCS, we are supporting farm businesses that have entered the Sustainable Farming Scheme to:

  • Interpret and implement Universal Action requirements correctly
  • Establish robust systems for record keeping and compliance
  • Review farm businesses for efficiency and scheme alignment
  • Identify opportunities within Optional and Collaborative Layers
  • Integrate scheme requirements into wider farm business planning

Our focus is on ensuring that SFS participation works with your business, not against it, and that opportunities are maximised at every stage of the scheme.

For those remaining in BPS for 2026

We understand that not all businesses will have transitioned into SFS immediately. Some will continue within the Basic Payment Scheme (BPS) for the 2026 scheme year while assessing their options.

For these businesses, this period is still an important planning phase.

Even while remaining in BPS, it is worth considering:

  • How future SFS requirements may affect your holding
  • Whether your current system aligns with Universal Actions
  • What changes may be needed for a smoother transition in future application windows

Early preparation can significantly reduce disruption when transitioning into SFS at a later stage.

CXCS continues to support businesses at all stages of this transition, helping ensure they remain informed, compliant, and ready for future change.

Final thoughts

The Sustainable Farming Scheme is not a one-off application exercise – it is an ongoing shift in how farm support and environmental management are structured in Wales.

For those already in the scheme, the focus is now on delivery and optimisation. For those still in BPS, the focus is preparation and informed decision-making.

Either way, getting the right advice early can make a significant difference to both compliance and long-term farm business performance.

Further help and advice

If you would like support with SFS implementation or planning your next steps, the CXCS team is here to help.

For further help and advice, please contact our Stewardship & Grants team on 01981 590514.

 

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