The Welsh Government has published a new Frequently Asked Questions (FAQs) document alongside the Sustainable Farming Scheme (SFS) 2026: scheme description. This guide provides an overview of scheme requirements and answers some of the technical questions farmers may already be asking.
While the scheme description outlines what’s expected of farm businesses, many farmers want clarity on the detail – especially around Universal Actions and how requirements will work in practice. The Government has confirmed that operational requirements and technical notes will follow later this year, ahead of the scheme launch on 1st January 2026.
BPS or SFS – which is right for your farm?
Perhaps the most pressing question for many farmers is whether it’s financially better to remain with the Basic Payment Scheme (BPS) for as long as possible, or to join the SFS straight away.
From 2026, BPS payments will taper each year until they are completely phased out in 2029:
- 2026: 60% of 2025 value
- 2027: 40% of 2025 value
- 2028: 20% of 2025 value
- 2029: No BPS claims
The SFS is the future of farm support in Wales – but the best time to switch will depend on your business.
Key deadlines
The scheme year runs from 1st January to 31st December. This means that if you intend to claim under the SFS, you must be meeting Universal Action requirements (including habitat and woodland maintenance) from 1st January 2026.
However, farmers have until the 15th May Single Application Form (SAF) closing date to decide whether to submit a claim for SFS or BPS. You’ll also need to declare on your SAF that you’ve complied with the scheme requirements from 1st January.
Using the Welsh Government Ready Reckoner
Farmers can estimate their indicative SFS Universal Payment or BPS taper 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 payment.
You’ll need your 2025 SAF summary and SFS data confirmation form. Our team can guide you through the calculation and help interpret the results.
The SFS data confirmation form is available until 31st October 2025 and allows you to review and amend habitat areas on your land. You will also have another opportunity to do this via the SAF form in 2026.
Quick facts
- Universal Payment 2026: Matches your 2025 BPS level, providing stability during the transition.
- Stability Payment: £1,000 bonus for farms ≤100 hectares joining in 2026.
- No turning back: Once you leave BPS, you cannot opt back in – it’s vital to get advice before making your decision.
- Additional funding potential: Optional and Collaborative actions provide extra payments for environmental enhancements, farm improvements, and collaborative projects.
How CXCS can help
At CXCS, our expert team can guide you through every stage of the transition from BPS to SFS.
We can help you:
- Understand your options: Compare BPS vs. SFS and identify which is financially best for your farm.
- Understand and check eligibility: Receive advice and guidance on the Universal Layer and the 10% habitat requirement.
- Streamline applications: Complete and submit applications accurately through Rural Payments Wales (RPW) Online.
- Ensure compliance: Receive guidance on Universal Action evidence, Opportunity Plans, habitat management, and environmental requirements.
- Plan for the long term: Look beyond 2026, considering the full SFS rollout and your farm’s sustainability.
Booking a consultation with our Stewardship & Grants team
Book your initial consultation with our Stewardship & Grants team for expert guidance on the Sustainable Farming Scheme by calling 01981 590514.