As we continue to navigate the challenges of climate change, nature conservation, and sustainable food production, the Welsh Government is making significant strides in the design of the Sustainable Farming Scheme (SFS). Huw Irranca-Davies MS, the Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs, recently shared an update on the progress made so far, and the plans for the future.
A Collaborative Effort
Since the publication of the Scheme Outline in November, the Welsh Government has been working closely with a wide range of stakeholders to shape the final design of the SFS. Key partners include the Ministerial Roundtable, Officials Groups, and a newly established Trees and Hedges Stakeholder Delivery Group. These groups are crucial in helping ensure the scheme meets the needs of farmers while also delivering the broader goals of environmental sustainability, biodiversity, and food security.
The goal is to have final decisions in place this summer, ahead of the scheme’s launch in January 2026. This timeline is ambitious but necessary, given the scale of the task at hand.
Supporting Farmers Through the Universal Payment
One of the central elements of the SFS is the Universal Payment, designed to recognise the wide-ranging benefits that sustainable farming brings to the economy, society, and environment. By focusing on sustainable farming practices, the scheme aims to improve animal health and welfare, tackle the climate and nature emergency, and ensure that food production remains viable and resilient for the future.
Farmers will receive a Universal Baseline Payment based on the size of their farm. This payment offers a degree of certainty for farmers, providing a stable financial foundation while they work towards meeting the scheme’s requirements. The Welsh Government is continuing to work closely with the Ministerial Roundtable to refine the details of these requirements, known as the Universal Actions, and to ensure the scheme supports farmers in meeting them.
Optional and Collaborative Actions
In addition to the Universal Actions, the Welsh Government is also progressing with the development of Optional and Collaborative Actions. These actions will be available from 2026 and are designed to help farmers who wish to go above and beyond the Universal Actions. By participating in these additional measures, farmers will be able to deliver more targeted outcomes, not only benefiting their businesses but also contributing to the wider goals of climate action, nature conservation, and community wellbeing.
These Optional and Collaborative Actions will allow farmers to tailor their efforts to meet specific needs, creating a more flexible and responsive approach to sustainable farming.
Evidence-Based Design
The design of the SFS is being driven by evidence. An updated evidence base is being developed, including economic analysis and impact assessments, to ensure the scheme is well-aligned with Sustainable Land Management objectives. Huw Irranca-Davies has made it clear that no final decisions will be made on the scheme’s design until this evidence has been fully reviewed. This ensures that the final scheme is not only effective but also fair and equitable for all involved.
Continued Support for Farmers
While the SFS is still in development, the Welsh Government continues to support farmers through the transition. This includes maintaining the Basic Payment Scheme at £238 million and offering a range of preparatory schemes to help farmers prepare for the changes ahead. In total, the Welsh Government is investing £366 million in agriculture this year, demonstrating its commitment to supporting the sector during this crucial period.
Looking Ahead
There’s still much work to be done in the coming months, but Huw Irranca-Davies is grateful for the ongoing support and collaboration from stakeholders. The Welsh Government is committed to keeping farmers at the heart of this process, and their feedback will continue to shape the final design of the scheme.
The final details of the SFS will be shared with the Senedd and stakeholders later this summer. This will be accompanied by plans for continued collaboration to help farmers transition into the new scheme and make the most of the opportunities it offers.
Read more at: https://www.gov.wales/written-statement-sustainable-farming-scheme-sfs-scheme-design-update
Please visit our Welsh website for further information on agricultural compliance in Wales.