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Sustainable Farming Scheme
Sustainable Farming Scheme 2026 – Full Guidance & Resources
Overview of the scheme
The Sustainable Farming Scheme (SFS) launches on 1st January 2026, gradually replacing the Basic Payment Scheme (BPS), which is being phased out by 2029. The SFS is designed to:
- Support sustainable farming practices across Wales
- Encourage environmental stewardship and biodiversity
- Ensure long-term financial sustainability for Welsh farms
The scheme introduces a tiered payment system and opportunities for farms to participate in collaborative projects, rewarding environmentally responsible farming while maintaining productivity.
Payments & funding options
Universal Payment
- Guaranteed payment in 2026, matching your 2025 BPS level.
- Provides certainty during the first year of SFS rollout.
Optional Actions
- Extra payments for activities such as hedgerow management, tree planting, or soil health improvements.
- Designed to enhance the environmental performance of individual farms.
Collaborative Actions
- Projects carried out jointly by multiple farms or community groups.
- Funding supports shared environmental initiatives, water management projects, or habitat creation.
Stability Payment
- One-off £1,000 bonus for farms ≤100 hectares joining in 2026.
Deciding which option is right for your farm
- Compare BPS vs. SFS: Analyse projected income and choose the option that best supports your farm’s finances.
- Use the Ready Reckoner Tool: The Welsh Government provides a Ready Reckoner to estimate payments. Enter data from your 2025 SAF summary and SFS Data Confirmation form.
- Plan Ahead: Consider how your choice impacts long-term farm sustainability, funding opportunities, and compliance requirements.
FAQs
Q: When do I need to decide whether to claim SFS or BPS and submit my claim?
A: The scheme year runs from 1st January to 31st December, so you must meet the requirements of the Universal Actions, including habitat and woodland maintenance, starting 1st January 2026. The claim for both SFS and BPS needs to be completed via the SAF form by 15th May 2026.
Q: Can I return to BPS if I leave?
A: No. Once you leave the Basic Payment Scheme (BPS) and join SFS, you cannot opt back in. Review all options carefully before making a decision.
Q: How do I calculate my SFS payments?
A: Use the Welsh Government Ready Reckoner Tool to estimate your Universal, Optional, and Collaborative payments. 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.
Q: What support is available from your team?
A: Our Stewardship & Grants team can:
- Compare BPS vs. SFS to identify the best financial option for your farm
- Identify funding opportunities through Universal, Optional, and Collaborative actions and walk you through the scheme requirements
- Complete and submit your applications via RPW Online
- Advise on evidence requirements and eligibility such as habitat management and Opportunity Plans
Q: Are there payments for smaller farms?
A: Yes. Farms up to 100 hectares joining SFS in 2026 are eligible for a £1,000 Stability Payment.
Q: What are Optional and Collaborative Actions?
A: Optional Actions allow farms to receive extra funding for environmentally friendly activities such as hedgerow management, tree planting, soil improvement, or biodiversity projects. Collaborative Actions involve two or more farms working together on shared environmental initiatives, water management projects, or habitat creation.
Q: How do I submit my SFS application?
A: Applications are submitted via Rural Payments Wales (RPW) Online. Our team can help ensure applications are accurate and submitted on time.
Q: What happens if I miss the SFS application deadlines?
A: Late applications may result in reduced payments or exclusion from funding opportunities. Planning ahead helps avoid delays or errors.
Q: How will the SFS affect my farm’s long-term planning?
A: SFS rewards sustainable and environmentally responsible farming practices. Early planning ensures maximum funding, compliance with regulations, and long-term profitability.
Q: Where can I get more information about the scheme?
A: Official guidance and tools are available on the Welsh Government website, including the Ready Reckoner Tool and SFS guidance.
Booking a consultation with our Stewardship & Grants team
Ready to get tailored guidance for your farm? You can book an initial consultation in three ways:
- Online: Complete our online form below and a member of the team will get back to you promptly.
- Phone: Call us on 01981 590514 to speak directly with an expert.
- Email: Send your enquiry to info@cxcs.co.uk and we’ll arrange a consultation that suits your schedule.
Our team will guide you through:
- Comparing BPS vs. SFS for your farm
- Estimating Universal, Optional, and Collaborative payments
- Completing and submitting RPW Online applications
- Planning for long-term sustainability and compliance
Our team is here to support your farm every step of the way and make sure you’re fully prepared for the SFS rollout in 2026.
Additional resources & guidance
- The Sustainable Farming Scheme Guide
- Sustainable Farming Scheme: frequently asked questions
- Welsh Government SFS Ready Reckoner Tool
- How to Complete the Ready Reckoner Guide
- Contact our Stewardship & Grants team: 01981 590514