THE WELSH GOVERNMENT has announced significant updates to its Sustainable Farming Scheme (SFS), marking a key step in its efforts to balance agriculture, climate change, and biodiversity goals. Deputy First Minister Huw Irranca-Davies revealed the revisions at the Royal Welsh Winter Fair on Monday (Nov 25), pledging to deliver a scheme that meets farmers’ needs while addressing environmental commitments.
The updates follow extensive consultation with farming unions, environmental groups, and stakeholders such as the Ministerial Roundtable and the Carbon Sequestration Panel. Among the major changes are:
- Streamlined Universal Actions: The number of Universal Actions has been reduced from 17 to 12, with revisions to 10 of these actions, making them more practical for farmers.
- Tree Cover Requirement Adjusted: The minimum 10% tree cover rule has been replaced with a scheme-wide target. Farmers can now choose where and how many trees and hedges to plant under the Optional Layer.
- Simplified Animal Health Action: A single Universal Action now covers animal health, welfare, and biosecurity, focusing on tailored veterinary advice.
- Flexible Wash Station Requirement: Mandatory wash stations have moved to the Optional Layer, recognizing differing biosecurity needs across farms.
- Social Value Payments: A new payment structure under the Universal Layer will reward farmers for the broader benefits their work brings to society.
The updated scheme retains the requirement for farmers to manage at least 10% of their land as habitats for biodiversity, with temporary habitat creation options under development to support diverse farming systems.
Deputy First Minister Huw Irranca-Davies highlighted the importance of working together: “Following the consultation, it was clear changes were needed—we said we would listen, and we’ve done just that.
“Farmers are central to our rural economy and food production. As stewards of the land, they have a critical role in protecting nature and tackling climate change.
“This revised outline reflects significant progress made in partnership with stakeholders. While much has been achieved, this is not the final scheme. Further discussions, economic analysis, and impact assessments will shape the final version, due next summer.”
The updates have been cautiously welcomed by industry leaders, who praised the consultation process but emphasized the need for further work.
- Victoria Bond, CLA Wales Director:“This progress reflects the impact of stakeholders working constructively with the government. Today’s update demonstrates what can be achieved when our sector’s expertise is valued.”
- Ian Rickman, FUW President:“We’ve welcomed the opportunity to engage and believe we are in a better place as a result. However, this is just the beginning. We need a budget and payment methodology that delivers economic stability for family farms.”
- Aled Jones, NFU Cymru President:“This is an important step forward. While much remains to be done, I am confident continued collaboration can help us achieve our ambitions for food, nature, and climate.”
- Rachel Sharp, Wildlife Trusts Wales Director:“Farmers must be supported to create more woodland, ponds, and hedgerows. By increasing investment in the Optional and Collaborative tiers, we can address the climate and nature crises.”
The revised scheme will now undergo updated economic analysis and impact assessments, with payment rates and final details to be determined next summer.
Deputy First Minister Huw Irranca-Davies expressed optimism about the scheme’s potential: “We’ve come a long way, and there is still more work to do. The final scheme will support rural communities, sustainable food production, and our climate goals for future generations.”
The Sustainable Farming Scheme aims to balance food production with climate and biodiversity commitments, supporting Welsh farmers in navigating the challenges of a changing world.
