THE WELSH GOVERNMENT announced its intention to proceed with a much-changed Sustainable Farming Scheme on Monday, November 25.
Speaking at the Royal Welsh Agricultural Society’s Winter Show, Deputy First Minister Huw Irranca-Davies said: “It was clear changes were needed – we said we would listen – and we’ve done just that.”
UPDATED PROPOSALS
The latest update contains important changes to previous proposals, including:
- The framework of a Universal layer for all has been retained, but the overall number of Universal Actions has been reduced, with additional Optional and Collaborative Actions for those who choose to do more. The number of Universal Actions has been reduced from 17 to 12, with changes made to 10 of the 12 that remain.
- The farm-level figure for tree cover has been removed. It will be replaced by a scheme-wide target, which will be agreed upon after discussions with the Ministerial Roundtable, and a new Universal Action for a tree planting and hedgerow creation opportunity plan. Farmers will, therefore, no longer be asked to have a minimum of 10% tree cover on their land.
- Farmers who apply for the Scheme will be able to decide where and how many trees/hedges they want to add to their farm and get funding to support them through the scheme’s Optional Layer.
- The Animal Health, Welfare and Biosecurity actions have been merged into a single simplified Universal Action to focus discussions with the farm vet on improved animal health and welfare outcomes.
- The requirement that all farms have wash stations has been moved to an Optional Action, recognising that the biosecurity needs of individual farms can be very different.
- Confirmation that additional payments for social value will be made under the universal part of the scheme. This will represent the wider benefits which come from a sustainable agricultural industry.
- Taking account of Sites of Special Scientific Interest (SSSIs) and common land rights in the Universal Payment. Further support for both will also be available as Optional and Collaborative Actions.
“MORE WORK TO DO”, SAYS MINISTER
Given the Scheme’s importance in contributing to Wales’ nature and biodiversity objectives, the requirement that farmers manage at least 10% of their farm as habitat has been maintained. Additional options to create temporary habitats are being considered to help farmers meet this requirement. These should be suitable for all farming systems and land ownership.
Huw Irranca-Davies said: “Farmers are at the heart of communities right across Wales, and they play a crucial role in our economy and food production. As stewards of our land, they also have a key role to play in protecting and restoring nature and tackling the climate emergency.
“I am pleased to be able to publish a revised Scheme Outline today, which sets out the significant progress we have made in collaboration with the Roundtable.
Whilst the progress we have made collectively is significant, this is not the final Scheme. The Roundtable has agreed that the Scheme Outline published today will be used to undertake an updated economic analysis and impact assessment.
“I am extremely grateful for the immense effort that all members of the Roundtable, an Officials Working Group and the Carbon Sequestration Evidence Review Panel have made.
“We are developing a scheme that is designed to support all farmers in Wales based on the completion of a set of Universal Actions. These actions will be familiar to farmers in Wales, whether for beef, dairy, arable, upland, lowland, or extensive. They are actions many of them take on a day-to-day basis.
The final Scheme decision will be made next summer based on further discussions at the Ministerial Roundtable and evidence, including the economic analysis and impact assessment. This will be the earliest opportunity for us to provide details of the payment rates.
“I remain committed to listening to and working with our stakeholders to ensure the final Scheme we deliver next year is a Scheme that will help support the economic resilience of farming businesses, the sustainable production of food, our climate and nature objectives and our rural communities for current and future generations
“I believe the changes set out today to the Scheme Outline will make the Scheme available to all farmers who wish to participate and strengthen the Scheme’s contribution to our climate and nature commitments.
“We’ve come a long way – and there is still more work to do.”
FARMING BODIES WELCOME CHANGE IN MOOD MUSIC
The Welsh Government’s approach to working with farmers to deliver the Sustainable Farming Scheme is now markedly different from that adopted when Lesley Griffiths held the Welsh Government’s Rural Affairs brief. Mr Irranca-Davies has impressed farming unions with his more emollient and constructive approach to issues surrounding the Scheme’s operation and deliverability.
Those improved relationships have led to a more positive response to the Deputy First Minister’s proposals than those pushed by his predecessor.
Country Land and Business Association (CLA), Victoria Bond Director – Wales, said: “We are proud to have played a key role in the Sustainable Farming Scheme Ministerial Roundtable process, representing our members’ views and driving forward practical solutions.
“The updated SFS shows a shift in the right direction. This progress reflects the impact of stakeholders like the CLA working constructively with government and the Deputy First Minister’s commitment to collaboration. While there is much more to be done, this milestone demonstrates that positive change is possible when our sector’s expertise is truly heard and valued.”
FUW President Ian Rickman said: “The workload of the three stakeholder groups over recent months has been intense as we’ve worked through and agreed, in principle, a revised Scheme design. We’ve welcomed the collaboration and opportunity to engage at this level and believe we are now in a better place as a result.
“Alongside other important, ongoing issues such as bovine TB, water quality regulations and inheritance tax relief, revising this Scheme has remained a key priority for the FUW since we fully understand how important farm support is to the viability of our farm businesses, the rural economy and the wider supply chain here in Wales.”
Mr Rickman continued: “The Deputy First Minister’s announcement, however, only marks the end of the beginning, and there remains a high level of detail to work through and confirm, with the updated economic analysis and impact assessments of crucial importance.”
“Central to this is the Welsh Government’s commitment to develop a Social Value Payment that reflects the actions Welsh farmers undertake that contribute to all four Sustainable Land Management objectives.”
He concluded: “With a more accessible and flexible Scheme design following significant changes – including the removal of the 10% tree cover Scheme Rule and a reduction in the overall number of Universal Actions – we must now ensure that the associated budget and payment methodology deliver real economic stability for our family farms in Wales as we face a backdrop of many other challenges.”
FUNDING THE KEY FOR SCHEME’S SUCCESS
Nature-Friendly Farming Network Cymru manager Rhys Evans said: “Overall, the changes to the SFS are broadly positive. We welcome the retention of the 10% habitat requirement, which has been a key priority for us. Habitats can include hay meadows, herbal leys, marshy grasslands, hedgerows, wood pasture and unimproved ffridd or hill land, all of which contribute towards food production in Wales and can help improve farm business resilience.
“Tree planting on farms should be guided by the principle of planting the right tree in the right place for the right reason. We had concerns that mandatory tree cover policies might lead to unintended outcomes, such as losses of biodiversity or food production. Therefore, we welcome the flexibility for farmers to work with advisors to draw up tree planting and hedgerow creation plans which suit them.
“However, it is crucial that the SFS is adequately funded to ensure its effectiveness. In particular, the Optional and Collaborative layers, which are the most ambitious and hold the greatest potential for benefiting nature, need sufficient investment. Payment rates must reflect the value of these measurements. Without proper funding, ambitious plans – like those for agroforestry – risk staying on paper instead of becoming reality.
“As farmers we are being asked to deliver numerous outcomes: food production, climate change mitigation, nature recovery, reducing flood risk, access and recreation opportunities, as well as being the cornerstone of rural communities, economies and the Welsh language. We are more than ready to deliver, but we need to be supported fairly to do so.”
NFU Cymru President Aled Jones said: “Following the conclusion of the Sustainable Farming Scheme consultation in March, we welcome the partnership approach the Deputy First Minister, Huw Irranca-Davies MS, has put in place to listen to the concerns of the farming industry. We are pleased to have been involved with the Ministerial Roundtable and the sub-groups, and the updated SFS Scheme Outline sets out the progress that has been made as a result of this process.
Mr Jones added: “Welsh Government has confirmed this is not the final Scheme design, and Welsh Ministers have not made any final decisions. NFU Cymru is pleased that the Welsh Government has committed to undertaking economic analysis and an impact assessment of the revised proposals to understand what the scheme will mean for farmers and wider society. This work is vital, and NFU Cymru remains clear that the SFS should provide the same level of stability to farm businesses, our rural communities, and the supply chain as the Basic Payment Scheme currently does.
“There is much more work to do in the coming months on the final scheme detail as well as a number of fundamental aspects of scheme design, including the payment methodology and payment rates ahead of the publication of the final scheme, expected in July 2025.
“Securing the Welsh Government’s commitment to a well-funded, multi-annual budget for the scheme that matches the scale of our ambition for sustainable growth of the food and farming sector, alongside the delivery of key environmental outcomes for society, is also going to be crucial. We have seen the budget for farming eroded by inflation and subjected to in-year cuts. The need to restore and enhance the budget cannot be overstated.”
