Updated proposals to Wales's Sustainable Farming Scheme received a positive response from farming unions as the Royal Welsh Winter Fair opened today (Monday, November 25).

Following the unprecedented response to the Keeping Farmers Farming consultation earlier this year, Welsh Government has today published its updated proposals for the primary source of government support for the future of Welsh farming starting in 2026.

The Sustainable Farming Scheme Outline sets out Welsh Government’s interim position following an intense programme of meetings with farming organisations and wider stakeholders over the summer months and into the autumn.

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Revised proposals include:

• Removing the scheme rule to have 10% tree cover. This is replaced with a new Universal Action requiring an undertaking for a tree planting and hedgerow creation opportunity plan. The set figure for tree cover has been replaced with a scheme-wide target which will be set after discussions with the Ministerial Roundtable.

• Merging the three Animal Health, Welfare and Biosecurity actions into a single simplified action

• Making payments at the Universal Layer on Sites of Special Scientific Interest (SSSI)

• Including grazing rights on common land within the Universal Payment

• Reducing the overall number of Universal Actions from 17 to 12.

The outline plan is available in full here.

Speaking at the Royal Welsh Winter Fair, 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 published today 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 Welsh Government has committed to undertake 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 does currently.

“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 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."

In conclusion, Mr Jones said: “Today marks an important step forward in the development of the SFS. Whilst there remains a huge amount of work to be done on many aspects of the scheme, including the detail under each Universal Action and payment rates, I am confident that if we continue to work in partnership the SFS can help to deliver on our ambitions for food, nature, climate and communities.”

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.”

NFU Cymru has put in place a series of roadshows the length and breadth of Wales early next month to share with members the updated Sustainable Farming Scheme Outline, taking the views of members ahead of the next phase of work that will begin in the New Year.

Further information on Welsh Government’s SFS Outline Proposals can be found on the NFU Cymru website, along with the dates of NFU Cymru’s roadshows