Welsh government issues £14m as part of SFS 'preparatory phase'

Next year will see the roll out of schemes providing support to farmers in advance of the introduction of SFS
Next year will see the roll out of schemes providing support to farmers in advance of the introduction of SFS

The Welsh government has announced that £14 million will be available to farmers via five schemes in the lead up to the transition to the SFS.

The schemes are part of the Sustainable Farming Scheme (SFS) 'preparatory phase', Wales' post-Brexit scheme which will be rolled out in 2026.

As part of this phase, an investment of £14 million will be made for the agriculture and horticulture sectors during 2025.

Three of the schemes are now open with another two opening next year, the Welsh government said today (4 November).

The SFS will begin in 2026, with the government previously announcing it would be delayed due to persisting concern among farmers.

Farm leaders have long warned of the impacts of aspects of the proposals contained within the SFS outline – not least the 10% tree planting and habitat requirements – on the sector’s viability.

This mounting concern has led to mass protests across Wales, as well as the creation of a symbolic display of 5,500 pairs of wellies on the steps of the Senedd, representing the 5,500 jobs forecast to be lost if the SFS goes ahead.

But Wales' Deputy First Minister with responsibility for rural affairs, Huw Irranca-Davies, said today that the preparatory phase funding was intended to give 'reassurance' to farmers.

He said: “We intend to help, guide and support eligible Welsh farmers and growers as we finalise and move towards the SFS.

“I’d encourage all farmers to see how the funding available through the preparatory schemes can help provide stability and resilience to their businesses as we move towards the introduction of the SFS in 2026.

“We have been working with the ministerial roundtable at pace to develop a revised outline of the Sustainable Farming Scheme before it is subject to further analysis and modelling."

What are the 'preparatory phase' schemes?

The 2025 preparatory phase will include a number of schemes which will aim to support to farmers in advance of the introduction of SFS.

These include:

• Habitat Wales Scheme will be offered in 2025 with all eligible individual farmers able to apply

• Existing Habitat Wales Scheme Commons agreements will be extended for 2025

• The Organic Support Payment will be maintained for 2025

• An extension to Farming Connect to 2026, which will continue the knowledge transfer and innovation support on farms

• A new Integrated Natural Resources Scheme will support farmer-focussed partnerships delivering nature-based solutions across a landscape, catchment or on a pan Wales scale