Written Statement: Sustainable Farming Scheme (SFS) – Scheme Design update

I would like to update Senedd Members, stakeholders and the farming community on the ongoing work and progress being made on the design of the final Sustainable Farming Scheme (SFS) through working in partnership with stakeholders.

Since publishing the Scheme Outline last November we have continued to work closely with the Ministerial Roundtable and Officials Groups and a new Trees and Hedges Stakeholder Delivery Group who are helping to shape the Scheme design before final decisions are taken this summer and the Scheme commences in January 2026.    

We remain committed to supporting our farmers with a Universal Payment that recognises a holistic approach to the economic, environmental, social and cultural benefits that sustainable farming businesses contribute to. Through this approach we can build on sustainable farming practices to deliver high animal health and welfare standards, respond to the challenges of the climate and nature emergency and support the sustainable production of food.

In exchange for delivering the proposed Universal Actions we will provide farmers with a Universal Baseline Payment generated from the whole farm size, which will provide a welcome level of certainty for farmers. We are working at pace with the Ministerial Roundtable members to refine the detail of the Universal Actions and Scheme requirements farmers will need to be aware before joining the Scheme. We recognise there is still work to do to address remaining issues.  

We are also progressing the Optional and Collaborative Actions, a number of which will be available from 2026, to support those farmers who want to go further and build on the foundations of the Universal Layer to deliver more targeted outcomes for their business, climate, nature and the people of Wales. 

Based on the most recent Scheme Outline, an updated evidence base is being developed. This includes an economic analysis and an impact assessment considering the impact on the full range of Sustainable Land Management objectives. I repeat my previous commitment that I will not be making final Scheme design decisions before we have this evidence, and I have discussed it with the Roundtable.   

In the meantime, Welsh Government is continuing to support farmers through the transition to SFS by maintaining the Basic Payment Scheme at £238m and making available a wide range of SFS Preparatory Phase schemes. In total, the Welsh Government is supporting agriculture in Wales this year with an available budget of £366m.

There is still much work to be done this year, and I am grateful for the continued support and commitment from stakeholders. We are only able to progress with the input of all.  

I intend to share the final Scheme with the Senedd and stakeholders as soon as possible this summer. This will be accompanied by details of how we will continue to work in partnership with stakeholders throughout the remainder of the year and beyond, to support farmers’ transition into the Scheme. The Scheme will be central to delivering my vision of a thriving agricultural sector in Wales that delivers sustainable food production, helps tackle the climate and nature emergency and supports vibrant rural communities.