Launch of the Sustainable Farming Scheme (SFS)
The official publication of the Welsh Government’s Sustainable Farming Scheme (SFS), has been unveiled ahead of the Royal Welsh Show. It represents the most significant policy shift in a generation for land managers and we outline the key points for our members.
CLA Cymru has welcomed the official publication of the Welsh Government’s Sustainable Farming Scheme (SFS), unveiled ahead of the Royal Welsh Show. The long-awaited framework represents the most significant policy shift in a generation for land managers in Wales and comes after years of development following the UK’s departure from the European Union and the end of the Basic Payment Scheme (BPS).
Director Victoria Bond played a central role in the Ministerial Roundtable convened by the Deputy First Minister, alongside Senior Policy Adviser Fraser McAuley who worked on the Officials Working Group to help shape the scheme into a more practical model. Their engagement reflects CLA Cymru’s commitment to championing workable solutions for its members.
This guide is designed to help you understand what is now confirmed, what is still to come, and what actions you can take today.
What is the Sustainable Farming Scheme?
The SFS is the Welsh Government’s new land management policy, designed to reward sustainable practices while supporting rural businesses. It replaces BPS and will roll out from 2026.
It is built on three primary layers, plus two scheme requirements:
Requirement 1: Maintain 10% habitat (or create new habitat to meet a minimum 10%)
Requirement 2: Develop a carbon baseline using existing data
- Universal Layer – All farmers must complete 12 actions to receive the baseline payment.
- Optional Layer – Offers payments for more complex or targeted actions (still being finalised).
- Collaborative Layer – Designed for projects across multiple holdings at landscape or catchment scale (also under development).
The 12 Universal Actions
The 12 Universal Actions have been reduced from 17 and now are comprised as follows. These all need to be met to achieve the baseline payment.
| UA1 – Soil Health | Test soils every 5 years (improved land) |
| UA2 – Integrated Pest Management | Reduce chemical usage |
| UA3 – Benchmarking | Annual measuring and monitoring for optimal business and environmental performance |
| UA4 – Continuous Professional Development | Build on existing skills (health and safety mandatory) |
| UA5 – Habitat Maintenance | Manage semi-natural or newly created habitats |
| UA6 – Temporary Habitat Creation on Improved Land | To meet minimum 10% habitat requirement |
| UA7 – Site Management Plan | For farms with designated sites |
| UA8 – Hedgerow Management | Encourage bigger, denser hedgerows |
| UA9 – Woodland Management | Maintain existing woodland |
| UA10 – Tree and Hedgerow Planting Opportunity Plan | Create a plan and plant at least 0.1ha |
| UA11 – Historic Environment | Protect and enhance heritage features |
| UA12 – Animal Health and Welfare | With vet, monitor and support continuous improvement of livestock |
BPS Transition Timeline
Whilst initially the Welsh Government outlined a shallower taper of BPS payments, this has been amended as follows:
The Basic Payment Scheme (BPS) will be phased out over four years:
- 2026: 60% of current BPS
- 2027: 40%
- 2028: 20%
- 2029: 0% – complete withdrawal
This tapering is sharper than previously suggested and we appreciate may cause planning challenges for many businesses.
Key Details
Confirmed Details:
- Eligibility: All active farmers can apply, so long as you meet the minimum eligibility criteria
- Payment Structure:
- £70/ha for the first 70 hectares, £2/ha thereafter
Additional payments for all eligible land include:
- £107/ha for social value
- £69/ha for habitat maintenance
- £62/ha woodland maintenance
- Cap and Tapering: Payments above £25,000 will taper; there is a cap at £300,000
- Ready Reckoner Tool: An online calculator will estimate your payment but these are not guaranteed figures.
What you should do now
- Familiarise yourself with the 12 Universal Actions – Guidance is available from CLA Cymru
- Start the data confirmation process – Ensure your farm mapping and records are up to date
- Talk to us – CLA Cymru will be hosting events and providing one-to-one support
- Do not rush – If you are unsure, speak with our advisers before making any decisions
How CLA Cymru Can Help
We have been at the heart of shaping this scheme and we are here to support you every step of the way. Our team will:
- Provide detailed guidance on scheme requirements
- Support you with calculations
- Host briefings at the Royal Welsh Show on MONDAY at 10am and WEDNESDAY at 11am with our Director Victoria Bond, a key advocate on the Ministerial Roundtable and Senior Policy Advisor Fraser McAuley who was on the Officials Working Group.
- We will host SFS Surgery roadshows throughout the autumn.
- Continue to collaborate and work with Welsh Government.
- Integrate long term SFS key asks as part of our Election Manifesto.
- Share updates as new information becomes available.
If you have questions, please contact us via wales@cla.org.uk or call 01547 317085.
