SFS Wales

Scheme Changes

The Welsh Government released further details on the Sustainable Farming Scheme (SFS) on the 25th November.  This sees significant changes made to the scheme since the consultation was issued last year.  The most eye-catching move has been the dropping of the 10% tree-cover requirement.

The document that has been published (see https://www.gov.wales/sustainable-farming-scheme-proposed-scheme-outline-2024-html) is described as an ‘interim position’.  The Government is keen to point out that this is not the final scheme and consultations will continue.  Economic analysis and impact assessments will also be carried out.  The final scheme will be published in summer 2025 ahead of the 1st January 2026 start date.  The current document also does not contain any payment rates.  The Welsh Government is likely waiting to see what it is allocated in Spring’s Spending Review before being able to make this decision. 

The main changes to the SFS are;

  • removing the Scheme Rule to have 10% tree cover. This was one of the most contentious elements of the original plans. Universal Action 13 (UA13) has been re-written so that each farm will have to produce a plan to identify the opportunities for planting additional trees and creating new hedgerows across the farm.  There will be no specific farm-level percentage targets however; although there will be scheme-level targets on woodland creation.  There will be grants available for hedges and trees under the Optional Actions tier of the SFS.  The other ‘Scheme Rule’ of having 10% Habitat Area across the farm is being retained.  There is the option to create temporary habitat to meet this requirement, however
  • the overall number of Universal Actions has been reduced from 17 to 12. UA4 – Multispecies cover crop; UA6 – Managing modified peatland; and UA10 – Ponds and scrapes, have all been dropped.  UA15 to 17 have been combined into a single, simplified, ‘Animal welfare’ Universal Action.  Most of the Universal Actions that have been dropped have been moved into the Optional Actions – the second tier of the scheme.  Many of the UAs that have been retained have also been revised – with 10 out of the remaining 12 being amended
  • the Universal Baseline Payment will be available on Common Land – based on the number of grazing rights
  • payments for Universal Actions will be available on Sites of Special Scientific Interest (SSSI)

Details of the changes were announced by the Welsh rural affairs minister Huw Irranca-Davies at the Royal Welsh Winter Fair.

Preparatory Schemes

Until the SFS opens in 2026, there will be a ‘Sustainable Farming Scheme Preparatory Phase of Activity’ with a number of schemes available.  In addition to those outlined at the end of July (Habitat Wales Scheme, Organic Support Payment and the Integrated Natural Resources Scheme) the following grants will also be available, with some already open;

  • Growing for the Environment – open from 4th November to 13th December 2024 for funding towards a range of spring and summer crops, such as mixed leys, protein crops and unsprayed cereals.
  • Agricultural Diversification and Horticulture Scheme – open from 4th November 2024 to 17th January 2025, provides support for livestock enterprises that are not traditional in Wales e.g. sheep or goat milking enterprise or growing of novel or alternative crops.
  • Small Grants – Environment – due to open 13th January 2025 to 21st February 2025, although no announcement has been given as to which theme this will be out of Carbon, Water or Landscape and Pollinators
  • Small Grants – Efficiency – due to open from 3rd March to 11th April, supports capital investments in equipment and technology that have been pre-identified.

In addition to these new announcements a reminder that the Woodland Restoration Scheme has just opened and will close on 28th February.  Details of all the schemes can be found via https://www.gov.wales/rural-grants-payments

If you found this article useful, there are numerous additional articles published each month on our Professional Update bulletin service. You can access a no obligation 90-day free trial via the link below.

Sign up to the Professional Update