The Welsh government has announced that funding for the Sustainable Farming Scheme (SFS) will exceed £1 billion over the current Senedd term, which ends in 2026. The announcement was made on July 20, 2026, by Rural Affairs Minister Huw Irranca-Davies.
The SFS replaces the EU's Common Agricultural Policy (CAP) payments, which ended after Brexit. The scheme aims to support farmers in producing food sustainably while tackling climate change and enhancing biodiversity. However, it has faced criticism from farming unions who argue that the new rules are too restrictive and could force some farmers out of business.
The budget covers the period from 2025 to 2029, providing farmers with long-term financial certainty. The Welsh government says this will help farmers plan investments and transition to more sustainable practices. The announcement follows negotiations with farming groups and Plaid Cymru, which had called for a multi-year budget as part of a cooperation agreement.
Key elements of the SFS include payments for actions like planting hedgerows, reducing carbon emissions, and improving soil health. Farmers must meet baseline environmental standards to qualify for funding. The scheme is part of Wales' broader commitment to reach net-zero carbon emissions by 2050.
