Welsh Government Publishes Sustainable Farming Scheme Replacing EU Subsidies

Wales is set to launch the Sustainable Farming Scheme (SFS) in 2026, a comprehensive new framework designed to replace the EU-era Basic Payment Scheme by focusing on environmental sustainability and supporting farmers. The scheme introduces a Universal Payment for farmers who meet specific environmental actions, including managing at least 10% of their land for biodiversity, with additional funding for woodland creation and habitat enhancement. The Welsh Government has committed £238 million for Universal Payments in 2026, matching previous budgets to ensure financial stability for farmers during this transition. The scheme has been described as a 'once in a generation' change by industry leaders and comes after extensive consultation, negotiation, and concessions such as dropping the 10% tree cover requirement due to farmer protests. While farmers welcome the clarity and support, environmental groups express concern that the final scheme may not be ambitious enough to address Wales’ future greenhouse gas emissions and biodiversity challenges. The scheme emphasizes a whole-nation approach, balancing the vital role of farming in Welsh communities with the need to meet environmental responsibilities.