UPDATE
On 15th July, the Welsh Government (WG) published a detailed outline of the Sustainable Farming Scheme (SFS), proposed to commence from 2026. It also includes the proposed payment rates. Our first website article published on 17th July talks about the announcement and the headline payment rates (Selby Rural Website Article 17th July 2025)
TOP 10 POINTS!
With so much being reported and a 200 + page document to digest (which unfortunately does not have page numbers!) we have summarised some of the key points and items for consideration. It is advised that the full scheme guidance is read in conjunction with the following points:
- Look at the “Ready reckoner” tool, which has been devised by WG to estimate your indicative SFS Universal Payment or BPS Taper value. This will give claimants a feel of what 2026 will look like in either SFS or BPS and will help aid decision making.
- SFS is to be offered on an annual basis, not as an agreement for a period of years. You do not have to enter in 2026. Once an election has been made for SFS, it cannot be reversed and go back to BPS.
- SFS can be seen as an area payment scheme but with much more required from the farmer (in comparison to BPS). This includes the Universal Code, as a contractual matter, much (but not all) derived from the Whole Farm Code with notable additions regarding maize, set out in four parts: soil protection biodiversity and habitats, trees, landscape features, the dozen Universal Actions so far as they apply to the qualifying land. Those are to be taken as a package, with choice only over the options for temporary habitat.
- There is a new Code requirement for growing maize, that it should not be grown on land with a slope of more than 12 degrees, understood to be assessed at the level of 2 or 3m square blocks within fields. It should also be undersown in areas of flood risk (payments are to be offered for this). It is currently understood that the above conditions do not apply to land that is not eligible for the payment and also on land that is not under management control. That might see land let seasonally for maize outside the scheme as it would not be occupied for ten months of the calendar year. We will see this sort of thing be challenged and developed over time.
- Rather than the “land at disposal” test of Basic Payment, SFS will require land to be under the management control of the claimant. This is usually the owner-occupier or the tenant of the land and so not a landlord or licensee.
- That management control must be for at least ten months of the calendar year for the declaration with compliance assured for the remainder of the year. This will catch a lot of claimants out or cause problems where the term of the tenancy starts of finishes without covering the minimum 10 months, land sales and purchases or people coming into farming.
- Have mapping ready for the end of the year. A new period for farmers to check this is now open until 31st October – what is fed into here will be included in the SFS database, so care and accuracy is required. It will still not seek confirmation of hedges. Farmers and landowners are encouraged to review and, where necessary, correct habitat and tree canopy mapping to ensure their land data is accurate ahead of future SFS and Habitat Wales Scheme applications. While participation is not mandatory and does not commit individuals to entering any scheme, confirming the data now can help avoid future disputes, streamline applications, and ensure eligibility for support from 2025 onwards. Data confirmation guidance can be found here.
- For farm businesses with land on both sides of the Welsh border, eligibility for the Sustainable Farming Scheme (SFS), including Universal Actions and scheme commitments, will apply only to land located within Wales. This means that key requirements—such as the 10% habitat target—will be assessed solely on the Welsh portion of the holding, with no consideration given to land in England.
- However, the Welsh Government acknowledges that some practices, like Integrated Pest Management (IPM), are implemented on a whole-farm basis. In such cases, a single, whole-farm IPM assessment may be submitted to meet the requirement for UA2 (Integrated Pest Management), without needing a separate report for the Welsh land alone.
Having attracted less attention than the initially proposed tree cover rule, the requirement that 10 per cent of the land be in semi-natural habitat has been retained. It is important to note that the required 10 per cent will be 10 per cent of the qualifying area of the farm and so, if that qualifying area of land under management control for 10 months changes, as by taking on more land such as a tenancy taken in the previous year, so will the area of required habitat. This is defined as Temporary Habitat, with permanent Habitat a possible option for a optional or collaborative layer (more details awaited). If 10% cannot be achieved, there are other options available such as fallow areas, unfertilised and unsprayed areas etc.
10. One final contrast to BPS is that the SFS can also be paid on scrub, scree, woodland, bracken and other areas that have been ineligible (as it would have been the base with BPS), increasing the potential area for payment.
WHATS STILL TO COME?
As we try the Ready Reckoners and get to grips with the scheme guidance, we are informed that the Welsh Government continue to:
- Develop more technical guidance, expected to be out later this year
- preparing the SAF for issue at the start of March with a full scheme guidance
- the new Farming Connect is to be in place for April 2026 after tendering through the dynamic process.
- the dashboard will be open for use from June with all updating by claimants to be done by 15th January 2027 (as for later habitats etc)
- developing payment structures over the year to be ready to follow the BPS payment timetable of October and December.
- Dates for the Optional and Collaborative layers are yet to be published
If you would like to discuss SFS please contact Carys on 01829423183.