Welsh Government announces interim payment schemes for farmers

Emily Price

The Welsh Government has announced a number of interim payment schemes to support farmers and landowners before the Sustainable Farming Scheme (SFS) is introduced in 2026.

A new timeframe was announced for the roll out of the controversial SFS in May after the initial proposals saw mass protests on the steps of the Senedd.

The scheme would have required farmers to farm sustainably by bringing their existing tree and woodland cover up to 10% – and earmarking another 10% for habitat.

Opposition politicians argued that this would never be practical whilst running a farm business and farming unions said the tree cover requirement represented a “major barrier” to scheme entry.

The scheme will now begin in 2026, giving the Welsh Government more time to engage with key partners.

Speaking ahead of the Royal Welsh Show on Wednesday (July 17), the Cabinet Secretary for Climate Change and Rural Affairs, Huw Irranca-Davies, said the 2025 preparatory phase will include a number of schemes which will provide advice and support to farmers in advance of the introduction of SFS.

The Schemes include:

• • Habitat Wales Scheme is offered in 2025 with all eligible individual farmers able to apply.
  • Existing Habitat Wales Scheme Commons agreements can be extended for 2025.
  • The Organic Support Payment will be maintained for 2025.
  • An extension to Farming Connect to 2026, continuing the knowledge transfer and innovation support on farms.
  • A new Integrated Natural Resources Scheme will support farmer-focussed partnerships delivering nature-based solutions across a landscape, catchment or on a pan Wales scale. It will continue the transition to a new way of supporting farmers and the vital work they do ahead of the introduction of SFS Collaborative Actions.

In addition to these five schemes, a data confirmation exercise will also be launched.

The Welsh Government says that with feedback from farmers who decide to participate will provide a “more accurate picture” of the habitat and tree cover across farms.

This is in preparation for Habitat Wales Scheme 2025 and the introduction of SFS.

Farmers who wish to apply are encouraged to complete the data confirmation exercise.

Huw Irranca-Davies said: “The announcement of the schemes is intended to give reassurance to farmers that support will continue to be available in the lead up to 2026.

“We also recognise the transition from the Basic Payment Scheme will be a significant change for many farmers, and we therefore intend to help, guide and support Welsh farmers for a number of years as we finalise and move towards the SFS.”

“We will continue to listen to the sector and work in partnership. Together we can create a future where our farmers produce the very best Welsh food to the highest standards, while safeguarding our precious environment to help tackle the climate and nature emergency.

“We will continue to work with farmers and landowners at pace through the Ministerial Roundtable to finalise the Scheme so that we can provide certainty about future support as soon as possible. Subject to budget availability, we will confirm additional 2025 support schemes later this year.

“We want to deliver a sustainable farming industry which supports thriving rural communities and the Welsh language – sustainable in every sense of the word.”

Mapping

The Farmers Union Wales welcomed the new support scheme and the data confirmation exercise ahead of roll out.

FUW President Ian Rickman said: “While we were robust in our criticism of the HWS mapping issues and significantly reduced payment rates, we do welcome the continued use of RPW Online for this mapping exercise.

“This is due to concerns around the potential costs of having to physically survey individual farms, which would have vastly reduced the financial support available to farmers in future. However, it remains vital that farmers managing their land for environmental improvements are paid fairly for their commitments, over and above income foregone and costs incurred, and the budget allocations for these schemes must reflect this.

“We continue to work through elements of the Sustainable Farming Scheme in turn as a member of the Welsh Government Roundtable, Carbon Sequestration and Officials groups. We share the Cabinet Secretary’s vision of delivering a sustainable farming industry – sustainable in every sense of the word – that continues to produce food to the highest standards and supports thriving rural communities and the Welsh language.”