Minister to reveal revised SFS plans after ‘significant progress’

Deputy first minister for Wales Huw Irranca-Davies has provided an update on the development of the Sustainable Farming Scheme (SFS) noting that “significant progress” has been made on its development.

Although progress has been made in reaching a consensus on the scheme’s design, the full details are not yet ready to be shared, said Mr Irranca-Davies, speaking at NFU Cymru’s annual conference in Llanindrod Wells on Thursday (7 November).

But the minister revealed that a revised outline of the scheme would be published soon, which would reflect the input of the Ministerial Roundtable and the Carbon Sequestration Evidence Review Panel.

See also: Welsh government releases £14m for SFS preparatory schemes

After the outline is published, further work will be done, including modelling and a revised Integrated Impact Assessment.

This will be reviewed by the Ministerial Roundtable before the final decision on the scheme design is made next year, before it begins in 2026.

The Welsh government’s plans for the SFS have sparked controversy with farmers for a number of reasons.

The scheme’s emphasis on environmental sustainability – including actions such as carbon sequestration, biodiversity enhancement, and water quality management – has raised concerns about the costs and practical feasibility of implementing these actions on farms.

The SFS includes a focus on increasing tree cover and care on farms, with the Welsh government proposing that each farm should have at least 10% tree cover and 10% habitats to receive future payments.

Farmers are concerned about the impact of these policies, if they come into legislation, on food production and farm profitability and have called on Welsh government to look at alternative options to sequester carbon, such as hedgerow planting.

“These are difficult subjects but, working together, we will find solutions,” said Mr Irranca-Davies.

“We have now the opportunity, not only to shape policies but, to shape the way in which Wales values farming and our farmers.”

Welsh farming budget

Last week’s Budget announcement by chancellor Rachel Reeves confirmed that funding for agriculture from 2024-25 has been baselined in each devolved government’s block grant.

Mr Irranca-Davies told the conference he had asked the Welsh government for an “inflation uplift” in the agriculture budget for Wales.

The Welsh government will publish its draft Budget on 10 December, which will set out spending plans for next year.

NFU Cymru understands that £340m should be forthcoming from the Treasury block grant to Welsh government for agricultural support.

President Aled Jones said: “We now look to see the budget cuts made to the Rural Affairs budget last autumn reinstated in full, maintaining the BPS [Basic Payment Scheme] at current levels for 2025, alongside a range of interventions to support the industry to meet the significant investment costs required to meet our environmental responsibilities.”