Welsh farmers will benefit from a new partnership with the people of Wales that supports sustainable food production and responds to the climate and nature emergency, under the Sustainable Farming Scheme published today (15 July 2025).
The scheme is designed to secure the future of food production while also protecting the environment for generations to come. It recognises farming's vital role in Welsh communities and culture and addresses challenges like climate change and restoring nature.
The scheme will work as follows:
- the Sustainable Farming Scheme will begin on 1 January 2026 with the application form for the Universal layer of the scheme being available on the Single Application Form (SAF) via Rural Payments Wales (RPW) Online from March through to 15 May each year
- an annual Universal Payment will go to farmers joining the scheme who follow the Scheme Requirements including a set of Universal Actions. Many of these actions will be familiar to farmers in Wales, whether beef, dairy, arable, upland, lowland, extensive or intensive
- the scheme has been made less complex with fewer administrative requirements. The number of Universal Actions has been cut and built on the tried and tested processes and systems of Rural Payments Wales (RPW)
- the combination of the Universal, Optional and Collaborative layers provides a long-term stable framework to support sustainable farming in Wales. It gives stability through the Universal layer, and additional support to those who want to do more through Optional and Collaborative Actions
- all farmers entering the scheme will need to complete an opportunity plan for woodland and hedgerow creation in the first year of entry into the scheme. They will need to demonstrate progress towards their plan by the end of the 2028 scheme year
- generous support will be provided for tree and hedgerow planting in the Optional Layer, including for agroforestry, and there will be a higher payment rate for tree planting during the first 3 years of the scheme
- farmers are not expected to plant trees on their most productive land – they will decide where to plant, with clear advice and guidance to ensure the right tree in the right place
- farmers in the scheme will need to have at least 10% of their land actively managed as habitat, to benefit biodiversity and support nature recovery alongside food production. A range of temporary habitat options are available to choose from if farmers need to do more to meet the 10% requirement
For further information please select the following link New relationship between people of Wales and farmers | GOV.WALES and Sustainable Farming Scheme 2026: scheme description | GOV.WALES