SFS Update announced at Royal Welsh Winter Fair

Today at the Royal Welsh Winter Fair, Deputy First Minister Huw Irranca-Davies announced key updates to the Sustainable Farming Scheme (SFS).

CLA Cymru was proud to contribute to these discussions as part of the Ministerial Roundtable over the past 5 months. Whilst there is still much to do, there was clear movement on some issues that have been worrying our members, for which we have advocated vehemently along with colleagues.

We appreciate the Deputy First Ministers commitment to listening to the stakeholders as part of this process. Whilst there are still many challenges in play and a lot to do, there is positive movement.

This not the final version of the SFS. The final Scheme decision will be made next summer, based on further discussions at the Ministerial Roundtable and evidence including the economic analysis and impact assessment.

The main changes include:  

• Reduced Universal Actions: The framework of a Universal layer for all has been retained but with a reduced overall number of Universal Actions with additional Optional and Collaborative Actions for those who choose to do more. The number ofUniversal Actions has been reduced from 17 to 12 with changes made to 10 of the 12 that remain.
• Tree Cover: The farm-level figure for tree cover has been removed and will be replaced by a scheme-wide target, which will be agreed after discussions with the Ministerial Roundtable, and a new Universal Action for a tree planting and hedgerow creation opportunity plan.  Farmers will therefore no longer be asked to have a minimum of 10% tree cover on their land. 
• Farmers who apply for the Scheme will be able to decide where they want to add more trees / hedges on their farm, and how many, and get funding to support them through the Optional Layer of the Scheme.
• The Animal Health, Welfare and Biosecurity actions have been merged into a single simplified Universal Action to focus discussions with the farm vet on improved animal health and welfare outcomes. 
• Wash Stations: The requirement for all farms to have wash stations has been moved to an Optional Action, recognising that the biosecurity need of individual farms can be very different.
• Social Value: Confirmation that additional payments for social value will be made under the universal part of the scheme. This will represent the wider benefits which come from a sustainable agricultural industry.
• SSSI and Common Land: Taking account of Sites of Special Scientific Interest (SSSIs) and common land rights in the Universal Payment. Further support for both will also be available as Optional and Collaborative Actions.  

Given the importance of the Scheme in contributing to Wales’ nature and biodiversity objectives, the requirement for farmers to manage at least 10% of their farm as habitat has been maintained.   

To support farmers to meet this requirement, additional options to create temporary habitat are being considered. These should be suitable for all farming systems and land ownership. 

The shift from a rigid 10% tree cover requirement to a more flexible, farm-specific approach is a significant achievement, aligning environmental goals with practical farming considerations.

Farmers will no longer be required to maintain a minimum of 10% tree cover on their land. Instead, those participating in the scheme can choose where and how many trees or hedgerows to plant, with funding available through the scheme’s Optional Layer to support their plans.

The Deputy First Minister, during questions in the press conference, also confirmed that they would take an overarching approach, rather than specifics on singular farms.

CLA Cymru has actively campaigned for adaptable tree cover policies within the SFS. The adoption of a flexible, farm-specific approach marks a notable success in these efforts.

The revised scheme reflects significant adjustments after consultation, yet it arrives at a time of uncertainty for many rural businesses. Recent changes in inheritance tax rules, impacting Agricultural Property Relief (APR) and Business Property Relief (BPR), have left some members concerned about long-term financial planning.

Bond added: "These updates to the SFS are not a solution to all challenges, but they represent progress. Our members are navigating a period of upheaval, and it is vital that schemes like this support economic resilience alongside environmental ambitions."

The full scheme will be announced in Summer 2025 and our team members will remain actively involved in the roundtable and consultation as the scheme continues to evolve.

For more information and to get involved, please contact CLA Cymru at wales@cla.org.uk. Book events online here or call 01547 317085.