Unions, politicians and sector leaders respond to ‘once-in-a-generation’ changes in land policy

THE FINAL version of the Welsh Government’s Sustainable Farming Scheme (SFS) has been published—sparking a fierce national debate over the future of food production, land management and the economic survival of rural communities across Wales.

Due to come into force on 1 January 2026, the scheme will replace the European Union’s Basic Payment Scheme (BPS), marking the end of a decade-long post-Brexit transition. It introduces a new three-tier model of support—Universal, Optional and Collaborative—with all participating farmers required to undertake twelve baseline actions such as maintaining hedgerows, improving soil health, and managing wildlife habitats.

The Welsh Government has framed the move as a bold shift towards sustainable land stewardship. But farming unions, opposition parties and rural campaigners have expressed serious concerns about the timing, funding, and long-term consequences of the proposals.

FUW: ‘A generational milestone—but not perfect’

The Farmers’ Union of Wales (FUW) described the publication of the final scheme as a “generational milestone,” representing the culmination of years of intense discussions between the sector and Welsh Government.

FUW President IAN RICKMAN said: “We have left no stone unturned in our ambition to secure a viable post-Brexit farm support framework. This is a watershed moment for Welsh agriculture.”

The FUW welcomed several major concessions, including:

• A combined £238 million budget for Universal payments and BPS tapering;
• A reduction in Universal Actions from 17 to 12;
• Exemptions for tenant farmers;
• Removal of the controversial 10% tree cover requirement.

However, the union remains deeply concerned about the scheme’s remaining obligations, particularly the 10% habitat requirement, which many believe will reduce the amount of productive farmland available. Mr Rickman also criticised the “disappointing” tapering schedule for existing BPS payments—set to fall to 60% in 2026 and drop by 20% each subsequent year.

“We urged a gentler five-step reduction starting at 80%. Despite this milestone, we will continue to push for practical improvements as implementation begins.”

NSA: ‘Stark choice for farmers’

The National Sheep Association (NSA) acknowledged progress but warned that many producers now face a stark decision.

NSA Chief Executive PHIL STOCKER said: “Farmers must now ask themselves—do they work with government and adopt environmental delivery, or do they walk away and farm independently without public support?”

NSA Cymru’s HELEN ROBERTS noted the omission of sheep from the Welsh Government’s press release as troubling: “There will be winners and losers. Some of the actions reflect existing good practice, but we’re worried about increased red tape and a lack of clarity on long-term outcomes. The steep cut to 60% BPS is harsher than expected and creates uncertainty.”

Paul Davies MS: ‘Another blow to farmers’

Preseli Pembrokeshire MS PAUL DAVIES described the final SFS as yet another blow to farmers already struggling under government pressure.

“This is dressed up as a new approach, but it’s another blow to Welsh farmers already reeling from devastating government policies. The cut to 60% is cruel and unjustified.”

Mr Davies criticised the absence of a published economic impact assessment, accusing both the Welsh and UK governments of abandoning the rural economy.

“From inheritance tax changes to bovine TB inaction and new hoops for farmers to jump through, it’s clear that governments on both ends of the M4 have failed to support our producers.”

Samuel Kurtz MS: ‘Still no answers on funding or impact’

Welsh Conservative Shadow Rural Affairs Secretary SAMUEL KURTZ accused the Welsh Government of publishing the final SFS without full transparency or accountability.

“After seven long years, farmers still don’t know what this scheme will really cost their businesses. Labour’s relationship with rural Wales is broken,” he said.

Mr Kurtz also criticised the Cabinet Secretary for failing to release the impact assessment, which, he claims, ministers have already seen.

“I stood shoulder to shoulder with farmers on the Senedd steps last year—and I continue to stand with them against any policy that threatens food security and rural livelihoods.”

Plaid Cymru: ‘A step forward—but not far enough’

Plaid Cymru’s Agriculture and Rural Affairs spokesperson, LLYR GRUFFYDD MS, acknowledged that the final scheme had improved following sector engagement—but said serious funding questions remained unanswered.

“It’s clear that this scheme has evolved from its initial form. As the farming unions and others have rightly pointed out, the scheme is an improvement on the one originally proposed,” he said.

“While we welcome the £238 million funding for the year ahead, a one-year pledge is simply not enough. A Plaid Cymru government would guarantee that level of support in real terms as a minimum and introduce a multi-year funding cycle.”

Mr Gruffydd also raised concerns about balance across the scheme’s tiers, the structure of the transition period, and the still-undefined “social value” payment.

“We trust these issues will be addressed swiftly, because, as ever, the devil will be in the detail.”

Labour blocks call for Senedd vote

Amid mounting pressure, Welsh Labour MSs voted down a motion in the Senedd this week which would have required a binding vote on the scheme’s implementation before it came into effect.

“By voting against this, Labour has dismissed farmers’ concerns once again,” said Mr Kurtz. “Trust is at an all-time low.”

Looking ahead

The Welsh Government has pledged to publish a “ready reckoner” tool in the coming weeks to help farmers estimate the financial value of their participation in the new scheme.

The BPS tapering will begin in 2026, with recipients receiving 60% of their previous payments, and reductions of 20% annually thereafter.

An economic impact assessment—originally expected to be published alongside the final scheme—is now due in September 2025, just months before the scheme is set to begin.

Farming unions have said they will continue to work constructively with ministers, but warned that ongoing engagement will be crucial as technical guidance and implementation plans are finalised.