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.

THE WELSH GOVERNMENT is set to unveil key details of its long-awaited Sustainable Farming Scheme, due to launch in 2026 with a transition period leading up to the withdrawal of the Basic Payment Scheme (BPS) by 2030. Following a period of extensive co-design through Ministerial Roundtables and Cabinet discussions, the Deputy First Minister will formally announce the scheme on Tuesday.

Responding to the development, Soil Association Head of Policy (Wales), Andrew Tuddenham, said: “After years of debate and design, the time for delay has passed. The environmental challenges and threats to food resilience we face are more urgent than ever, and pressures on public finances are intensifying.

“The Universal layer of the Sustainable Farming Scheme, based on a ‘whole farm’ approach to sustainable food production, is both ambitious and pioneering—not just for Wales, but for the UK as a whole. It is a promising foundation.

“To succeed, the scheme must sustain and strengthen nature-friendly farming in Wales. That means the Welsh Government must now commit to robust funding for the Optional and Collaborative layers and support farmers in accessing these opportunities.

“We welcome the inclusion of requirements to help farmers assess their carbon balance and protect soils from damage due to high-risk cropping and management. We’re also pleased that support for organic farmers will continue in 2026 through the Optional layer, alongside funding for organic conversion.

“However, there remains uncertainty. We await further details from the Welsh Government later this year on the budget and payment structure for Optional and Collaborative actions—an area of real concern for those who are ready to go further now.”

SENEDD Members criticised the lack of an economic impact assessment and long-term certainty after the Welsh Government unveiled revised financial support for farmers.

Samuel Kurtz, the Conservative shadow rural affairs secretary, warned of broken trust over the heavily criticised and protest-plagued sustainable farming scheme (SFS).

Ponting to a poll showing only 3% of farmers trust Labour Welsh ministers, he said the industry waited more than seven years for clarity on replacements for EU subsidies.

Mr Kurtz, who is from a farming family, criticised plans to cut the basic payment scheme (BPS) by 40% for those who choose not to sign up to the SFS.

He said: “This reflects what would have happened had the SFS launched in 2025 but it didn’t launch… so, now farmers are being punished for that failure.”

Warning of a cliff-edge overshadowing the scheme, Mr Kurtz expressed concerns about the total £340m budget which would be worth closer to £500m if it had increased with inflation.

He suggested the revised SFS prioritises tree planting over food security.

The Tory concluded: “You could promise the finest scheme in the world but if the economic impact assessment shows it leads to job losses, livestock cuts and falling incomes then farmers will rightly reject it as they did before.

“What’s deeply troubling is that no economic assessment has been published alongside this announcement today… without it, you’re asking farmers to take a blind leap of faith.”

Huw Irranca-Davies, Wales’ Deputy First Minister, replied: “We’ve analysed the potential impacts of the scheme and that has helped us make the decisions that we’ve come to.

“But just to be crystal clear: these are scenarios – not forecasts, not predictions – so we will keep the scheme under review as we gather further evidence.” He told the Senedd an impact assessment will be published in September.

Llŷr Gruffydd, Plaid Cymru’s shadow rural affairs secretary, described the revamped scheme as an improvement but cautioned that fundamental questions remain unanswered.

He raised farmers’ calls for clarity to provide long-term certainty: “I haven’t seen that in sufficient measure… it’s disappointing we’ve only had a one-year funding commitment.”

Mr Gruffydd added: “You also say that shifting the balance of budgets from the universal action to optional and collaborative actions will happen. You don’t tell us when, you don’t tell us how much – and, again, that will ring alarm bells.”

The politician described condensing the transition from the BPS to SFS as the wrong approach, with a 40% drop in the first year “too significant”.

He warned of “big gaps” in the details. “It is an improvement but a lot of questions need answering,” he told the Senedd, with Mr Irranca-Davies replying: “I acknowledge that.”

Mr Irranca-Davies said the “landmark” revised scheme, which starts in January, represented a new agreement between farmers and the people of Wales.

In a statement on July 15, he told the Senedd the Welsh Government has changed its approach to tree planting, moving away from the proposed 10% tree cover on every farm.

Mr Irranca-Davies, who is responsible for rural affairs, explained farmers will be asked to plant 0.1 hectare by the end of 2028 or have plans in place by the end of March 2029.

He said: “We’re proposing enhanced payments for those planting in the first three years,” stressing farmers will not be expected to plant on their most productive land.

Mr Irranca-Davies told Senedd Members the aim is to plant at least 17,000 hectares by 2030, with an aspiration of 21,500 hectares, pledging to review progress.

“Change isn’t easy,” said the Labour MP-turned-Senedd Member. “This scheme is a big change but it’s a change we believe is good for farming, production and the environment.

“I believe and hope the majority of farmers join the scheme. The BPS is available for those outside the SFS, although reduced by 40% next year.”

Labour’s Lee Waters, a former minister, suggested the Welsh Government has lowered its immediate ambitions by abandoning a target of 43,000 hectares by 2030.

Mr Irranca-Davies said the 22,000 target was based on “practical and pragmatic” advice from the UK climate change committee rather than a “shoot-for-the-stars straight line”.