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”.

Nature-friendly group says Universal layer is positive step but warns Optional and Collaborative layers must not be delayed

THE NATURE Friendly Farming Network (NFFN) Cymru has given a cautious welcome to the Welsh Government’s latest announcement on the Sustainable Farming Scheme (SFS), calling it “a step in the right direction” – but warning that more must be done to support farmers already working with nature.

More details of the SFS were outlined on Tuesday (July 15) by Deputy First Minister Huw Irranca-Davies. The Universal layer of the scheme is expected to apply to the majority of farms in Wales and includes actions to improve hedgerow management, soil health, and animal welfare. It also retains the requirement for 10% of farmland to be managed as wildlife habitat – a measure NFFN Cymru says is vital to build climate resilience.

Rhys Evans, manager of NFFN Cymru, said: “This latest SFS announcement is broadly a step in the right direction from the Welsh Government. It is vital that nature-friendly farming is seen not as a burden on the taxpayer but as a sound investment in the future of food production and biodiversity in Wales.

“We’ve long campaigned for the 10% habitat requirement, so we are pleased it’s been retained. It’s a positive move that recognises the value of integrated farm habitats, both for nature and for the long-term viability of farm businesses.”

However, NFFN Cymru expressed concern about the lack of information provided on the Optional and Collaborative layers of the scheme, which are intended to support more ambitious and cooperative environmental projects.

Mr Evans said: “Many nature-friendly farmers are already going beyond what the Universal layer requires. These farmers need the Optional and Collaborative layers to support their work. Without it, there’s a real risk that those doing the most for nature will receive the least reward.”

The group also warned that SFS payment rates may fall short. Some habitat payments under the new scheme are reportedly lower than those under older agri-environment schemes. NFFN Cymru says more generous funding through the additional scheme layers will be crucial to encouraging uptake.

Vice-chair Tony Davies, who farms in the Elan Valley, welcomed the decision not to apply severe payment caps to habitat funding, as was the case under the interim Habitat Wales Scheme.

He said: “As someone with a large area of diverse habitats, that’s an important change. The woodland maintenance payments are also a good sign, but we now need the Welsh Government to push ahead with the Optional and Collaborative layers.”

Mr Evans added: “Nature-friendly farming can deliver high-quality food, help tackle the climate and nature crises, reduce flooding, improve wellbeing, and safeguard the future of Welsh rural communities. With climate change already hitting our farms, the time to act is now.”

Senedd Member slams payment cut and lack of economic impact assessment

LOCAL Senedd Member Paul Davies has criticised the Welsh Government’s new Sustainable Farming Scheme (SFS), warning that it fails to support Welsh farmers and may force some to question whether to continue in the industry.

The SFS, which replaces the EU’s Common Agricultural Policy, is set to launch on 1 January 2026. Under the voluntary scheme, farmers can apply for support by completing twelve “universal actions” relating to environmental and land management practices. These include soil health planning, habitat maintenance, and hedgerow management.

However, Mr Davies says the real blow is the decision to reduce Basic Payment Scheme (BPS) support to 60% of current levels in 2026, with payments expected to taper further in future years.

“However this is dressed up, it’s another blow to Welsh farmers, who are already reeling from a series of devastating government policies from both the Welsh Government and the UK Government,” Mr Davies said.

He described the cut in BPS as “cruel” and said the lack of an Economic Impact Assessment made it impossible to properly understand the likely effect on the agricultural sector.

“The decision to cut BPS payments to 60%, when it was widely believed to be around 80%, is just cruel and shows the Welsh Government’s lack of commitment to our food producers,” he said. “The failure to produce an Economic Impact Assessment means we’re not able to understand exactly how much this will change the industry.”

Mr Davies also challenged the idea that environmental aims must come at the cost of farmers’ livelihoods.

“The Welsh Government’s commitment to addressing climate change does not have to compromise Welsh farmers,” he said. “But they have made a political choice that will force some farmers to consider whether it’s worth farming at all.”

The Preseli Pembrokeshire MS said that both the UK and Welsh Governments had failed to support agriculture.

“Whether it’s changes to Inheritance Tax, inaction on Bovine TB, or jumping through hurdles via the new Sustainable Farming Scheme, governments at both ends of the M4 have let down our farmers.”

Shadow Rural Affairs Secretary and local Member of the Senedd Samuel Kurtz said: “After 7 long years, farmers can now see what future support may look like, but they remain in the dark as to the economic impact of the scheme.

“Labour’s relationship with farming and rural Wales is broken; from its failure to eradicate Bovine TB to the Family Farm Tax. This new scheme, released without an economic impact assessment, does little to rebuild that trust. Questions remain over funding, tree planting and why has the Cabinet Secretary did not release the economic impact assessment when he has had sight of it?”

Kurtz, a farmer’s son, added: “I stood shoulder to shoulder with protesting farmers on the steps of the Senedd last year, and I continue to stand by their side against any policy that jeopardises food security, threatens rural jobs and negatively impacts the livelihoods of rural families.”

The Sustainable Farming Scheme has drawn a range of responses from the farming and conservation sectors. While the Tenant Farmers Association welcomed greater support for tenants and revisions to key rules, environmental groups such as Wildlife Trusts Wales warned the scheme fails to go far enough to protect nature.