Wales Sustainable Farming Scheme (SFS) Overview
Scheme Structure
The Welsh SFS has three layers:
1. Universal Layer - 12 Universal Actions (UA1-UA12) required of all participants
2. Optional Layer - Choice-based actions with higher payments
3. Collaborative Layer - Landscape-scale, multi-farm actions
Key Details
Starts: 1 January 2026
Application period: 2 March - 15 May annually via Single Application Form (SAF)
Total budget: £238 million for 2026
Administered by: Welsh Government via Rural Payments Wales (RPW)
Universal Payment Structure
All participants receive a Universal Payment for completing the applicable Universal Actions. This covers:
Universal Baseline Payment for carrying out Universal Actions
Stability Payment to support transition from Basic Payment Scheme (BPS)
Eligibility Criteria
Undertake agricultural or ancillary activities on agricultural land in Wales
Have at least 3 hectares of eligible agricultural land OR demonstrate 550+ standard labour hours
Have management control of land for at least 10 months per calendar year
The 12 Universal Actions
1. UA1: Soil Health - Soil testing on improved land (5-year cycle)
2. UA2: Integrated Pest Management (IPM) - Annual assessment of plant protection products
3. UA3: Benchmarking - Annual performance monitoring with KPIs
4. UA4: Continuous Professional Development - Minimum 6 hours learning + health & safety
5. UA5: Habitat Maintenance - Maintain existing semi-natural habitats
6. UA6: Temporary Habitat Creation - Create habitat on improved land if <10% existing habitat
7. UA7: Designated Site Management Plan - Plans for Sites of Special Scientific Interest (SSSI)
8. UA8: Hedgerow Management - Maintain hedgerows as stockproof barriers and wildlife habitat
9. UA9: Woodland Maintenance - Maintain existing woodlands for multiple benefits
10. UA10: Tree and Hedgerow Planting Opportunity Plan - Identify planting opportunities, plant 0.1ha/250 trees by end 2028
11. UA11: Historic Environment - Maintain and protect historic features
12. UA12: Animal Health and Welfare - Work with vet for proactive health approach
Scheme Objectives (Agriculture Wales Act)
Produce food and other goods sustainably
Mitigate and adapt to climate change
Maintain and enhance ecosystem resilience
Conserve and enhance countryside and cultural resources
Transition Approach
1 January - 15 May 2026: All farmers treated as meeting Universal Layer requirements
BPS payments reduced by 40% in 2026 for non-SFS participants
Phased introduction of Optional and Collaborative Actions throughout transition period to 2029
Support and Advice
Farming Connect: Training, e-learning modules, benchmarking tools
FarmData+: Benchmarking tool for UA3
Rural Payments Wales Online: Digital services and SFS maps
Key Principles
Built on trust and responsibility
Reducing unnecessary burden on farmers
Right tree in the right place (not blanket planting requirements)
Farmers decide where to plant with clear guidance
Continuous collaboration with stakeholders
This information is provided by Farmwalk based on published government guidance. Always check the latest guidance on GOV.UK.