On 1st January 2026, Wales entered a new chapter of agricultural policy as the Sustainable Farming Scheme (SFS) officially launched. This scheme will become the primary source of agricultural support as the Basic Payment Scheme (BPS) is phased out over the coming years, with the reduction in payments set to follow this timeline:

• 2025 – 100% payment

• 2026 – 60%

• 2027 – 40%

• 2028 – 20%

• 2029 – 0%

Farmers entering the SFS will surrender any future BPS payments, with the new scheme taking its place. The SFS is administered by Rural Payments Wales (RPW) with support from organisations such as Natural Resources Wales (NRW) for delivery and monitoring. It offers Welsh farmers public funding for actions that promote sustainable food production, address climate change and enhance the environment.

How the Sustainable Farming Scheme works

Farm businesses entering the SFS can commit to actions from a list of 12 in order to qualify for funding. This is done through the Universal Layer which runs per calendar year (1st January to 31st December), with the application window now open as of Monday 2nd March, closing on Friday 15th May.

Further payments will also be available through the Optional and Collaborative Layers for farmers who wish to go further.

The Universal Layer

The Universal Layer contains Universal Actions (UAs), which generate a Universal Payment if met. The scheme was shaped following consultation with farmers and on-farm meetings with government ministers, resulting in a structure designed to reflect the diversity of farm businesses across Wales.

A key feature of the UAs is that they only need to be completed if relevant to your holding, recognising that different farms have different requirements and objectives.

Universal Actions

The actions included are:

• UA1 – Soil health

• UA2 – Integrated pest management (IPM)

• UA3 – Benchmarking

• UA4 – Continuous Professional Development (CPD)

• UA5 – Habitat maintenance

• UA6 – Temporary habitat creation on improved land

• UA7 – Designated site management plan

• UA8 – Hedgerow management

• UA9 – Woodland maintenance

• UA10 – Tree and hedgerow planting opportunity plan

• UA11 – Historic environment

• UA12 – Animal health and welfare

Optional Layer

The Optional Layer provides an opportunity for increased funding for farm businesses undertaking actions aimed at more targeted and specific outcomes. For 2026, actions are grouped into 14 ‘themes’ covering areas such as habitat management and biodiversity enhancement.

Collaborative Layer

The Collaborative Layer is designed to bring farm businesses, land managers and other organisations together in a coordinated way to deliver at landscape, catchment or national scale.

Eligibility for the scheme

The guidance set out states that any land claimed under the SFS must be eligible for the entire scheme year.

The criteria:

• Have at least three hectares of eligible agricultural land in Wales, registered with the RPW; or

• Demonstrate that you undertake more than 550 standard labour hours on agricultural or ancillary activities in the scheme year, and have a minimum of 0.10 hectares of eligible agricultural land

• Have management control of the land for at least 10 months of the calendar year (this must include 15th May 2026).

• Undertake agricultural or ancillary activities during the scheme year.

The SFS structure is also built on a set of requirements:

1. The SFS Regulatory Baseline – legal requirements that underpin the scheme and are based on domestic legislation, applying to all farmers in Wales

2. The Universal Code – a set of non-regulatory requirements that must be followed and which comprise four areas: soil protection, biodiversity and habitats, trees, and landscape features.

3. 10% of the eligible area must be managed as habitat – as set out in the Universal Code. This can include existing habitat such as hedgerows.

How to apply

As mentioned, the window to apply is now open, with the Single Application Form (SAF) available at RPW Online. Guidance for this is available here, the deadline for completion is Friday 15th May 2026.

Ongoing support from Frontier’s advisors

If you are unsure of the funding opportunities available, or how best to explore the scheme options, our team are on hand to help.

We understand that the SFS represents a new approach to agricultural support in Wales, and there is a significant amount of information to consider. Our advisors can help you assess the available actions and identify those best suited to your farm and wider business goals, helping you get the most from the agreement, minimise risk and deliver tangible outcomes.

More information on how we can support you to navigate funding is available on our website, or you can contact us by emailing info@frontierag.co.uk or calling 0800 227445.