Sustainable Farming Scheme: final proposals published ahead of launch in 2026

The final description of the Sustainable Farming Scheme (SFS) was published on the 15th of July 2025 ahead of its introduction in January 2026.

Environmental organisations in Wales have cautiously welcomed the latest SFS proposals as a good start. Wales Environment Link (WEL) have observed in their response that while the SFS an improvement on the EU’s Common Agricultural Policy (CAP), there is room for improvement which should occur at pace.

Currently, 70% of the budget for the SFS is allocated to the Universal layer and legacy BPS payments (the latter is to be phased out). WEL have stated that they would like to see funding transition year-on-year from the Universal to the two other layers, the Optional and Collaborative, which are seen by environmental organisations and the Welsh Government as having the most potential for benefits to the environment.

In his written statement, Huw Irranca-Davies, Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs, wrote that, “[the Welsh Government] are committed to further shifting the balance of the budget to Optional and Collaborative Actions in subsequent years. We will also continue to develop our understanding of how actions such as protecting our environment contribute to social value and to apply this in the future for Optional and Collaborative Actions.”

The description of the SFS states that, “…the allocation of the budget across the Universal, Optional, and Collaborative Layers will require an annual review process to support decisions on the balance of the budget across these layers”.

Both WEL and farming unions would also like to see the overall budget for agriculture increase. WEL estimate in their Pathways to 2030 report that a spend of £519 million annually on sustainable land management in Wales is required to meet priorities for the natural environment and net zero targets. The Welsh Government have said in the Ministerial Statement accompanying the SFS proposals that they will maintain the budget of £238 million for 2026.

CIEEM will be glad to see a Sustainable Farming Scheme in place by 2026 and are pleased to see the Welsh Government commit to allocating more of the budget to the upper layers of the scheme in the coming years.

In the meantime, we are particularly concerned that — in order for the Universal layer to be successful — farmers should have access to advice that is professional, objective, and evidence-based, delivered by competent and well-trained advisers. This is especially the case for advice and training relating to biodiversity, such as on maintenance of 10% habitat on farmer’s land which is one of the requirements of the Universal layer.

CIEEM has developed a Farm Environment Adviser Competency Framework outlining 16 areas of expertise across three levels—Trainee, Proficient, Advanced. This framework is designed to set industry standards for advisers, ensure high-quality guidance, and structure training for new entrants as well as CPD for existing advisers.