On Tuesday 2 December, Members of Senedd voted on three different statutory instruments (SIs) relating to the implementation of the Sustainable Farming Scheme (SFS), the phasing out of the Basic Payment Scheme (BPS) and the appeals process attached to the new scheme.
NFU Cymru President Aled Jones said “NFU Cymru has examined the three Statutory Instruments (SI) being voted upon in detail. Whilst there are elements of the SIs that we would have preferred to have seen drafted differently we believe that in the interests of providing security and stability to Welsh farming at this time it was important that the Senedd voted in favour of passing all three Statutory Instruments. It is important to note that if the SIs had not passed there would have been no certainty that the Basic Payment Scheme (BPS) budget (£238m), and the total agricultural budget (£340m), would have remained in place for 2026. This was made clear in the Senedd Chamber ahead of the vote and would have caused significant uncertainty to farming businesses across Wales.
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Still work to do to evolve scheme
“Whilst NFU Cymru believes that the framework of the Sustainable Farming Scheme is right, we are of the view that there is still work to do to evolve the scheme, the passing of the SIs does not in any way impinge on or prevent the further development and evolution of the SFS.
“NFU Cymru has set out the areas where we believe further focus is required, these have been shared with the Deputy First Minister and also with the Leaders and Rural Affairs spokespeople of all the parties in the Senedd.
“It is vital that the SFS provides economic stability to Welsh farming. We are clear that a properly resourced universal layer and social value payment must, therefore, continue to be at the heart of the SFS both now and in the future.
Ring-fenced multi-annual budget needed
“The current government and any future government must give an ongoing commitment to maintain, as a minimum, the current 70:30 budget split between the universal and optional/collaborative layers. Looking ahead, the next government must commit to providing a ring-fenced multi annual budget for the length of the next Senedd. This budget should be a minimum of £500m per annum to take account of inflation and to help meet our shared ambitions for food, climate, environment, communities and language.
Key asks
“We highlight the need for Welsh Government to urgently work with the farming industry to bring forward proposals under the optional layer of the SFS to support farm efficiency, productivity and increase profitability and the sustainability of farming businesses.
“The scheme requirement for 10% habitat also remains an area that we believe needs to be kept under review, both in terms of the conditions attached to the habitat classifications and through an expansion of the range of temporary habitat options available to all farming businesses.
“We remain extremely concerned about the ‘cliff edge’ transition with the BPS reducing to 60% of its current value in 2026, there will be very good reasons why many farmers will be unable to enter the SFS in 2026, we continue to believe that government should provide a more balanced transition from the BPS to the SFS.
“We will continue to do all we can to ensure that Welsh Government’s agricultural policy provides the stability needed for farming families so they can continue to provide high quality food, continue to deliver for our environment and underpin our rural communities, culture and Welsh language.”