Sustainable Farming Scheme
UPDATE

The Welsh Government has just published further details about the Sustainable Farming Scheme (SFS), set to launch on 1st January 2026. 

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From 2026, you'll have the choice to enter the new SFS or remain with the Basic Payment Scheme (BPS) — which will be phased out by 2029. Now’s the time to get informed and plan ahead.

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The SFS is made up of 3 layers:

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• Universal Layer – 12 core actions you must complete to enter the scheme. These include soil testing, animal welfare, habitat maintenance, hedgerow care, and more.

• Optional Layer – 14 flexible actions tailored to your farm’s goals. Pick and choose based on your land type, ambitions, and capacity.

• Collaborative Layer – Encourages groups of farmers to work together on larger landscape or water catchment-scale projects.

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Payment Rates for Year 1 (2026)

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Whole Farm Payment

• £70/ha for the first 70 hectares

• £2/ha for any land above that

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Social Value Payment

• £107/ha for all eligible land

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Habitat Maintenance

• £69/ha for land managed under UA5/UA6 to meet the 10% habitat target

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Woodland Maintenance

• £62/ha for woodland managed under UA9 (some tenant exclusions apply)

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 What You’ll Need to Do

• Declare all available and eligible land on the annual Single Application Form (SAF) by 15                May each year

• Complete a woodland & hedgerow opportunity plan in Year 1

• Manage at least 10% of your land as habitat — with flexible options to help you meet this requirement

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From next week, you’ll be able to calculate an indicative SFS Universal Payment for your farm.

 

Contact our rural grants team who are available to help you:

• Compare your SFS and BPS income

• Understand what actions apply to you

• Start preparing for the 2026 rollout

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➡️ Contact our Oswestry office today – 01691 659658 or email oswestry@dmpcuk.com