Wales Sustainable Farm Scheme (SFS)

Starting January 2026 the application window will open in March and close on 15th May, in line with the current SAF period.  From 2026 you will have the choice to enter the SFS which will be the main support available to farmers or claim the Basic Payment Scheme (BPS). BPS payments will be reduced by 40% in 2026 and phased out by 2029.

The much talked about reports of woodland/tree cover requirement has not been proposed, however within the scheme rules there is a requirement to have 10% habitat – this will be based on the amount of existing semi natural habitat.  Farms with insufficient habitat must create additional temporary habitat to achieve 10%. 

You will also need to meet the SFS Regulatory Baseline which is the same as previous cross compliance.   

There is an additional action for maize – maize cannot be grown on slopes of 12 degrees or more and if grown on fields liable to flooding must be under sown.

The SFS is a 3-tier system, the tiers will be:

  1. Universal layer and 12 Universal Actions – you will be required to meet all the universal actions relevant to your farm.
  2. Optional layer for additional income.
  3. Collaborative layer for group projects.

SFS consists of 3 payments:

  1. Whole Farm Payment – £70 per hectare for the first 70 hectares of eligible land, and then £2 per hectare for all remaining eligible land.
  2. Habitat Maintenance Payment – £69 per hectare for all habitat maintained as part of UA5: Habitat maintenance or for habitat created under UA6: Temporary habitat creation on improved land to meet the Scheme Requirement for 10% habitat on each farm.
  3. Woodland Maintenance Payment – £62 per hectare for all woodland maintained as part of UA9: Woodland maintenance

There is also a Stability Payment of £1,000 for farms <100ha if you apply for the SFS in 2026

A Social Value Payment is proposed – £107 per hectare for all eligible land – there are few details of this

All of the above is subject to capping – the capping ceiling for universal payments is £25,000

UA2 Integrated Pest Management (IPM): Complete an annual assessment of Plant Protection Products used, and alternative methods to reduce chemical use.  Can use NFU voluntary initiative plan template.

UA3 Benchmarking: Complete an annual measuring and monitoring assessment to help identify savings or improvements. Farming Connect have an online tool.

UA4 Continuous Professional Development (CPD): 6  hours, can be discussion groups, accredited training, e-learning.  Improving health and safety on farms is a compulsory module in first year.

UA5 Habitat maintenance: Maintain the semi-natural, or newly created habitats on your farm to benefit grazing livestock and wildlife. Need 10% of this habitat or you must create habitat.  If you have more than 10% there is a supplementary habitat payment within the Universal Payment for each hectare of habitat. Farms with more semi-natural habitat will therefore receive more Universal Payment under the habitat payment for management of this land.  Recording habitat is to be done through SAF 2026.

There are 12 eligible habitats- management prescriptions are detailed for each:

  1. coastal saltmarsh
  2. coastal sand dune and shingle beach
    a) sand dune
    b) sand dune and shingle beach
  3. lowland and coastal heath
  4. enclosed wetland and marshy grassland
    a) enclosed wetland: lowland bogs, fens and flush / mire
    b) marshy grassland
  5. enclosed semi-natural dry grassland:
    a) managed as grazed pasture
    b) managed as hay meadow
  6. upland open habitats
  7. traditional orchards
  8. dense bracken
  9. scrub
  10. wood pasture
  11. permanent wildlife ponds
  12. newly created habitat areas on improved land
    a) new streamside corridors
    b) newly restored peat
    c) no input grassland from previous schemes
    d) any other improved or previously afforested land which is under habitat creation management

The total area of the following areas will be used to determine the 10%:

  • All existing semi natural habitat as defined under UA5 Habitat maintenance.
  • Established broadleaved woodland.
  • Hedges in good condition that provide significant value for biodiversity, where:
  • the hedge is at least 3m wide and 2 tall (or 2m wide and 3m tall), and where there is a minimum of 3m between double fences (or minimum 2m between double fences where established through previous Glastir support) and where gaps total no more than 5% of the length of hedgerow).
  • Habitats established since 2022 such as streamside corridors, ponds, woodland and hedges. 

If you have insufficient existing habitat, you must create additional temporary habitat to achieve the 10%. See UA6: Temporary habitat creation on improved land 

UA6 Temporary habitat creation on improved land: Create additional temporary habitat to meet the Scheme Requirement for 10% habitat on each farm.   Temporary habitat is:

  • fallow crop margins
  • unfertilised, unsprayed and unharvested cereal and linseed headlands
  • fixed rough grass margins on arable land
  • rotational rough grass margins on arable land
  • unsprayed spring sown cereal and protein crop mix with stubbles retained
  • retain cereal winter stubbles
  • wildlife cover crop on improved land
  • unsprayed, unfertilized and uncultivated buffer adjacent to existing habitat. (including open water) on improved grassland
  • mixed leys on improved land (also referred to as multi-species or herbal leys)
  • late cut improved grasslands
  • improved grassland allowed to set seed

Management prescriptions are detailed for each in the handbook

UA7 Designated Site Management Plan: Improve the management of Designated Sites (e.g. SSSIs), by agreeing a Management Plan with NRW, and then accessing further Optional funding. NRW will contact the applicant.

UA8 Hedgerow management: Manage bigger and denser hedgerows to provide shelter for your livestock, crops and wildlife.  5cm incremental cutting until hedges are 3m by 2m, 1 tree per 50m, cut on two year rotation, cannot cut back unless they are larger than 3m by 2m.  Fences to be 3m apart.

UA9 Woodland maintenance: Maintain existing woodlands to increase the benefits for livestock, nature and business diversification.* must be >0.1ha, woodland payment available.

Can only fell between 1 September and 28 February, and no more than 5m3 per quarter, retaining a certain amount of deadwood and supporting appropriate natural regeneration. You will be asked to protect native ground flora, trees and their roots from direct or indirect damage due to cultivation, compaction, use of machinery or use of agrochemicals, including fertilisers.

You will need to monitor grazing and keep livestock impact levels low. Woodland grazing in the spring and early summer and supplementary feeding of livestock should be avoided if possible.

UA10 Tree and Hedgerow Planting Opportunity Plan: Complete an opportunity plan for additional trees and hedgerows to identify where they can benefit your farm. We are asking you to plant at least 0.1 ha of trees by the end of the 2028 scheme year (or have arrangements by then to plant by the end of March 2029), with funding available in the Optional Layer.

UA11 Historic environment: Protect and enhance important heritage features to conserve our distinctive cultural character.*  Applies to:

  • scheduled monuments
  • historic Environment Features – individual features and larger archaeologically sensitive areas.
  • registered parks and gardens.
  • traditional farm buildings. Please note that this UA does not prevent you adapting or converting farm buildings, however it is your responsibility to ensure you have all consents and licences from the relevant authorities.

UA12 Animal Health and Welfare: Work with your vet to support continuous improvement in health and welfare of your livestock.

* If these actions do not apply to your farm, in any given year, you do not have to complete them. This will not affect your Universal Payment

Optional Actions:

If any claimants wish to go over and above the mandatory level, they can, on the basis they meet the requirements they will then receive a further layer of payment.

  1. Improved soil health & multispecies crop cover 

Similar to our existing Small Grants Environment and Efficiency schemes, and the Growing for the Environment scheme we intend to provide support including:

  • establishment of mixed leys, cover crops, the undersowing of maize and unsprayed crops / margins
  • capital investment for equipment / infrastructure such as:
    • gateway maintenance, cross drains, electric fencing and water troughs (to minimise poaching)
    • subsoilers, direct drills, and minimum tillage cultivators to reduce soil disturbance
  • Improve your efficiency and the sustainability of the farm 

The scope of this action will develop over time to incorporate actions to support all sectors. The initial offer focuses on improvements and efficiencies in livestock production through:

  • sustainably reducing the age at slaughter of prime beef animals
  • beef sire registration
  • implementing graze and rest patterns (beef, sheep or dairy)
  • Enhanced habitat management: Improve the condition and resilience of existing habitats with site specific action to benefit you and the wildlife on your farm

Examples of actions which may be supported include:

  • control of bracken or Invasive Non-Native Species (INNS)
  • management of peatlands to help store and regulate water flow and reduce the risk and impact of wildfires
  • targeted grazing patterns to enhance swards
  • reversion of an existing habitat type to a more valuable habitat type, such as reverting upland acid grassland to heathland
  • a sequence of activities such as purple-moor grass (Molinia) control followed by cattle grazing, followed by seed introduction to restore a more diverse heathland or marshy grassland
  • Create new habitat areas on your farm to benefit wildlife and connect existing habitat areas

Must be in addition to UA6 includes permanent habitats and temporary habitats.                                                                                                                                                            

Support for permanent habitat creation could include:

  • reversion of improved grasslands to species rich grasslands
  • creation of orchards (traditional standard fruit trees varieties only)
  • creation of streamside corridors

Temporary habitats are same as those for the UA6

  • Implementation of Designated Site Schedule of Works

To implement the agreed Schedule of Works set out in your Designated Site Management Plan

  • Bring existing farm woodlands into better economic and environmental condition

This support contains two elements:

  • funding to work with a registered woodland planner to develop a Woodland Management Plan. Any relevant permits, permissions and surveys will need to be in place before management works are carried out. The Woodland Management Plan will be valid for ten years with a review of progress at the five-year stage
  • woodland management grants for a range of items recommended in the Woodland Management Plan such as fencing, Invasive Non-Native Species (INNS) control, thinning, tracks, access, and biodiversity related activities
  • Create farm woodland and agroforestry to benefit livestock, nature and a future income source

To be delivered through 3 schemes:

The Small Grants Woodland Creation Scheme is designed for straightforward applications of up to two hectares on land which is agriculturally improved or of low environmental sensitivity. To increase flexibility for you, the updated scheme includes:

  • reduced minimum planting block size from 0.1ha to 0.01ha
  • a new ‘fruit and nut’ mix woodland category along with revised species tables to offer greater flexibility and choice
  • a payment for you to obtain technical advice

The Woodland Creation Planning Scheme – funding for the development of new Woodland Creation Plans for planting over 2ha, and areas not suitable for the Small Grants Woodland Creation scheme.

The Woodland Creation Grant funds planting over 0.25 ha included on an approved Woodland Creation Plan. To increase flexibility for you, the updated scheme includes:

  • reducing minimum block size for creating new woodland from 0.1ha to 0.01ha (minimum agreement size remains 0.25ha)
  • introducing a new ‘fruit and nut’ mix woodland category
  • new grants from 2026 for water gates, pipes and troughs to support planting by streams and rivers
  • replacing the current agroforestry option with:
  • a lowland option (available below the upper limit of enclosure) including 50 trees / ha, with a minimum distance of 15m between trees
  • an upland option including 80 trees / ha with a minimum distance of 8 m between trees
  • both options include an increased maintenance period from five to 12 years
  • Create and restore hedgerows to benefit livestock and crops, nature, and landscapes

We will support you to create and restore hedges by providing capital funding including, but not limited to:

  • planting new hedgerows (20 metres or longer)
  • promote new basal growth (rejuvenation) of existing hedgerows by laying (pleaching) where the hedge is tall, with multiple thin stems, or coppicing
  • restore existing hedgerows by rejuvenation and re-stocking with new whips where the existing stems are sparse
  • fencing and gates to protect new or restored hedgerows
  • water troughs, if needed, where new or restored hedgerows prevent livestock access to drinking water
  • Improved public access to the countryside 
  • Replace stiles with gates
  • Information boards
  • Seats/benches
  •  
  • Advanced Continuous Professional Development (CPD)

To be delivered by farming connect courses

  1. Improve water quality by reducing pollutants reaching watercourses and manage water resources to reduce impacts of drought and flood

This could include:

  • farm infrastructure improvements for clean water separation such as roofing, rainwater goods, water harvesting and filtration equipment
  • infrastructure investments to enhance nutrient management such as slurry and manure stores, slurry handling systems, dirty water tanks
  • precision nutrient and pesticide application equipment – such as GPS for precision farming, slurry injection systems or dribble bars
  • equipment to aid soil management to enhance water quality such as subsoilers, direct drills, and minimum tillage cultivators to reduce soil disturbance
  • establishing multi-species leys in combination with minimum tillage techniques
  • planting trees or hedgerows to intercept overland water flow and pollutants before they reach watercourses, including planting in riparian strips
  1. Improved air quality and lowering ammonia emissions

This could include;

  • capital funding for infrastructure improvements such as roofing over existing yards and slurry stores
  • capital funding infrastructure investments to enhance nutrient management including slurry and manure stores, slurry store covers, slurry handling equipment and scraping systems
  • funding precision nutrient and pesticide application equipment such as GPS for precision farming, slurry injection systems or dribble bars
  • funding equipment to aid soil management to improve air quality e.g. subsoilers, direct drills, and minimum tillage cultivators to reduce soil disturbance, and establishing multi-species leys
  • planting trees around slurry stores or livestock housing to intercept airborne pollutants
  • Organic Farming

Support for organic farming

  1. Enhanced biosecurity

Capital grants to help biosecurity

Wales Sustainable Farm Scheme (SFS)

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