After months of discussions and negotiations, the Welsh Government has finalised the details of the Sustainable Farming Scheme (SFS), a key public subsidy program for farmers in Wales. While the scheme marks progress towards a more sustainable future for Welsh farming, the Wildlife Trusts Wales expresses concerns that it fails to adequately address the urgent climate and nature crisis.

Mixed reaction to the Universal Tier:

We welcome the move towards a whole-farm approach with the goal of making Welsh farming more sustainable. However, the details released today only cover the Universal Tier, which appears to maintain the status quo. It falls short of addressing the pressing nature and climate challenges we face today.

The need for immediate action:

Welsh farming is currently unsustainable—both economically and environmentally. Over the past decade, the number of farms has decreased, resulting in 9,000 job losses. Farming continues to be the primary driver of biodiversity loss and greenhouse gas emissions in Wales. The SFS should be a vehicle for change, enabling sustainable food production and transitioning to sustainable land management. Financial support and recognition through the Social Value Payments for carbon storage, air quality, and recreation access are a step in the right direction.

Welcoming BPS tapering, but more is needed:

We welcome the tapering of the Basic Payment Scheme (BPS), which has offered poor value for money. These tapered funds will now go to the proposed Options and Collaborative tiers and they have the potential to support nature friendly farming, but details of these tiers are still lacking.

Collaboration and transparency:

We commend the Welsh Government for its transparency and commitment to engaging all stakeholders throughout the SFS review process, including the Roundtable and other forums over the past year.

The role of farming in nature's recovery

Wales is one of the most nature-depleted countries in the world, with one in six species now at risk of extinction. Farming, which covers over 80% of Welsh land, is a primary driver of this decline but also where the greatest potential for recovery lies. To reverse this trend, farming must change whilst supporting sustainable food production and viable livelihoods. The SFS has the potential for this if sufficient budget is secured for the Options and Collaborative tiers. The SFS should prioritise farmers who are already managing land for nature and incentivise those transitioning to more sustainable practices.

Concerns over diluted proposals

Unfortunately, proposals to ensure nature’s recovery through the SFS have been significantly weakened since their introduction last year. Key measures to restore nature on farms have been watered down, including:

• The removal of mandatory pond requirements (at least two ponds per farm) and action to restore peatland.
• The removal of the tree planting target of 10% to only needed a tree planting plan, but we welcome the overall scheme target and review on progress in 2028.
• No firm commitment to reducing pesticide use or nutrient runoff into rivers, despite Welsh Government pledges to reduce these by at least 50% through the UN Global Biodiversity Framework.

These changes contradict Wales' commitment to the 30x30 initiative, which aims to effectively manage 30% of land, rivers, and seas by 2030. The current SFS framework risks missing this critical opportunity to drive nature recovery at scale.

Rachel Sharp, Director of Wildlife Trusts Wales, said:

“While we welcome elements of the Sustainable Farming Scheme, we remain deeply concerned that the final version will not adequately address the climate and nature crises. Welsh farming is in crisis—fewer farms, fewer jobs, and increasing environmental damage. We need to see an increased budget for the SFS, specifically for the Options and Collaborative tiers, to help farmers transition to nature-friendly farming practices. Only farmers can restore nature and reduce the devastating impacts of climate change, including flooding and droughts.”

The Future of Farming in Wales

To ensure the future of farming in Wales is resilient, we must support small family farms that are struggling and empower them to adopt sustainable practices. While large, profitable farms may resist regulation and changes to their practices, small farms are the backbone of rural communities and can lead the way in nature-friendly farming. 

Farming in Wales must change—not just for the sake of nature, but for the health of the farming industry itself. Climate change is already costing millions through flooding and drought, and future trade agreements pose further risks. But brave, innovative farmers across Wales are already demonstrating that Nature Friendly Farming is the future. It’s time for us to support this transition.

Wildlife Trusts Wales calls on the Welsh Government to ensure that the Options and Collaborative tiers of the SFS create a step forward for sustainable farming, and a meaningful shift toward nature recovery and climate resilience. A stronger, more comprehensive scheme will protect Wales' nature and ensure a viable future for farmers.