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News

Sustainable Farming Scheme: NFFN Cymru calls for boost to rural budget

Wales
Farming budget
Hedgerows
Sustainable Farming Scheme
Trees

NFFN Cymru has responded to the Welsh Government's updates to the Sustainable Farming Scheme (SFS), including revisions to a contentious tree-planting target. We believe the changes have the potential to benefit both nature and agriculture, provided sufficient funding is allocated to support ambitious action across Wales.

NFFN Cymru has given a cautious welcome to the Welsh Government’s updates to the Sustainable Farming Scheme (SFS). We are broadly supportive of the changes announced by Deputy First Minister Huw Irranca-Davies on Monday (25 November)

However, the Welsh Government now urgently needs to increase its spending on rural affairs and farming, with greater investment essential to meeting environmental and climate obligations and to ensuring the SFS effectively supports both nature and agriculture.

We are cautiously supportive of the changes to the most contentious part of the SFS. The previous requirement for farms to maintain at least 10% tree cover has been replaced with a more flexible approach, requiring farms to plan for tree planting and hedgerow creation alongside a commitment to implement it. Individual farm targets will now be replaced with a scheme-wide one.

Without proper funding, ambitious plans - like those for agroforestry - risk staying on paper instead of becoming reality.

Rhys Evans

We have also welcomed the retention of a requirement for 10% of each farm to be managed as habitat. Additionally, we are pleased with other elements of the Universal layer of the SFS, including measures to enhance soil health, benchmarking, animal welfare and improved hedgerow management.

NFFN Cymru manager Rhys Evans said: “Overall, the changes to the SFS are broadly positive. We welcome the retention of the 10% habitat requirement, which has been a key priority for us. Habitats can include hay meadows, herbal leys, marshy grasslands, hedgerows, wood pasture and unimproved ffridd or hill land, all of which contribute towards food production in Wales and can help improve farm business resilience.

“Tree planting on farms should be guided by the principle of planting the right tree in the right place for the right reason. We had concerns that mandatory tree cover policies might lead to unintended outcomes, such as losses of biodiversity or food production. Therefore, we welcome the flexibility for farmers to work with advisors to draw up tree planting and hedgerow creation plans which suit them.

“However, it is crucial that the SFS is adequately funded to ensure its effectiveness. In particular, the Optional and Collaborative layers, which are the most ambitious and hold the greatest potential for benefiting nature, need sufficient investment. Payment rates must reflect the value of these measurements. Without proper funding, ambitious plans - like those for agroforestry - risk staying on paper instead of becoming reality.

“As farmers we are being asked to deliver numerous outcomes: food production, climate change mitigation, nature recovery, reducing flood risk, access and recreation opportunities, as well as being the cornerstone of rural communities, economies and the Welsh language. We are more than ready to deliver, but we need to be supported fairly to do so.” 

A recent report suggests that the Welsh Government needs to increase the rural affairs budget to around £600 million to help farmers address the nature and climate crises. In contrast, the most recent budget change was a reduction of £62 million, or around 13%.

NFFN Cymru is pleased that the SFS Universal layer is considerably more ambitious than the previous land-based Basic Payments Scheme (BPS). We are now urging the Welsh Government to set payment rates high enough to encourage widespread participation while ensuring the Optional and Collaborative layers of the SFS remain attractive for those ready to do more for nature on their farms.

We have also backed the decision, announced at the Royal Welsh Show in July, to include designated land as eligible for payments within the SFS Universal layer.