Welsh farmers are set to benefit from more than £1 billion in funding over the current Senedd term, in a move designed to bring much-needed certainty and stability to the agricultural sector.
Announced by Cabinet Minister for Rural Resilience and Sustainability, Llyr Gruffydd, at the Royal Welsh Show, the multi-year commitment represents a significant departure from the previous annual funding model – long criticised for limiting long-term planning and investment across rural businesses.
Multi-year funding to drive stability and investment
Under the new framework, the Welsh Government will provide £340 million annually for three years, running through to March 2030. This includes:
- £238 million per year allocated to the Universal layer
- £102 million per year for Optional and Collaborative layers
The move delivers on a commitment made within the Plaid Cymru Government’s first 100 days, aimed at introducing a multi-annual budget for the Sustainable Farming Scheme (SFS). For the sector, the change is expected to support more strategic decision-making, particularly around environmental sustainability, land management and business growth.
The Minister said:
“Giving farmers only 12 months' line of sight to funding is not sufficient. We know how hard it is to plan and make business decisions without knowing what funding is coming. Farmers told us loud and clear they need certainty and stability, and that is exactly what we are delivering.
“The family farm sits at the heart of rural Wales, its economy and its communities. I am committed to working to ensure farming in Wales thrives for generations to come.
“My message to farmers from day one has been, you have a Minister on your side. Someone that's in tune with the agricultural sector, who knows that the family farm is the foundation of our rural economy and our rural communities, and who will work every day to make sure farming in Wales thrives for generations to come.”
Cutting red tape for farmers
Alongside the funding pledge, the Welsh Government has also outlined early action to reduce administrative burdens on farmers, an issue raised during an independent review into bureaucracy affecting family farms, led by John Davies.
A key reform focuses on simplifying the Animal Health Improvement Cycle, part of the Universal layer within the SFS.
The new approach will:
- Align requirements between farm assurance schemes and SFS compliance
- Reduce duplication by enabling a single annual form
- Deliver dual outcomes – farm assurance and scheme compliance – from one veterinary visit
From 2027, farmers participating in aligned assurance schemes will benefit from a streamlined compliance process, helping to save time and improve efficiency.
Next steps for Sustainable Farming Scheme rollout
The Minister also confirmed that some Optional Actions under the scheme will be rolled out later than initially planned. In addition, a new application window for the Integrated Natural Resources Scheme, which is central to the Collaborative layer, will open later this year.
These developments underline a broader shift towards a more integrated and collaborative model of agricultural support, designed to deliver environmental, economic and community outcomes across rural Wales.
Image credit: iStock
