What does the new subsidy mean for Welsh farmers?
What is the Scheme?
The Sustainable Farming Scheme is said to be The Welsh Government's way to support farmers, land management and sustainable food production from 2026 onwards.
It will pay farmers for actions resulting in environmental, animal welfare and social outcomes above the legal requirements.
To be eligible, farmers will be required to manage at least 10% of their farm as habitat.
Farmers will be required to carry out 'universal actions' for which they would receive the 'universal baseline payment'.
'Optional' and 'collaborative' actions can be done for additional payments.
Farmers can chose to join the scheme but must undertake all 'universal actions' and have sole control of the land to receive the money.
There are 12 'universal actions', which include soil health, habitat maintenance and tree and hedgerow planting opportunities.
Why is it controversial?
Last year thousands of farmers protested outside the Senedd as a result of the proposed Sustainable Farming Scheme.
The backlash is based on the fact farmers will have to meet strict environmental targets in return for government funding.
There are fears it won't work for all farmers due to complications around land ownership and rights to land.
The National Farmers Union in Wales says that the scheme must work for every farm in Wales. Aled Jones, President of NFU Cymru, says that agriculture is the bedrock for Wales' food and drinks sector.
"NFU Cymru has long been clear that the Sustainable Farming Scheme must provide at least the same level of stability to farm businesses, rural communities and the supply chain as the Basic Payment Scheme does currently.
"In March 2024, NFU Cymru placed 5,500 pairs of wellies on the steps of the Senedd, a deeply moving and poignant depiction of the potential job losses on farm forecast by an impact assessment of a previous version of the Sustainable Farming Scheme.
"It is imperative that the revised scheme and budget attached to the SFS, which is expected to be published this week, avoids such a shocking impact on one of Wales' iconic sectors.
The SFS must work for all farming sectors and areas of Wales and help ensure that Welsh farming can continue to underpin the £9.3 billion food and farming supply chain."
When will the Scheme come into play?
From 2026 you will have the choice to enter the Sustainable Farming Scheme or remain with the Basic Payment Scheme which will be phased out by 2029.
The current scheme that farmers receive funding from will be worth just 60% of its current value. That means that if farmers want to receive more money from the Welsh Government, they will have to sign up to the Sustainable Farming Scheme next year.
What the Welsh Government hope it will achieve?
" Our ambition is to see a thriving and confident agriculture sector in Wales, that is built around innovation and growth."
"Supports farmers in Wales to produce world class, high-quality, food whilst caring for the environment, tackling and adapting to climate change and building resilience for those who will work and care for this precious land in the years to come."
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