94% of farmers in Wales receive payments today.

Over 15,300 Welsh farm businesses have received payments worth £66.88m, in addition to £160.52m paid as BPS advance payments since 14 October meaning that payments totalling £227.40m have now been made.

The Deputy First Minister and Cabinet Secretary for Rural Affairs, Huw Irranca-Davies announced in May that the Basic Payment Scheme (BPS) will continue for 2025 as part of the SFS Preparatory Phase.

Following the publication of the Welsh Government's Draft Budget for 2025 – 2026 this week, the Deputy First Minister has also confirmed today a total budget of £238 million to provide direct payments to farmers in 2025 at the same level provided in 2024.

BPS 2025 is expected to be the final year of full BPS payments, with those farmers choosing to remain in BPS receiving a reduced payment per year during the SFS transition period starting in 2026.

The Deputy First Minister, said: “We are committed to continued financial support for farmers as they are at the heart of communities right across Wales, and they play a crucial role in our economy and food production. As stewards of our land, they play a key role in protecting and restoring nature and tackling the climate emergency. 

“We live in uncertain and challenging times; however, you can be certain about this government’s steadfast commitment to supporting Welsh farmers to sustainably produce quality food, demonstrated today in the maintenance of the BPS budget, despite considerable financial pressures on other areas.   

“I recently published an updated SFS Outline demonstrating the significant changes we have made to the proposed Scheme thanks to consultation feedback from the industry and an intensive period of work with the Ministerial Roundtable and other stakeholders. The changes address the needs of Welsh farmers, while supporting the ongoing sustainable production of food, as well as climate change and nature commitments. We will continue to listen to, and work with stakeholders as we progress the extra detail needed before we make any final decisions on the SFS next year.  

“We will continue to support the sector in a managed transition away from BPS from next year onwards.”

Several SFS preparatory schemes have also previously been announced, including Habitat Wales Scheme, Habitat Wales Commons, Organic Support Payment, Farming Connect, a new Integrated Natural Resources Scheme. New application windows have or will shortly open for our successful Growing for the Environment, Small Grants Environment, Small Grants Efficiency, Small Grants Horticulture Start up and the newly merged Agriculture Diversification and Horticulture Scheme, with more to come in the New Year.

In addition, the first ever Multi-Annual Support Plan (“MASP”) was published today as required by the Agriculture (Wales) Act 2023. This is the first of many reporting requirements which will be publishing under the Act.

The MASP sets out the Welsh Government’s plan and suite of activity for future support, providing the agricultural sector with assurance and transparency and enabling the sector and its businesses to plan in five yearly cycles.

The plan describes each scheme that is intended to be in operation or expected to become operational during this period and provides a description of the support each scheme will provide.