£14 million available to farmers for further SFS Preparatory Phase schemes

£14 miliwn i ffermwyr ar gyfer rhagor o gynlluniau Cyfnod Paratoi'r SFS

The Deputy First Minister with responsibility for Rural Affairs, Huw Irranca-Davies, has, today [Monday 4 November], announced that application windows for further SFS preparatory phase schemes are now open.

In making the announcement on Preparatory Phase Schemes in the summer, the Deputy First Minister committed to further schemes, subject to budget availability. The five schemes will provide an investment of £14m for the agriculture and horticulture sectors during 2025. Three of the Schemes are now open with another two opening in 2025.

These schemes will enable farmers to encourage greater protection and enhancement for the environment and will also provide stability for farmers and growers to continue the sustainable production of food.

The five schemes will; Support the growing of agricultural crops which provide positive environmental benefits; Encourage small-scale investment in on-farm environmental improvements; Assist Welsh farmers to improve the technical, financial and environmental performance of their farm businesses; ’Seed fund’ the establishment of new horticultural enterprises; and support the development or establishment of agricultural diversification or horticultural enterprises on Welsh farms.

Deputy First Minister, said: “This funding is intended to give reassurance to farmers and growers that support will continue to be available in the lead up to 2026.

“We intend to help, guide and support eligible Welsh farmers and growers as we finalise and move towards the SFS.

“We will continue to listen to the sector and work in partnership. Together, we can create a future where our farmers and growers produce the very best Welsh food to the highest standards, while safeguarding our precious environment to help tackle the climate and nature emergencies.

“I’d encourage all farmers and growers to see how the funding available through the preparatory schemes can help provide stability and resilience to their businesses as we move towards the introduction of the SFS in 2026.

“We have been working with the Ministerial Roundtable at pace to develop a revised outline of the Sustainable Farming Scheme before it is subject to further analysis and modelling. Further announcements on progress will be made soon.”

Further information on the schemes and applications can be found here: Rural grants and payments | Sub-topic | GOV.WALES. The application window opening and closing dates can be found here: Rural schemes: application dates | GOV.WALES.

Notes to editors

Scheme Name	Aims and outcomes
Growing for the Environment.	Aim: Support the growing of agricultural crops which provide positive environmental benefits. e.g. winter cover crops, protein crops, unsprayed spring cereals and mixed leys. Outcomes: Enhances on-farm biodiversity, reduce bought-in feed costs and reduce risk of soil erosion.
Small Grants – Environment.	Aim: Encourage small-scale investment in on-farm environmental improvements to benefit water, air and soil quality, enhance carbon stocks and provide better provision for our landscapes and native biodiversity through hedgerow restoration and creation, small scale woodland and tree planting, along with various supporting capital works. Outcomes: Enhances on-farm biodiversity, tree planting and hedgerow management. Reducing flood risks and enhance carbon stocks.
Small Grants – Efficiency.	Aim: Assist Welsh farmers to improve the technical, financial and environmental performance of their farm businesses through investment in new equipment and technology. E.g. livestock handling, weighing equipment, precision application, management and monitoring equipment. Outcomes: Improved facilities, equipment and technology to enable farms to enhance their business performance, with the resultant financial and environmental improvements.
Small Grants – Horticulture Start Up.	Aim: To ‘seed fund’ the establishment of new horticultural enterprises, either as a new diversification enterprise on farms or as stand-alone businesses. Outcomes: To develop the horticultural sector in Wales, create a diversified income stream for Welsh farm businesses and establish new rural enterprises.
Agricultural Diversification and Horticulture scheme.	Aim: Support the development or establishment of agricultural diversification or horticultural enterprises on Welsh farms. This includes new or alternative livestock or crop enterprises, as well as adding value to agricultural waste or food products. The scheme also supports tree nurseries and investments to add value to farm produced timber. Outcomes: Investments to enhance the sustainability of the horticultural sector in Wales, create a diversified income stream for Welsh farm businesses and establish new rural enterprises.

All of the above schemes are continuations of the equivalent Rural Investment Schemes offered in 2024/25, with the exception of the Agricultural Diversification and Horticulture scheme, which is a merger of the previous Agricultural Diversification Scheme and the Horticultural Development Scheme.

The schemes highlighted within this advice are designed to deliver Sustainable Land Management (SLM) activity in line with the objectives stipulated in the Agriculture Act (Wales) 2023, below.

To produce food and other goods in a sustainable manner
To mitigate and adapt to climate change
To maintain and enhance the resilience of ecosystems and the benefits they provide; and
To conserve and enhance the countryside and cultural resources and promote public access to and engagement with them, and to sustain the Welsh language and promote and facilitate its use.