Welsh Farmers to Access Low-Interest Green Loans

The Sustainable Agriculture Loan Scheme (SALS) will offer incentivised loans at a fixed 3% interest rate, repayable over up to 15 years, to help small and medium-sized farms invest in energy efficiency, waste management and productivity improvements. Up to £5 million will be available during the 2026/27 financial year, with the potential to extend the scheme depending on demand. 

Farms will be able to borrow between £25,000 and £1 million per project. A six-month repayment holiday at the start of the loan gives businesses time to see the benefits of their investment before repayments begin. Seasonal payment options are also being considered. 

SALS makes a clear policy choice: public finance should be used as a repayable, targeted tool to drive sustainable farming practices — complementing existing Welsh Government grants. 

Deputy First Minister with responsibility for Climate Change and Rural Affairs, Huw Irranca-Davies, said:

“I’m pleased that we’re able to work with the Development Bank of Wales on this new scheme which will be another way of supporting Welsh farming businesses to modernise and remain financially sustainable.”

Giles Thorley is Chief Executive of the Development Bank of Wales. He said

“Supporting farm businesses with patient and flexible funding packages is critical at a time of much transition in the sector. We look forward to working closely with Welsh farmers to support new projects enabling them to both ‘invest to save’ and enhance their future sustainable farming delivery.”

The scheme will be aligned to the Wales's Sustainable Land Management duties as well as working in a complementary way with the roll out of the Sustainable Farming Scheme. 

The pilot will initially run for 12 months.

Further information, and the opportunity to express your interest, is available from the Development Bank of Wales.