Welsh farmers are set to receive over £1 billion in funding across three years as the government has announced its budget for the new Sustainable Farming Scheme (SFS).

The Welsh government outlined that the scheme will provide £340 million each year until March 2030, aiming to give farmers more certainty through a multi-annual budget.

The funding package includes £238 million per year for the universal layer of the scheme and £102 million annually for the optional and collaborative layers.

The scheme's new payment structure replaces the year-by-year funding model, which was seen within the government's old Basic Payment Scheme.

Cabinet Minister for Rural Resilience and Sustainability, Llyr Gruyffd noted that farmers had made it clear to him that they needed "certainty and stability" from the scheme.

"We know how hard it is to plan and make business decisions without knowing what funding is coming.

"I am committed to working to ensure farming in Wales thrives for generations to come," the minister commented.

Alongside the funding announcement, the Welsh government confirmed plans to reduce bureaucracy within the new SFS.

It said that the Animal Health Improvement Cycle (AHIC) requirements in the universal layer will be simplified by aligning them with farm assurance schemes.

This will allow participating farmers to complete a single form from 2027 that satisfies both assurance and SFS requirements during one veterinary visit.

The government also outlined that further optional actions and a new application window for the Integrated Natural Resources Scheme will open later this year.

Farming unions

Both the National Farmers' Union (NFU) Cymru and the Farmers' Union of Wales (FUW) welcomed the scheme's announcement, describing the move as a significant step towards providing financial certainty for Welsh farmers.

NFU Cymru president Abi Reader stated that the three-year funding commitment would provide "much-needed stability and certainty" during a period of market volatility.

Reader also welcomed the decision to maintain the 70:30 funding split between the universal layer and the optional and collaborative layers.

She said: "It is the universal layer – and in particular the social value payment within this layer - that provides stability to farm businesses.

"This move to a ringfenced multi-annual system of farm support, coupled with a 70:30 funding split, will underpin the financial resilience of family farms and help them ride out these challenges, whilst at the same time helping deliver on our ambition for the sustainable growth of the sector."

FUW president Ian Rickman recognised that recent years within the agricultural sector had brought "significant financial uncertainty" for Welsh farmers, making it increasingly difficult for them to plan ahead.

However, Rickman felt that the committed funding until 2030 will be "a welcomed relief for the family farms of Wales."

He added that while the announcement represents "a major milestone" for agricultural support, FUW will continue to campaign for increases in the baseline funding available through SFS in order to ensure that payment rates remain appropriate for active farmers.