SFS Optional: Organic Conversion: general guidance

Who is this guidance for

This guidance is for customers who have claimed for the Sustainable Farming Scheme (SFS) Universal Layer. 

What is this grant

SFS Optional: Organic Conversion is an area-based grant designed to help farmers convert eligible land from conventional to organic production. The conversion payments are made during the first two years, but successful applicants must maintain organic certification for a five-year grant award period. 

Who can apply

You may be eligible if:

• you have submitted an SFS Universal Layer claim on the 2026 Single Application Form (SAF)
• you have management control of the land for the full five-year grant award period

What land is eligible

• whole field parcels only
• land must begin organic conversion on 1 January 2027
• you do not need to include all land on your holding
• sole-grazed common land may be eligible
• previously organic land which has reverted to conventional management may be eligible under certain circumstances

What land is not eligible

• land already certified organic
• land already in conversion
• part field parcels
• common land with multiple graziers
• land previously supported for organic conversion by the same business

Payment rates

Additional certification payment

A contribution of £500 per year for the two-year conversion period is available towards Organic Control Body (OCB) certification costs for businesses converting to organic status for the first time. 

How are applications selected

• applications are competitively scored
• scores are based on how well the proposed conversion contributes to environmental objectives
• Geographical Information System (GIS) target objective layers are used to assess environmental benefits
• Applicants who have claimed the SFS Universal Layer receive additional prioritisation. 

What happens if I am successful

You will receive a Grant Award Letter (GAL).

The grant:

• starts on 1 January 2027
• ends on 31 December 2031
• requires organic certification to be maintained throughout the 5 years
• GAL must be accepted within 21 calendar days of the offer

What must I do

During years 1 and 2

• convert the approved land to organic production
• submit required certification evidence
• submit annual SAF claims
• meet any specific requirements for payment rates 1 and 4 if applicable, including the submission of supporting documents

During years 3 to 5

Although no payments are available, you must:

• continue to maintain organic certification
• continue to submit an annual SAF 
• continue meeting grant conditions
• continue providing certification evidence by 31 December annually

Key dates at a glance

This guidance is for customers who have claimed for the SFS Universal Layer.

The SFS is a whole farm scheme. It includes a Universal Layer, containing a set of Universal Actions (UAs) which generate a Universal Payment.

Additional SFS payments are available in the Optional Layer if you want to go above and beyond the Universal Layer.

The Optional Layer consists of different ‘categories’, each of which contains a series of individual items or actions to choose from.    

The Organic Farming category is designed to support farmers to convert to an organic system and to support farmers to maintain organic certification. 

These guidance notes explain the SFS Optional: Organic Conversion support available under the Organic Farming category. 

Please read this guidance document carefully. If you want to apply, please see Section E: The application, selection and grant award offer process and the 'Using RPW Online to apply' guidance.

The SFS Optional: Organic Conversion is an area-based grant available to those who wish to convert from conventional to organic production. By supporting you during the two-year conversion period, it aims to deliver positive environmental and sustainable land management benefits. 

The SFS Optional: Organic Conversion grant award is for a period of five years.  The funding is paid for the first two years, but you must maintain organic certification for the full five years of the award.

Once your land is fully certified as organic after the initial two years of the grant award, you may apply, via your SAF, for the SFS Optional: Organic Farming – Support to receive a payment per hectare to maintain full organic certification.

Please read this SFS Optional: Organic Conversion guidance document before submitting an application.

The application window will open on 29 July 2026 and close on 9 September 2026.

Any changes will be publicised via our website, GWLAD online and, where necessary, we will contact you directly.

We (the Welsh Government) want to work with businesses and organisations who are proud of their reputation, what they deliver and their conduct. The following link will direct you to guidance which is designed to highlight and clarify the types of behaviours, cultures and values the Welsh Government expects to see ‘lived out’ by its grant recipients. 

Welsh Government expectations of grant recipients. 

You will be considered eligible to apply if you have submitted an SFS Universal Layer claim on the 2026 SAF. 

Applications will only be considered once eligibility has been confirmed.

Eligible land and crop codes

Eligible land

You can only apply for whole field parcels, that have not started organic conversion. Land parcels must start organic conversion on 1 January 2027. 

You do not have to include all land on your holding in your application for SFS Optional: Organic Conversion. 

You must be able to guarantee continuous management control for the five-year grant award period, starting 1 January 2027.

You will have management control if you are; 

• the owner occupier of the land 
• a tenant who has ‘exclusive occupation’ under either the Agricultural Tenancies Act 1995 with a Farm Business Tenancy, or a full Agricultural Holdings Act 1986 tenancy 
• a tenant with an unwritten tenancy arrangement with the same level of control as the above 
• you have allowed a licensee on to your land under a license arrangement that is specifically for grazing, cropping or taking hay/silage over a specified and limited period of time within the year, but you have retained management control 

Common Land used for grazing and where you are the sole registered grazier can be considered. These parcels must be registered in your name on Rural Payments Wales’ Land Parcel Identification System (LPIS). 

Land previously certified organic 

If you are the new owner of land which has previously been certified as organic, but is now farmed conventionally, you may be eligible to re-convert to organic production using SFS Optional: Organic Conversion support.

Eligible crop codes 

Where a field parcel has been declared on you 2026 SAF, the crop code declared will be used to determine the eligibility for SFS Optional: Organic Conversion.

If you are applying for field parcels not declared on your 2026 SAF, you will be required to submit the crop codes along with any documentary evidence such as cropping records, receipts, invoices, etc. with your application. 

Details of all eligible crop codes alongside their associated Land Cover Classification for Organic Conversion are listed at Annex 1: table 1 of this guidance. 

Different payment rates will apply based on the crop codes declared, the associated Land Cover Classification and the description of the farming system being converted, as outlined in the table below. See Section C, Payment Rates:

Ineligible land and crop codes

The following are ineligible; 

• land that is already certified as organic
• land already within organic conversion before 1 January 2027
• land previously supported to convert to organic by you cannot be re-converted using SFS Optional: Organic Conversion
• part land parcels
• common land, or land used in common where there are multiple graziers on the land, is not eligible

Ineligible crop codes for SFS Optional: Organic Conversion payments are listed at Annex 1: table 2 of this guidance.

Payment rates

Payment rates vary between land types because the costs and impacts of converting to organic farming differ across farming systems. Conversion may involve changes to management practices, reduced productivity during the transition period and additional certification and compliance requirements. 

Different payment rates help ensure that support is proportionate to the likely costs and income forgone associated with conversion, providing fair and equitable support while delivering value for public investment.

The following payment rates are available for SFS Optional: Organic Conversion;

Payment rate definitions and key requirements

Payment rate 1: horticulture

Land used for horticultural production in 2026.

The crops must be grown and sold at a commercial scale. The scale of production should be equal to commercial organic production volumes.

Key requirements

To be paid the horticulture payment rate horticultural crops must be grown on the grant award area. 

You must submit supporting documents annually. Where insufficient evidence is provided to demonstrate the  requirements have been met, payment may be withheld or permanently amended to an alternative payment rate.  

Payment rate 2: enclosed land with arable crops/ temporary grassland

Land within an arable rotation, such as arable land, grassland within an arable rotation, temporary grassland and mixed leys (also referred to as multi species or herbal leys).

Payment rate 3: enclosed land with permanent grassland / permanent crops

Permanent grassland, established over five years.

Permanent crops

Payment Rate 4: enclosed land with permanent and temporary grassland with a dairy enterprise

Land can be grassland within a crop rotation, permanent grassland or temporary grassland.

This payment rate will apply to land which supports a dairy enterprise only. (Dairy animals and dairy youngstock).

Land used for contract rearing of dairy animals is not eligible.

If you are an existing organic dairy producer, seeking organic certification on additional land you will not be eligible for this payment rate, as there would not be conventional dairy cows utilising the land when the application is submitted.

Payment threshold

Farms with multiple enterprises, for example, a dairy unit and upland sheep will only be eligible for payment rate 4 for land used by the dairy enterprise. 

Land used by the sheep enterprise will be paid on either payment rate 2, 3 or 5. 

Please note: The eligible land will be based on the number of dairy animals on the holding using a Livestock Unit (LU) calculation. Animals declared on your application will be checked against Electronic Identification Database (EID) Cymru and Cattle Tracing System (CTS) records.

The maximum area supported under payment rate 4 will be calculated based on the number of dairy animals on the holding using a maximum stocking density of 2 LU / Ha.

For example:

Example 1:

A farm with 100 dairy cows (over 12 months) and 60 dairy youngstock (6 – 12 months) will have 136 dairy livestock units (LU). Based on the use of the forage area at 2 LU / Ha, the maximum area which would receive payment rate 4 would be 68 ha. (136 LU divided by 2).

Any additional permanent grassland above the 68 Ha would be paid at payment rate 3. 

Example 2:

A farm with 120 dairy cows (over 12 months) and 80 dairy youngstock (6-12 months) will have 168 dairy livestock units (LU). The maximum area which would receive payment rate 4 would be 84 ha. (168 LU divided by 2).

If this farm only has 50 Ha of permanent grassland and the remaining area supporting the dairy enterprise is arable land, payment rate 4 would apply to temporary grassland up to the maximum 84 ha.

However, if the arable land was used for crops other than temporary grassland, (e.g. maize or whole crop) this land would only be eligible for payment rate 2.

Key requirements

To be paid the enclosed land with permanent and temporary grassland with a dairy enterprise payment rate you must maintain milk production. 

You must submit supporting documents annually. Where insufficient evidence is provided to demonstrate the  requirements have been met, payment may be withheld or permanently amended to an alternative payment rate.

Payment Rate 5: land above the upper limit of enclosure and other specified land

‘Land above the upper limit of enclosure’ includes:

Predominantly upland land parcels (or part thereof), which likely support extensive livestock system with low stocking densities. 

For the purposes of SFS Optional: Organic Conversion, ‘Land above the upper limit of enclosure’ is any land identified on the upper limit of enclosure map on DataMapWales.

‘Other specified land’ includes:

• common land used for grazing and where you are the sole registered grazier (Sole Grazed Common Land)
• field parcels with 50% or more of the total field size made up of grazed blanket bog, coastal heath, lowland heath and saltmarsh

OCB certification costs

A payment of £500 per year for the two-year conversion period will be provided as a contribution towards certification costs. 

If you already hold organic certification but are applying to convert additional land, you will not be eligible for the certification costs contribution.

Payment capping and maximum payment rate

There is no upper limit to the area of land that can be submitted for the SFS Optional: Organic Conversion.

The maximum grant award value will be capped according to the following:

In reaching any threshold, the highest paying rate will be considered first.

For example:

An applicant applies for 350 ha, made up of:

• 50 ha enclosed land with arable crops / temporary grassland
• 200 ha enclosed land with permanent grassland / crops, and 
• 100 ha of land above the upper limit of enclosure

The grant award will offer:

Once the grant award payment value has been established, this cannot be increased.  

If permanent ineligible features are introduced or identified on field parcels within the Grant Award Letter (GAL), (e.g. woodland or buildings) this area will become ineligible for payment and removed from the grant award.  Any payments previously made may be recovered.

Details of the relationship between the SFS Optional: Organic Conversion and land entered into other schemes are set out below:

Previous organic schemes

Any land that is either undertaking organic conversion or is certified fully organic cannot be considered for support under SFS Optional: Organic Conversion. 

Therefore, land funded under previous organic schemes to your business, such as Glastir Organic, Organic Conversion Scheme or Organic Support, cannot be included in this SFS Optional: Organic Conversion application.

Woodland Creation and Small Grants – Environment 

Field parcels included in a contract or grant award for the following schemes will not be eligible for SFS Optional: Organic Conversion:

• Glastir Woodland Creation
• Woodland Creation Grant 
• Small Grants – Woodland Creation 
• Woodland Restoration Scheme 
• Small Grants – Environment (woodland creation options) 
• SFS Optional: Woodland Creation Grant 
• SFS Optional: Small Woodland Creation Grant

SFS Optional: Organic Conversion field parcels may be used to apply to the Welsh Government supported woodland creation schemes. If you are successful in applying for woodland creation support, no further SFS Optional: Organic Conversion payments will be made on the planted area.

Double funding

You must not apply for SFS Optional: Organic Conversion if you are receiving funding for the same purpose from any other source.  This would be considered double funding for the same land.

If it is established you are receiving funding from another source, this may result in sanctions, the recovery of grants paid and/or future exclusion. See Section I: Payments.

You will be required to complete ‘Section 6’ of your Grant Award Letter (GAL) which will be included in the SAF for completion. This must be completed before payment is made. 

RPW Online

You can only complete an application for the SFS Optional: Organic Conversion by accessing Rural Payments Wales (RPW) Online.  

Further details regarding RPW Online are available on our website. 

Agents acting on your behalf will need to register as an RPW agent: RPW Online guidance for agents and farming unions.

Submitting an application

The SFS Optional: Organic Conversion application is available through the SFS Optional Layer Dashboard. 

Guidance on how to submit your Sustainable Farming Scheme Optional: Organic Conversion application.

All land you have management control of throughout 2026 will be pre-populated on your application. You will be required to select all field parcels that you wish to apply for SFS Optional: Organic Conversion. You may add field parcels not listed or currently registered with RPW, but you must submit a Manage My Land (MML) alongside this application. These field parcels must meet the eligibility criteria.

The livestock numbers you enter onto your application should correspond to the numbers on the holding as recorded on EID Cymru and or CTS.

It is your responsibility to ensure that the application is correctly completed and that the information provided in support of your application is accurate.

You must complete the application in full and provide all necessary documentation in support of the application. 

We will issue a maximum of two reminders for applications in draft via your RPW Online account prior to the closing date.

If your application is not eligible, you will be informed via your RPW Online account. 

If you have any questions about completing your application, please contact the Customer Contact Centre on 0300 062 5004.  They will provide help and support, including digital assistance if required.

Changes to applications 

Once your application is submitted you cannot amend it. If, having submitted your application, you need to change any of the crop codes, provided the application window has not closed, you may withdraw your original application and resubmit a new one with the correct details. 

Withdrawal of applications

Once you have submitted an application for SFS Optional: Organic Conversion you can withdraw your application at any time before you have been offered a grant award.

You can do this via ‘My Messages’ in your RPW Online account. You may apply again in any future rounds, should a further application window be made available. 

Scoring and selection

The indicative budget allocation for SFS Optional: Organic Conversion is £2m over two calendar years, 2027 and 2028.

We will select applications on their ability to contribute towards delivering the aims of the SFS Optional: Organic Conversion. 

Those applications that deliver the most towards supplying the organic market and the range of environmental benefits provided by holistic organic management are scored highest.

Applicants who have claimed the SFS Universal Layer will always be prioritised over those who have not claimed SFS Universal Layer. An additional weighting will be applied to prioritise those applicants. 

The scoring process will analyse the potential for each applications’ ability to contribute to the environmental benefits of the SFS Optional: Organic Conversion. 

This is undertaken by identifying the location of the area of land included in the application with a number of GIS layers, where they occur throughout Wales. These GIS layers inform where specific objectives of the SFS Optional: Organic Conversion can best be delivered across Wales.

For example

Organic farming practices can improve water quality and enhance designated sites, such as Sites of Special Scientific Interest (SSSI), or Scheduled Monuments and, where there is a higher priority to contribute to these benefits, applications will score higher than where there is a lower priority. 

Each layer is given a weighting, which is determined by Welsh Government’s policy priorities. Details are available at Annex 2 – SFS Optional: Organic Conversion Target Objective Layers.

A score is calculated for each application based on the area that falls within the layer using the following formula: 

 *a calculation is completed for each layer. 

For example: 

An application covering 90.24ha, of which 65.64ha falls within the Sensitive River layer, is allocated a weighting of 4 per hectare. The contribution of this objective layer to the overall score for the application would be calculated as follows: 

65.64 x 4   =  2.9 

   90.24 

The Sensitive River objective, therefore, contributes 2.9 points to the overall score for the application.

This calculation is completed for each objective GIS layer the application intersects. 

An application which intersects with land in more than one layer, particularly high priority layers, will accumulate a higher score. The scores achieved for each layer are added together to give the total score which is then divided by the total area of the application. 

All applications are ranked according to the final score achieved and the highest scorers will then be selected.

A table listing all the Objective GIS Layers and associated weighting is included at Annex 2. 

If the available budget is not sufficient to offer all applicants a grant award, Welsh Government will use a competitive selection process to decide which applicants are offered a grant award. Where applications have equal scores and are of the same value and rank on the available budget threshold, Welsh Government reserves the right to either select or reject these applications, depending on budget availability.

You will be notified whether your application has been successful or not and informed of the objectives identified on your farm used to calculate the score.

If your application is selected, you will receive a GAL. 

Grant Award Letter (GAL)

The SFS Optional: Organic Conversion grant award is for a period of five years.  The funding is paid for the first years, but you must maintain organic certification for the full five years of the award. You will be required to submit documentary evidence to support this requirement for each of the five years.

The grant award commences on 1 January 2027 and ends on 31 December 2031. 

We aim to start issuing GALs in late October 2026 and all should be received before the end of November 2026. 

You must accept your grant award within 21 calendar days of the date of the offer via the blue button on your RPW Online homepage. 

If you do not accept the grant award within 21 calendar days, the award offer will be automatically withdrawn. 

Full details of when your grant award must be accepted will be in the GAL. 

We will issue a reminder via your RPW Online account prior to the acceptance deadline date. 

We cannot accept changes to your GAL once it has been issued. 

Once you have accepted your SFS Optional: Organic Conversion grant award, you are entering into an agreement with Welsh Government and become an agreement holder for the purposes of the Agriculture Support Schemes (Eligibility, Enforcement and Appeals) (Wales) Regulations 2025. 

The SFS Optional: Organic Conversion grant award is subject to a range of relevant legislation (see Section M). Welsh Government and the agreement holder must act in accordance with that legislation.  

The offer of a grant award is made subject to terms and conditions, which will be set out in the GAL and include those set out below.

Failure to meet the terms and conditions of the grant award could result in the cancellation of your grant and / or the recovery of sums already paid, or a reduction of the amount of grant payable.

Conditions 

The award is made based on statements and declarations made by you or your representatives. The making of false or misleading statements is an offence. 

You must claim the funding in accordance with the dates set out in the indicative payment profile.

Any person who makes a false declaration or fails to notify Welsh Government of a material change to the information given in this application may be liable to prosecution. A false, inaccurate or incomplete statement or failure to notify Welsh Government of any material changes to the information given to Welsh Government may result in termination of the grant award and/or recovery of any payments.

Welsh Government may need to update the rules and conditions to take account of changes made to the Government of Wales Act 2006.

You must agree to abide by any changes following notification by Welsh Ministers.

You must comply with all applicable domestic, or international laws or regulations or official directives.

No alterations may be made to the project, including the location of the activity, without the written approval of Welsh Government.

You are required to read and understand the relevant guidance notes.

You have given details that are true, accurate and complete to the best of your knowledge and belief on the application and any supporting documentation.

You acknowledge neither Welsh Government nor any adviser appointed by Welsh Government shall be responsible for any advice given, including, without limit any advice given in relation to the grant award and you are solely responsible for all business decisions undertaken.  

You must undertake to meet any statutory obligations such as Health and Safety; employment; hygiene; environmental management and protection; animal or crop health and welfare that apply during the time of this grant award.

You must allow officers of Welsh Government or their duly authorised agent, access to inspect land and all records and information needed to establish eligibility, and the accuracy of the information provided for which you are making this application.

You must have excluded land which is under other management agreements or grants which you receive, or intend to apply for, that may have a potential for double funding.

You must maintain adequate insurances to cover against the risks which may arise in connection with any property, or any activity undertaken in delivery of the purposes. We reserve the right to require you to provide proof of your insurance.

Welsh Government may need to share some information about your grant award with other organisations, and you agree to any necessary disclosures or exchanges of information.

Welsh Government may also obtain information about you from certain other organisations or provide information about you to them in order to verify the accuracy of the information, prevent or detect crime and protect public funds. These other organisations include government departments, local authorities and other bodies as appropriate.

The publication and disclosure of information by Welsh Government will be in accordance with the obligations and duties under the Freedom of Information Act 2000, the Data Protection Act 2018, the Environmental Information Regulations 2004 and the Agriculture Support Schemes (Eligibility, Enforcement and Appeals) (Wales) Regulations 2025. Other information provided may also be disclosed where permitted by law.

The information provided in the application is subject to the Privacy Notice. The Privacy Notice explains Welsh Government’s processing and use of your personal data and your rights under the UK General Data Protection Regulation (UK GDPR).

In accordance with the legislation governing the SFS, you must notify RPW as soon as reasonably practicable, of any change of circumstances which might reasonably be expected to affect your ability to meet the eligibility criteria and/or grant award conditions. This should be within 60 days of the relevant change of circumstances. 

Where you have notified us, we may take one or more of the following actions: 

1. amend, remove or replace a condition either temporarily or permanently
2. amend, remove or replace any requirements or timescales either temporarily or permanently 
3. apply sanctions and/or reduce payments 
4. require you to repay some or all of previous payments made

Welsh Government may accept that you were prevented from fulfilling certain obligations due to a course of events amounting to exceptional circumstances. Further details are set out in Section I.

If you accept a grant award and wish to withdraw your grant award you must notify RPW using the Variation Form via your RPW Online account.

If you withdraw your grant award after you have received payment any previous payments made to you may be recovered. 

Claims

You must claim SFS Optional: Organic Conversion payments on the SAF. 

Payments will be made following successful validation of your claim and when the Welsh Government is satisfied the land conversion and certification requirements have been met. 

Payment will be made by electronic transfer to your bank account.

To receive SFS Optional: Organic Conversion payments, you must:

• have accepted a grant award within 21 calendars days of the offer date and adhere to all the requirements 
• submit a valid and complete claim using the SAF, by the SAF deadline, in the relevant claim year
• submit all relevant supporting documents by 31 December in the relevant claim year. A claim is not considered valid until all required supporting documents are submitted

Supporting documentation 

The table below sets out the supporting documents you must submit by 31 December in each year of your grant award. 

Supporting documents received after 31 December will not be accepted. 

Evidence to support payment rate 1

If you are claiming Payment Rate 1, you must submit the following; 

• cropping records, receipts and/or invoices to demonstrates horticulture crops are grown and sold at a commercial scale. The scale of production should be equal to commercial organic production volumes

In circumstances where commercial sales cannot be evidenced, for example, because the crop is not ready for harvest, e.g., a newly established vineyard or orchard, we may pay a claim where evidence can be submitted, e.g. invoices for the plants and/or geo-tagged photos of the crop in the ground, to demonstrate your enterprise will operate at a commercial scale.

Evidence to support payment rate 4

If you are claiming Payment Rate 4, you must submit the following:

• a letter of intent from a milk purchaser / processor stating, in principle, they will purchase the organic milk following conversion
• for those processing milk on the holding, confirmation and an explanation will be required of how they intend to change their processing methods and products in response to the availability of organic milk

Where insufficient evidence is provided to demonstrate the requirements have been met, payment may be withheld, claims rejected and any previous payments may be recovered.

Further information regarding submitting a claim and the submission of supporting documents will be set out in the annual SAF.

Sanctions 

It is your responsibility to make sure the claim submitted is eligible, accurate and submitted with supporting documentation.

Where we find anomalies in your claim, payments will be reduced to the amount found.

Failure to declare all the agricultural land/areas on your holding on the SAF, including all owned and rented in land and not just field parcels listed in your SFS Optional: Organic Conversion GAL, may result in your payments being reduced.

Over-declaration

Over-declaration penalties will be applied where the area declared for SFS Optional: Organic Conversion on the SAF is more than the determined area. Penalties are calculated using the area declared on your SAF which receive the same payment rate. 

If it is found that the area claimed for SFS Optional: Organic Conversion exceeds the eligible area (e.g. an ineligible feature has been introduced to the grant award area), any grant paid on the ineligible area will be reclaimed.

If the area difference is more than 3% or 2 hectares of the grant award area, the area eligible for payment will be reduced by 1.5 times the difference found.

The penalty will not exceed 100% of the amounts based on the area declared.

Below are examples of over-declaration penalties.

Example 1:

An SFS Optional: Organic Conversion claimed area for Payment Rate 1 is declared as 100ha but is determined to be 98.5ha as the claimant has built a new agricultural 

building on land under a grant award. No penalty will apply since the difference is not more than 3% or 2 hectares, but SFS Optional: Organic Conversion payment will be reduced and based on 98.5 hectares.

Example 2:

An SFS Optional; Organic Conversion claimed area for Payment Rate 1 is declared as 100ha but is determined to be 90ha as the claimant has planted a new woodland on land under a grant award. As the difference is more than 3% or 2 Ha, a penalty will apply. The SFS Optional: Organic Conversion payment will be reduced and based on 75 ha, which is 90ha minus 15ha (10ha x 1.5).

Breach of SFS Regulatory Baseline 

You are responsible for meeting the requirements of the SFS Regulatory Baseline for the full calendar year. Further details regarding the SFS Regulatory Baseline are available in the SFS Universal Layer: guidance 2026 and the full requirements are set out in the SFS Regulatory Baseline factsheets, available at Sustainable Farming Scheme: regulatory baseline 2026.

If you do not meet the requirements, sanctions or penalties may be applied to your SFS Optional: Organic Conversion payments in the year of finding the non-compliance, in accordance with the SFS Regulatory Baseline Verifiable Standards and Payment Reduction Matrix, which are also available at Sustainable Farming Scheme: regulatory baseline 2026.

Obvious error 

Welsh Government operates an obvious error provision in accordance with the legislation governing the support and may be recognised based on any overall assessment of the particular case, provided the applicant or agreement holder has acted in good faith. 

As a general rule, an obvious error may be detected from information given in the documents and information submitted as part of and in support of applications or payment claims, including supporting documents and relevant notifications, and as a result of coherence checks against other relevant information held by Welsh Government. In such cases, applications for support or payment claims may be corrected and/or adjusted at any time after their submission.

Exceptional circumstances 

Exceptional circumstances are defined as unusual circumstances which are outside the control of the applicant or agreement holder, were unforeseen and could not be avoided, despite all due care and except at the cost of excessive sacrifice on their part. Examples that may be recognised include: 

• natural events, such as prolonged adverse weather conditions, flooding, or animal or plant disease
• serious illness, injury or death affecting the business
• unforeseen loss of management control of land, for example where a tenancy is terminated or because of compulsory purchase
• financial circumstances such as bankruptcy
• evidenced supply chain problems
• criminal damage by a third party, such as arson or vandalism 

For Welsh Government to consider and accept an event as exceptional circumstances, details must be received in writing within 60 days of the applicant or agreement holder, or someone acting on their behalf, being in a position to do so.  

An event may directly affect just one member of a farm business or organisation, however, it should be explained how the events impacted on the ability of everyone in the business or organisation as a whole to meet their obligations. Additional documentary evidence may be requested and should be provided as appropriate.  

The exceptional circumstances provision is available in respect of:

• late submission of an application or claim
• late notification of supporting documentation in respect of an application or claim  
• the right to payment in respect of certain eligible areas declared on an application or claim but no longer available to the applicant or agreement holder because of an Exceptional Circumstances event 
• the inability to comply with requirements, including eligibility conditions
• penalties applied to claims. The requirement for partial or full re-imbursement of payments received

Each notification will be carefully considered on a case-by-case basis.  

Offences

Offences Regulation 19 of The Agriculture Support Schemes (Eligibility, Enforcement and Appeals) (Wales) Regulations 2025 establishes offences in relation to certain aspects of financial support provided for under those regulations. That regulation and those offences are applicable to SFS Optional: Organic Conversion. Examples of offences include at any time giving false or misleading information, failing to provide information, evidence or copies of records when requested and preventing or otherwise obstructing an inspection, including failure to provide reasonable assistance in the completion of an inspection. 

Where it is established, you have committed an offence in accordance with the regulations your grant award may be withdrawn in whole or in part.

Unacceptable behaviour

Welsh Government officials, individuals or organisations carrying out duties on behalf of Welsh Government, should not be subjected to aggressive, abusive or offensive behaviour or unreasonable demands and persistence from applicants or agreement holders or their representatives. This also applies to members of the Independent Appeals Panel.

Managing Unacceptable Behaviour of Welsh Government Customers explains what we consider unacceptable behaviour. 

Unacceptable behaviour may lead to the withdrawal of payments and/or the rejection of applications or claims

Recovery of payments

If it is found incorrect payments have been made, those payments may be recovered in whole or in part. 

Where you are required to re-pay monies, you will be notified of the debt in writing by Welsh Government. Where a debt remains outstanding, the full amount will be automatically recovered from the first available future agricultural support payments that become due to you under the SFS, or any other support established under the Agriculture (Wales) Act 2023.

Future exclusion

Future exclusion is to ensure the environmental benefits are achieved through SFS Optional: Organic Conversion by discouraging applications from those not committed to undertaking organic conversion for the duration of the five-year grant award period.

If we accept you cannot complete any SFS Optional: Organic Conversion commitments due to demonstrated exceptional circumstances, the commitment will be removed from the grant award. Each request will be assessed on a case-by-case basis.

A percentage of claimants will be selected and inspected each year to ensure compliance with the requirements of the SFS Optional: Organic Conversion.  

All inspections will be carried out by Welsh Government's Rural Inspectorate Wales (RIW) and/or other Competent Control Authorities (CCAs) or Delegated Agents on behalf of Welsh Government.

Inspections will be selected using a combined risk and random assessment process. 

Additional inspections may also be undertaken as a result of a referral from a third party, such as a member of the public or other organisations.

Where possible, inspections will be combined to check multiple elements or schemes during a single farm inspection or visit. 

For example, inspections to check compliance with the SFS Optional: Organic Conversion may be combined with inspections to check compliance with the SFS - Universal Layer, as well as any other agricultural support, such as Woodland Creation.

If you refuse to allow an inspection or obstruct an officer or fail to give reasonable assistance, the Welsh Government may reject your claim.

You must keep all records and information you need to evidence that you have provided complete and accurate information and have complied with the grant award undertakings for 10 years from the last payment of the funding. 

 You will also be required to:

• supply any information about your SFS Optional: Organic Conversion grant award within a period determined by Welsh Government    
• make available to Welsh Government, its authorised persons or its agents, records, accounts, receipts and other information including access to computer data relating to your SFS Optional: Organic Conversion grant award. Permit Welsh Government to remove any such document or record to take copies or extracts from them

The SFS Optional: Organic Conversion grant award can be transferred if the farm business which is assuming control of the land agrees to continue with the terms and conditions of the grant award. 

If, however, you sell or transfer land (written or unwritten Tenancy Agreement), without the other farm business agreeing to take over the grant award conditions, prior to the completion of the grant award period, your grant award will be cancelled, and no future payment will be made. 

Legislation changes (including changes in interpretation)

The rules for SFS Optional: Organic Conversion are based on the Agriculture (Wales) Act 2023 and the Agriculture Support Schemes (Eligibility, Enforcement and Appeals) (Wales) Regulations 2025 No. 1308 (W219).

Legislation may change from time to time, and you will be required to abide by any changes to the scheme rules, following notification from Welsh Government. 

Changes to rules or grant award

We may need to make changes to the rules and/or your GAL for a number of reasons. For example, we may need to update the management conditions to take account of the latest scientific advice or amend rules to take account of any changes to legislation. We will publicise changes on our website and, where necessary, contact you directly.

Appeals procedure

The ‘Independent Appeals Process for Rural Grants and Payments’ allow you to request a review if you feel Welsh Government has not reached a correct decision according to the rules and guidance, following acceptance of your grant award. There are no grounds for appeal at the application stage.

The appeals process consists of two stages:

• stage 1: review by Welsh Government officials
• stage 2: review by an Independent Appeals Panel (if you are dissatisfied with the stage 1 response).

The Independent Appeals Panel makes recommendations to Welsh Ministers, who take the final decision, which concludes the process.

Appeals, including supporting evidence, must be submitted via RPW Online within 60 days of the date of the letter outlining the decision you wish to appeal against.

Appellants or their representatives must not make direct contact with members of the Independent Appeals Panel. We may consider this to be Unacceptable Behaviour in accordance with the managing unacceptable behaviour of Welsh Government customers guidance. Unacceptable behaviour may lead to the withdrawal of payments and/or the rejection of applications, claims or appeals.

Further details of the appeals process and how to submit an appeal using the online appeal form can be obtained from the Customer Contact Centre or our website at: Rural Grants and Payments appeals: guidance.

Complaints procedure

Complaints will be dealt with under Welsh Government’s procedure on Complaints. Further advice on how to make a complaint can be obtained from:

You may also choose to contact:

What is monitoring and evaluation 

Monitoring is the collection of data, both during and after scheme implementation to improve current and future decision making. See the Green Book (on gov.uk).

Monitoring and evaluation are closely related, and a typical evaluation will rely heavily on monitoring data. 

Evaluation is the systematic assessment of the design, implementation and outcomes of the scheme. It involves understanding how the support scheme is being, or has been, implemented and what effects it has, for whom and why.

Evaluation also involves identifying what can be improved and how, as well as estimating the overall cost-effectiveness and policy impacts.

Monitoring Data alone cannot answer all evaluation questions. Evaluation will therefore draw on a mix of both quantitative and qualitative methods in line with the Magenta Book (on gov.uk). 

Why monitor and evaluate

Monitoring and evaluation are an important way of identifying lessons that can be learnt to improve both the design and delivery of future SFS support. 

Monitoring and evaluation of the SFS

The SFS will be monitored, evaluated and reported by Welsh Government, through: 

1. the legal requirements of the Agriculture (Wales) Act 2023 focussing on the Sustainable Land Management (SLM) objectives; and,
2. evaluation of the scheme

Agriculture (Wales) Act 2023 requirements

Under the Act, Welsh Ministers have a statutory duty to monitor, evaluate and report progress on the contribution towards achieving the SLM objectives of any support given by Welsh Government. 

Monitoring plays a vital role that enables Welsh Government to be accountable by measuring its performance against the SLM objectives and the purposes of support. Reporting provides the Senedd and the public with appropriate transparency to enable them to track progress and achievements.

The act sets out a clear monitoring and reporting framework at both the SLM objective and support scheme levels. It contains five levels of reporting:

• the Multi-Annual Support Plan (MASP) is a five year forward plan setting out how Welsh Ministers intend to provide support during the plan period to contribute to achieving the SLM objectives. The first Multi-Annual Support Plan (MASP) was published in December 2024
• the SLM indicators and targets statement sets out how Welsh Ministers will measure progress towards achieving the four SLM objectives. The SLM indicators and targets statement was published in December 2025
• the Annual Report details the financial and non-financial support provided under Section 8 of the Act during each financial year. Welsh Ministers also publish details of support provided under other powers. The first Annual Report was published in March 2026
• an impact report will be published every five years by the Welsh Government evaluating all the support provided. This will include an assessment of its impact and effectiveness of the support in achieving the purposes for which the support was provided, and its contribution to achieving objectives. The first impact report will be published in December 2030, reporting on the period up to the end of December 2029
• a Sustainable Land Management Report will be published every five years to assess the effectiveness of the actions taken by Welsh Ministers in accordance with the duty to achieve the SLM objectives. It will assess cumulative progress towards achieving the SLM objectives (since the SLM duty came into force) as well as progress made during the reporting period. It will also evaluate progress against the SLM indicators and targets and set out whether each target has been achieved. The first SLM report will be published in December 2026, reporting on the period up to the end of December 2025

The Agriculture Support Schemes (Eligibility, Enforcement and Appeals) (Wales) Regulations 2025 No. 1308 (W219)

These regulations make provision in respect of support schemes under which Welsh Ministers provide support. Regulation 8 requires a person receiving support under a support scheme to provide information or evidence to Welsh Ministers that may be needed in order to, for example, check that the agreement holder continues to meet the eligibility criteria and verify compliance with the scheme’s conditions:

Regulation 8. An agreement holder must provide, in such manner and at such times as Welsh Ministers specify, such information or evidence as the Welsh Ministers may require to:

1. check whether the agreement holder continues to meet the eligibility criteria for receipt of support
2. verify compliance with the conditions subject to which support is provided 
3. monitor the extent to which the purpose of the support scheme has been, or will be, achieved, and
4. check whether the agreement holder continues to meet the eligibility criteria for receipt of support

5. review or evaluate:

   (i) any of the activities carried out by the agreement holder under the support scheme, and 

   (ii) the success of the support scheme as a whole 

There is a direct link between monitoring of the support provided under a scheme established pursuant to section 8 of the act and the reporting framework contained within the act. To satisfy the reporting requirements all support issued will be monitored to capture the impact and effectiveness of that support, as well as to apply appropriate and effective fiscal management. 

Evidence submitted by applicants / agreement holders will be used to monitor the impact of the support schemes across the agricultural sector in Wales, including assessing the contribution of supported actions towards the SLM objectives. This may include data collected through inspections, declarations or scheme administration and will be subject to compliance with data protection legislation and scheme privacy notices.  

Evaluation of the SFS

The SFS is the primary, but not the only mechanism of support provided by Welsh Government to meet the SLM objectives.The SFS will provide a significant proportion of the monitoring, reporting and evaluation framework, ensuring the effectiveness and value for money of the scheme itself can be assessed.   To support evaluation scheme participants may be asked to take part in research activities. The information and feedback gathered through these activities will play a role in shaping future development of the scheme, helping to ensure it remains effective, responsive, and beneficial for the agricultural industry in Wales.

A future monitoring and evaluation strategy will set out how Welsh Government intends to assess how SLM objectives and schemes including the SFS will be assessed in terms of value for money and the outcomes it delivers for Wales, including economic, social and cultural outcomes.  

The strategy will recognise the long-term nature of the outcomes sought and identify interim measures which can demonstrate progress considering performance and management data from Welsh Government, Natural Resources Wales (NRW) and other service providers.

What this means for you and your data

Welsh Government may share information you have provided in connection with your SFS - Optional claim (including personal data) with third party contractors to enable monitoring and evaluation of the scheme. 

As a result, you may be contacted and asked to take part in research activities. The purpose of the research will be outlined; however, participation is voluntary. Any participation will help us to ensure that schemes remain effective.

Contractors will use any data provided only for the purpose of carrying out research activities on behalf of Welsh Government and strictly in accordance with UK GDPR.

Welsh Government will be the data controller for any personal data you provide in relation to your grant application or request for grant funding. The information will be processed as part of our public task (i.e. exercising our official authority to undertake the core role and functions of Welsh Government) and will help us assess your eligibility for funding.

Before we provide grant funding to you, we undertake checks for the purposes of preventing fraud and money laundering, and to verify your identity. These checks require us to process personal data about you to third party fraud prevention agencies.

If we, or a fraud prevention agency, determine that you pose a fraud or money laundering risk, we may refuse to provide the grant funding you applied for, or we may stop providing existing grant funding to you.

A record of any fraud or money laundering risk will be retained by the fraud prevention agencies, and may result in others refusing to provide services, financing or employment to you.

In order to assess eligibility, we may also need to share personal information relating to your application with:

• Natural Resources Wales (NRW)
• Animal and Plant Health Agency (APHA)
• Veterinary Medicine Directorate
• Welsh local authorities
• Food Standards Agency (FSA) Wales
• Department for Environment, Food and Rural Affairs  (Defra)
• other UK Government Agriculture Offices
• regulatory authorities, such as HM Revenue and Customs, local authorities, Health and Safety Executive and the Police

We may also share your information with organisations which deliver training, knowledge transfer and innovation advice and support on behalf of Welsh Government for the purposes of appropriate targeting of support.

Your information, including your personal information, may be the subject of a request by another member of the public. When responding to such requests Welsh Government may be required to release information, including your personal information, to fulfil its obligations under the Freedom of Information Act 2000, the Environmental information Act 2004, the Data Protection Act 2018 or the Agriculture Support Schemes (Eligibility, Enforcement and Appeals) (Wales) Regulations 2025.

We will publish details of the amounts paid to agreement holders who have received support under the Agriculture Support Scheme (Eligibility, Enforcement and Appeals) (Wales) Regulations 2025.  Data will be published for all beneficiaries and will include the full name, post town and post code area and district where the agreement holder is resident It will include details of the amounts and schemes for which payment has been made. However, this will not apply for those agreement holders receiving relevant support less than £1,250.00 in the financial year.  

We will keep personal information contained in line with our retention policy. If successful in your application, then your personal data will be kept for seven years after the date when you, as grant recipient, are free from all conditions relating to the grant awarded and all payments have been made. If you are unsuccessful, your details will be kept for one year after the date you provided them.

Under the data protection legislation, you have the right:

• to access the personal data Welsh Government holds on you
• to require us to rectify inaccuracies in that data
• to (in certain circumstances) object to or restrict processing
• for (in certain circumstances) your data to be ‘erased’
• to lodge a complaint with the Information Commissioner’s Office (ICO) who is the independent regulator for data protection

For further details about the information Welsh Government holds and its use, or if you want to exercise your rights under UK GDPR, please see contact details below:

The contact details for the Information Commissioner’s Office are:

Should you have any queries regarding this privacy statement please contact the RPW Customer Contact Centre.

Privacy notice: Welsh Government grants.

Enquiries: Customer Contact Centre

For all enquiries, please contact the RPW Customer Contact Centre

Enquiries can be submitted via RPW Online at any time.

Our Regional Offices are open to the public strictly by appointment only. If you need face to face support the RPW Customer Contact Centre can make a ‘Digital Assistance’ appointment for you to attend a Regional Office where a member of staff can guide you through your application and/or claim. 

Welsh Government website

For all of the latest Agricultural and Rural Affairs information, visit our website. By visiting the website, you can also sign up to receive the Rural Affairs e-newsletter which delivers the latest news directly to your e-mail inbox.

Gwlad

The Gwlad e-newsletter is Welsh Government’s e-newsletter for farm and forestry businesses and all those involved with agriculture in Wales. It contains news stories, guidance and information in an accessible, easy-to-read format.  

To keep informed and up to date with all the latest agriculture news and developments in future we would encourage you to sign up to receive the Gwlad e-newsletter. You can do this either at Announcements or at Subscribe to farming and forestry news.

Table 1: eligible crop codes for Organic Conversion

Details of all eligible crop codes for Organic Conversion alongside their associated land cover classification.

Table 2: ineligible crop codes for Organic Conversion

Details of all ineligible crop codes for Organic Conversion alongside their associated land cover classification.