Sustainable Farming Scheme: Optional and Collaborative Layers: overview of support available from 2026

I am delighted to share the next stage in the delivery of the Sustainable Farming Scheme (SFS) - the future of farm support in Wales, built with our farmers for our farmers.

The Universal Layer of the SFS started in January and the Single Application Form is now live allowing you to apply for the scheme. I hope farmers across Wales are thinking about how to integrate the Universal Actions into their everyday practices in a way that brings value to their business. 

For those farmers who want to go further, the Optional and Collaborative Layers are designed to help you build upon the foundation of the Universal Layer and do even more to improve the resilience of your farm business and local environment.

This document provides you with an overview of the support we intend to make available over the next year or so. 

It is designed to help you think about what Welsh Government support may be suitable for your farm, to help inform your planning.  More detailed technical guidance, including payment rates, will be available ahead of individual applications opening.   

This includes a range of funding to support capital and infrastructure investment on farms across all sectors, to improve the efficiency and resilience of the farm business even more, benefitting the ongoing sustainable production of food. 

We know there is a strong demand for this support. For example, in 2026 we have:

• offered support to restore or establish over 320 km of hedgerows, 
• offered grant awards to all eligible applicants after 1500 expressions of interest were submitted to the latest round of our Small Grants Efficiency scheme, and
• received applications through our Growing for the Environment scheme for almost 4,800 hectares of crops which significantly contribute to benefiting biodiversity and improving water quality, as well as providing a more diverse feed ration for livestock, saving on bought-in animal feed.

We will also be providing opportunities for longer term land management actions to enhance habitats to benefit wildlife, store more carbon, reduce flood risk and improve water and air quality.   

Some of these actions are familiar to you and some will be brand new. We continue to work with stakeholders to develop and refine these actions and this offer will evolve over the coming years. 

Some of these actions are available now, some will become available a little later, but I want all Welsh farmers to think about how you can make the most of the support on offer.

This offer builds upon the new relationship that the SFS represents between farmers and the people of Wales. It is a demonstration of our commitment to support our farmers to produce quality Welsh food on behalf of the nation, and to deliver additional benefits for our countryside. 

Huw Irranca-Davies MS
Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs
 

This document provides an overview of the Optional and Collaborative Layers of the Sustainable Farming Scheme (SFS). The purpose of this document is to provide you with a view of what opportunities will be available later in 2026 and into 2027 to help inform your future planning and let you know which actions to look out for. 

This document does not contain the technical specifications or payment rates of each Optional Action. Those details will be made available in advance of each Optional Action being open for applications.

In Chapter 1 we summarise the structure of the SFS, and the Sustainable Land Management objectives the scheme is designed to deliver against. We explain our phased approach to making the Optional and Collaborative Layers available, and that some ongoing support is based on schemes you may already be familiar with. 

In Chapter 2 we explain the structure of the Optional Layer of the SFS, made up of a number of ‘categories’ 

These categories are then described including the type of individual actions which will be available under each, the sort of payment available – i.e. capital or area-based (but not payment rates yet), and whether those actions are available only to farmers who have entered the SFS Universal Layer.

This position will evolve and further categories and individual items may be introduced over the longer term. 

In chapter 3 we outline the Collaborative Layer of the SFS. The Collaborative Layer is primarily a continuation of existing schemes, and therefore we have provided a summary of these and links to where further details can be found. 

In chapter 4 we provide a high-level description of the administrative processes which will be used to manage the Optional Layer. This includes the application process, scoring of applications and the verification and payment of Optional Actions. Technical scheme guidance will be produced in advance of applications being available on RPW Online. 

This chapter does not include reference to the Collaborative Layer, due to the very different nature of each Collaborative Action. These details will be included with the collaborative schemes as they become available. 

We have included two annexes in this document:

• a summary of Optional Action eligibility, and
• a glossary of terms 

We presented the Optional and Collaborative Layers of the Sustainable Farming Scheme in the Sustainable Farming Scheme 2026: scheme description, published in July 2025. They are designed to complement the Universal Layer which provides a foundation from which to build. 

The Optional Layer of the SFS will provide opportunities for you to undertake more targeted activity to improve the environment on your farm, and the resilience of your farm business. 

The Collaborative Layer is designed to support activity across landscapes, regions and nationally to deliver outcomes at a larger scale. We will support partnership working between farmers and other bodies, coordinated activity across multiple farms, as well as providing support through supply chains. 

This current document provides an overview of the Optional and Collaborative support which we intend to make available. This support is grouped into a series of categories described in chapters 2 and 3. 

The information contained in this document is the position as of March 2026. The Optional and Collaborative Actions outlined in this document are still being refined in partnership with stakeholders, and on different timelines. 

Full detailed technical guidance, including payment rates and application processes will be published and communicated through Gwlad, and the Welsh Government website as each category is made available. 

This document is not a consultation.

Structure of the Sustainable Farming Scheme – a reminder

The SFS is made up of three layers:

• the Universal Layer
• the Optional Layer 
• the Collaborative Layer 

These three layers are all built upon the SFS regulatory baseline and universal code, which contain a set of regulatory and non-regulatory standards which you must meet to receive SFS funding.

The Universal Layer is made up of 12 Universal Actions (UAs). You will need to undertake all UAs applicable to you and your farm each year, to receive the Universal Payment. However, there are some UAs which will not apply to all farms. 

The Universal Layer operates on a rolling annual basis, with the scheme year beginning on the first of January each year. The application and claim are made on the Single Application Form (SAF), which will be available from March to 15 May annually. 

You can follow these links for more information on the SFS regulatory baseline and the SFS Universal Layer. 

The SFS is designed to meet the SLM objectives in the Agriculture (Wales) Act, which are:

• 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

All support will operate under the act. Agricultural and ancillary activity is defined in the act and included in the eligibility criteria for the SFS. The eligibility criteria are as follows:

• undertake agricultural or ancillary activities on agricultural land 
• have at least three hectares of eligible agricultural land in Wales or be able to demonstrate more than 550 standard labour hours
• have management control of the land for at least 10 months of the calendar year

A phased approach to introducing the Optional and Collaborative Layers 

We have stated previously our intention to introduce Optional and Collaborative Actions in a phased manner, throughout the transition period up to 2029. 

This allows the Universal Actions to bed in, and by introducing Optional and Collaborative Actions in this phased manner you will have time to consider the funding on offer, to understand if it is applicable and of interest to you. 

Many Optional Actions will become available from this summer onwards, after the Single Application Form (SAF) has closed, once we know which farm businesses have entered the Universal Layer. 

The purpose of this document is, therefore, to provide you with an overview of what will be made available, so you know which actions to look out for.

Payment and budget overview

Payment for Optional or Collaborative Actions will be in addition to the Universal Payment and may include: 

• one-off revenue payments, for example for creating plans
• multi-annual revenue payments including area-based payments, for example for enhanced management of areas of habitat
• capital payments, for example for small scale equipment, or larger scale infrastructure investments

Due to the phased introduction of these Optional and Collaborative Actions, applications in 2026 will, in the main, result in payment of claims in 2027. 

A continuation of some familiar actions, and the introduction of some new actions

In this first phase, the Optional and Collaborative Layers are based upon support we are already providing or have provided previously. 

For example, for those farmers supplying the organic market, our organic maintenance support has been built upon the support you are familiar with. We will also continue providing capital funding similar to previous small grants schemes. 

We believe it is important to continue supporting some activities the industry is already familiar with, even though some of the terminology and application processes may change. 

Availability of support to farmers in and out of the SFS 

We are at the start of the transition period for SFS to replace the Basic Payment Scheme (BPS) and become the primary support mechanism for farming in Wales. 

The Optional and Collaborative Layers are designed to build upon the foundations of the Universal Layer. However, as we outline each category in this booklet, we will highlight where we intend to restrict access to certain actions only to farmers participating in the Universal Layer, while some actions will remain available to all. A summary is included at Annex 1. 

We believe it is important to provide support opportunities to all farms and to continue providing support which helps meet our priorities and commitments. However, we intend to prioritise farm businesses participating in the SFS Universal Layer, as part of the application process. 

This is not a permanent position. We will monitor the rate at which farms transition into the SFS, and the demand against the available budget. 

In addition to the SFS Optional and Collaborative Layers, in the short-term, the Horticultural Start-up, and Agricultural Diversification and Horticulture schemes will be maintained.

Working in partnership with stakeholders

We continue to work in partnership with a range of stakeholders, to ensure we incorporate a wide range of views and expertise to help us design and deliver the Optional and Collaborative Layers.        

Categories of support

The Sustainable Farming Scheme 2026: scheme description outlined a number of optional themes to be introduced in 2026. This included, for example, a focus on biosecurity and sustainable production, enhanced management of habitat and woodland, improved soil health and improvements to air and water quality.        

To enable us to deliver the Optional Actions efficiently, particularly where they contribute to multiple outcomes, and to ensure the application process is streamlined for you, we will deliver these themed activities via the following categories. They are outlined in more detail throughout this chapter: 

• capital: production and efficiency 
• capital: environment 
• sustainable production
• organic
• designated sites 
• habitat review (the process to access support for enhanced habitat management and creation of permanent new habitat)  
• temporary habitat 
• woodland management  
• woodland creation 
• small infrastructure 
• infrastructure and equipment

Capital: production and efficiency 

Aims and background

Under this category, capital grant funding is available for equipment designed to enable precision management of soils and manures, and to monitor performance of crops or livestock. This in turn will meet a range of priorities including the promotion of high standards of animal health and welfare, and improving water and air quality. 

These items benefit productivity by targeting input use, reducing disease risk and enabling safer handling of livestock, which improves the welfare of animals and safety of farmers. Targeted application of inputs, and healthier animals, benefit air and water quality and reduce carbon emissions. 

These items are designed to help you build upon the Universal Actions, by using the information gathered during UA1: soil testing, UA2: Integrated Pesticide Management, and UA12: animal health and welfare. 

This support is similar to our previous Small Grants – Efficiency Scheme. 

Eligibility

This category will be available to all farm businesses which meet scheme eligibility criteria, whether claiming SFS Universal Layer or not.

Available items or actions

Examples include, but are not limited to:

• animal handling equipment including fixed or mobile handling systems, cattle crushes, calving gate or head scoops
• identification and weighing systems including electronic weighing scales, EID handheld or panel devices
• precision application equipment including variable rate controllers for sprayers and fertiliser spreaders, direct drills, weed wiper or slurry management equipment
• biosecurity items including feed bins or badger proof feed troughs
• soil management equipment including subsoilers and aerators
• grain storage and processing equipment including moisture meters, grain temperature sensors or crop rollers
• water management equipment including above or below ground water harvesting and filtering equipment, boreholes, or bowsers (with integrated troughs)
• computer equipment, software, or sensors (including GPS, digital weather stations, carbon dioxide or ammonia sensors)

The list of eligible items will be reviewed and developed over time.

Payments

We will provide support of between £500 and £15,000. 

All eligible items will be of a standard specification, for a standard available payment at 40% of total eligible cost (excluding VAT). The equipment supported under this category is widely available through a range of manufacturers and suppliers.

You will be able to submit applications totalling greater than £15,000, but the Welsh Government contribution will be capped at £15,000 or at 40% of total eligible costs (whichever is lower).

Advice and support

The Farming Connect benchmarking tool FARMDATA+ can help you track Key Performance Indicators (KPIs) to identify areas for attention.

Online tools on improving air quality (from Farming Connect) and reducing GHG emissions (from Farming Connect) can guide you through a typical on farm scenario highlighting the various ‘hotspots’ and what support is available to mitigate against each. 

The following e-learning modules available from Farming Connect will count towards your UA4: Continuous Professional Development, and may help you prepare for undertaking these Optional Actions:

• overview of reduce, reuse and recycle inputs, nutrients and waste
• reducing emissions and improving sequestration on farm
• reducing ammonia emissions  
• lowering the risk of diffuse pollution
• efficient water use (including harvesting and storage)

Capital: environment 

Aims and background

Under this category, capital grants are available for actions designed to benefit wildlife, lock up carbon and help control water quality and flow, at the same time as benefitting your farm by providing secure boundaries or shelter. 

These actions may help you meet some of the planting you have identified under UA10: tree and hedgerow planting opportunity plan.

The range of actions available under this category is similar to that available in our previous Small Grants - Environment scheme. 

Eligibility

This category will be available to all farm businesses which meet scheme eligibility criteria, whether claiming SFS Universal Layer or not.

Available items or actions

This includes a range of ‘main’ actions. To support these, some mandatory and voluntary ‘supporting’ items may also be available, however, supporting items will not be available by themselves. 

Examples of main actions include, but are not limited to:

• hedgerows: planting, coppicing and gapping up, or hedge laying
• traditional field boundaries: restoration of features including dry stone walls, earth banks, and slate fencing
• drainage, and clean and dirty water separation (cross drains, kerbing, guttering and downpipes)
• small scale tree planting - traditional varieties of orchard fruit trees, specimen planting within parklands, sabre planting in upland habitats, and small-scale field planting
• restoration of water features - pond restoration and soft engineering of riverbanks to prevent excessive erosion

Supporting items are available depending on the main action being undertaken. They include a range of fencing, gates, tree guards and water troughs and piping.

Payments

We will provide support of between £500 and £20,000. 

All eligible items will be of a standard specification. All actions will be funded at a standard payment rate.  

You will be able to submit applications totalling greater than £20,000, but the Welsh Government contribution will be capped at £20,000. 

Tree planting and links to UA10: tree and hedgerow planting opportunity plan

Under UA10: tree and hedgerow planting opportunity plan you are required to identify where new tree planting, or hedgerow establishment can be integrated within the farm. 

You are also required to plant at least 0.1 ha of new tree planting or 250 individual trees, by the end of 2028.

Any hedgerow creation or restoration included in your plan can be funded by these Optional Actions. 

The small-scale planting (excluding orchard trees), and new individual hedgerow trees included as part of a new hedgerow can count towards the 250 trees.

For larger scale tree planting see Woodland creation.

The capital works included in this category may also be included in site specific plans if you have requested a Habitat Review to undertake enhanced habitat management, or within a Designated Site Management Plan if your farm includes a designated site such as a Site of Special Scientific Interest (SSSI).

Advice and support

Farming Connect can provide subsidised training (up to 80%) for practical tasks such as dry-stone walling and hedgerow management. 

The following e-learning modules available from Farming Connect will count towards your UA4: continuous Professional Development, and may help you prepare for undertaking these Optional Actions:

• hedgerow management cycle
• the role of trees 

Sustainable production

Aims and background

The aim of the sustainable production Optional Action is to incentivise the livestock sector to adopt practices to improve productivity and efficiency whilst also reducing greenhouse gas (GHG) emissions. 

This category is a brand-new method of support and the information below is an overview. Further development is required to ensure it meets our ambitions. 

Eligibility

These Optional Actions are only available if you are in the SFS Universal Layer. 

Available items or actions

Initial support will be focused on: 

• reducing the age to slaughter of beef cattle, and 
• sire registration

Reducing the age to slaughter of beef cattle

If you apply for this action, you will require a calculation of the average age of clean beef (over 12 months and under 36 months) which were sent to slaughter in a calendar year. We are considering how best this calculation will be delivered. This will be the farm baseline. 

You would need to demonstrate a reduction in the age of slaughter of 14 days per year compared to the farm baseline to generate a support payment.

The benefit of this approach is that it has the potential to influence all beef producers from those with continental breeds through to those with slower maturing native breeds. This approach means that all farmers creating a productivity and efficiency change would be eligible to receive payment.

The animal must be fit for human consumption, slaughtered at an approved slaughterhouse and not be subject to disease control legislation.

You would have to adhere to the retention period requirement prior to slaughter, including at least 100 days on farm prior to slaughter with a buffer of seven days to allow for movements via livestock market. 

There is no one specific method by which you are being asked to reduce the age to slaughter. You will need to consider where you can make improvements to nutrition, grassland management, genetics and improvements to animal health and welfare. 

You will need to measure the Key Performance Indicators by completing either ‘Concentrate used kg / head - beef finishing’ or daily liveweight gain (DLWG): beef finishing’ under UA3: benchmarking. 

We intend for verification of this action to be undertaken via cattle movement tracing, rather than farm inspection. 

Payments

The payment is made up of two parts:

• support payments paid on animals sent to slaughter where the age to slaughter interval is reduced by 14 days compared to the farm baseline
• maintenance payments paid on animals where the finishing age to slaughter is less than 22 months

Both payments are available where both criteria can be demonstrated 

Additional support may be available through Capital: production and efficiency such as handling facilities and weighing equipment.  

Fuller technical details will be available prior to application

Sire registration

Under the current cattle identification regulations, the recording of the sire identification is voluntary. This action is an incentive to record the sire when calves are registered. 

Sire registration is an important step in helping to link estimated breeding values (EBVs) to traits that can aid management decisions allowing improved productivity and assisting GHG mitigation. 

By recording the sire when registering calves, data can be collected on the offspring of that sire that can then be used to provide additional data about the sire’s performance and help with future decisions that could affect productivity.

A key tool in driving forward improvements in these KPIs is understanding the genetic potential of the stock, through understanding both sire and dam genetics. Sire registration is therefore a key step in: 

• being able to trace sire genetics in offspring to understand their potential, and 
• developing more robust EBVs to support informed sire selection

Increasing the level of sire registration will increase the availability, accuracy and relevance of the EBVs that can be calculated for the beef and dairy herd. Where sires are registered, this has the potential to bring a range of benefits:

• improved ability to select sires to deliver productivity traits that will either enhance the productivity of their offspring or increase the efficiency of their daughters as future dams
• improve traceability of genetic traits in animals purchased as stores or finishers to enhance overall efficiency of beef and dairy production systems
• improved traceability of genetic traits to allow breeders to select the best heifers to improve the overall efficiency of their breeding programs

Payments

Payment will be available for calves registered which include the sire registration (either an official UK tag number or Artificial Insemination (AI) code). 

Advice and support

The Farming Connect benchmarking tool FARMDATA+ can help you track Key Performance Indicators (KPIs) to identify areas for growth.

The following e-learning modules available from Farming Connect will count towards your UA4: Continuous Professional Development, and may help you prepare for undertaking these Optional Actions:

• benchmarking and business planning
• grassland management (including multi-species swards and mixed grazing)
• animal health improvement cycle
• genetic improvement in livestock
• animal welfare

Organic farming

Aims and background

This category is designed to support farmers supplying the organic market and the range of environmental benefits provided by holistic organic management. 

There is no specific dependency or link to any of the SFS Universal Actions. 

Eligibility

This category will be available to all farm businesses which meet scheme eligibility criteria, whether claiming SFS Universal Layer or not.

If you have received previous funding for organic conversion on land where organic certification has since lapsed, you may not be eligible for re-conversion payments. 

Organic farming support

We have published details of our support for the maintenance of organic farm businesses in 2026 including eligibility, payment rates and descriptions of land types. Full scheme guidance has been published within the SAF 2026 rules booklet.

Organic farming support will be available on whole land parcels continuously certified with a recognised Organic Control Body (OCB) for the entire duration of the 2026 calendar year.

Organic conversion

Organic conversion support will be a five-year agreement. All land entered must be continuously certified with an OCB for the five-year duration from 1 January 2027.

We will pay organic conversion payments for the first two years, as long as organic conversion on the specific land parcels started after the organic conversion scheme was offered, and before 1 January 2027. 

You will be able to apply for organic farming support payments from the third year.

Organic conversion will only be available on whole land parcels, but you do not need to enter your whole holding into organic conversion. 

Existing organic producers can apply on land not currently certified as organic or not currently in conversion. 

This scheme will be similar to previously available organic conversion support scheme. 

Advice and support

Farming Connect can provide subsidised training (up to 80%) on topics relevant to organic production. 

The following e-learning modules available from Farming Connect will count towards your UA4: Continuous Professional Development, and may help you prepare for undertaking these Optional Actions:

• lowering external inputs to maximise profits and benefit the environment
• converting to organic or regenerative farming
• soil health

You should contact the OCBs for more comprehensive information on organic conversion and maintenance. 

Habitat management and habitat creation

If you are interested in undertaking habitat management or creation over and above the requirements of the Universal Actions, there are different opportunities for you to consider.

Most of the Optional Actions outlined elsewhere in this document are available for you to choose independently. However, the long-term nature of habitat management and creation requires deeper consideration to ensure actions are appropriate for the local soil conditions, water tables, priority species, and wider landscapes. We must also ensure they are appropriate and beneficial for your farm, so we will also need to consider your own priorities and current management practices. 

Therefore, most of the habitat related Optional Actions will require some partnership working between you and a field support officer. This will help to optimise the opportunities available, and to avoid unintentional consequences. We endeavour to keep these processes as efficient as possible, and will keep them under review as farmers start to choose these actions. 

Targeted habitat management provides numerous benefits for nature, from providing feed sources to pollinator insects, shelter and breeding areas for farmland birds and, by connecting isolated areas of habitat, we can enable less mobile plants and animals to move around the countryside. 

More diverse habitats can also provide more diverse forage for livestock, can lock up more carbon and can help reduce flood risk. 

Which process do you need to follow

If you have designated site, such as a Site of Special Scientific Interest (SSSI) on your farm, you are required to complete a designated site management plan (DSMP) with Natural Resources Wales (NRW) as part of the Universal Actions. See Designated sites below. Check your SFS map on RPW Online if you are uncertain whether you have a SSSI on your farm.

If you wish to undertake enhanced habitat management or permanent habitat creation and you do not have a SSSI on your farm, see Habitat review below. 

These two processes are similar, except for whether you work primarily with NRW or Welsh Government.

If you are interested in creating temporary habitats only, please see Temporary habitat for actions which you can choose without working with a field support officer. 

If you are interested in support for capital works such as hedgerow creation, please see Capital: environment. 

Eligibility

These Optional Actions to enhance habitat management and create permanent new habitat are only available if you are in the SFS Universal Layer. 

Designated sites 

If you have a designated site such as a SSSI on your farm, under UA7 Designated Site Management Plan, you are required to work in partnership with NRW to develop a Designated Site Management Plan (DSMP). The deadline for completing this DSMP is the end of 2030 in recognition of the time it will take NRW to work with all relevant farmers across Wales. 

NRW will contact you in due course to begin the process. Visits will be prioritised based on a set of criteria designed to optimise the benefits in our designated sites network, and the number of farms who enter the SFS in 2026.  

During this process, NRW will be able to discuss management actions to enhance the habitats within the designated areas of your farm and, potentially, a slightly wider buffer area also. 

The DSMP will contain a schedule of works (SoW) which is likely to include a set of area-based actions, plus supporting capital works. These will be targeted specifically for the habitats within the designated area of your farm, recognising the condition they are currently in, and opportunities for enhancing them. 

As part of this process, NRW will process any relevant consents they are responsible for to streamline the process for you to then to apply for the funding to implement the SoW.

Please note: we have written to farm businesses who have maintained management of designated sites in Glastir and through the Habitat Wales Scheme in 2024 and 2025. We will work with them on the potential continuation of existing arrangements through this optional category.

Habitat review

For habitats not designated as SSSI where you wish to undertake enhanced habitat management or to create new permanent habitat, you will be able to request a Habitat Review via your SFS dashboard. The following process will be similar to that described above for designated sites.

A field support officer will contact you. Visits will be prioritised depending on the type of habitats present on your farm, and the number of farms who enter the SFS in 2026.

A field support officer will be able to review your mapped data, then visit your farm to verify and assess the condition of your existing habitats and discuss your current management practices with you. 

Working in partnership with you, your field support officer will develop a five-year farm specific management plan containing a SoW. This SoW will contain a set of habitat actions, and potentially some supporting capital works applicable to the habitats on your farm, and the opportunities for improving them. You will then be able to apply for the funding to implement the SoW. 

This will be a familiar process for farmers who have previously participated in Tir Gofal or Glastir Advanced.

Available items or actions

Whether you have worked with NRW on a designated site, or with Welsh Government on a non-designated site, the content and structure of the resulting management plan will be similar.

There are many different habitat management actions to be considered depending on the nature of your land. The enhanced habitat management actions available here are designed to complement UA5 Habitat maintenance. However, to ensure these Optional Actions are providing value, they must demonstrate additionality over and above the Universal Actions. This might mean more targeted grazing patterns, or more specific dates for activities such as hay cutting. 

Our ambition is to create a tailored approach to the requirements of the habitat on your land. For example, if a particular area of habitat has been historically overgrazed or under-grazed, we will work with you to create a specific grazing programme to benefit the habitat, which may evolve over time. This approach is intended to introduce more flexibility to that which may have been adopted in previous schemes. 

Each habitat type will have a standard technical specification, with any specific modifications for the required grazing pattern on your farm added if applicable. These details will be made clear before you agree to any habitat management or creation outlined in the SoW. 

The enhanced habitat management actions can be broadly grouped as follows: 

• grassland and heathland habitats such as pasture and hay meadow options in the lowlands and uplands
• coastal areas including saltmarsh, sand dunes and coastal grasslands
• wooded habitats such as parklands, orchards, wood pasture and scrub
• wetland habitats such as bogs, reedbeds, fens, floodplain meadows, riverside corridors and wet grasslands important for wading birds

As well as these main habitat management actions, there may also be some supplementary actions available to address the particular needs of your farm, depending on the condition of the habitat and what we are trying to achieve. These supplementary actions might include:

• grazing with heavy stock or native breeds at risk
• raising water levels to rehydrate damaged peatlands and other habitats
• restricted use of avermectins (to benefit dung invertebrates, which can be a vital food source for birds such as chough)

There may also be some habitat related capital works available. These could include:

• fencing, water provision and other grazing infrastructure to enable more targeted grazing patterns
• control of domineering vegetation such as bracken or purple-moor grass
• control of Invasive non-native species (INNS)
• management of firebreaks
• bunding or grip blocking to restore damaged wetlands, including peat bogs

Depending on the needs of any particular habitat, these management actions, supplementary actions and capital works could be stacked, with a combination of area and capital payments available in the same location. These payments would be in addition to the UA5: habitat maintenance payments available under the Universal Layer. 

There may also be opportunities to create new permanent habitats to restore lost or modified habitat areas, and to connect isolated areas of existing habitat. Permanent habitat creation options could include:

• creating new wetlands, such as reedbeds or ponds
• planting new wood pasture or traditional orchards
• allowing improved grasslands to revert to more species rich pastures or haymeadows

The supplementary actions and supporting capital works may also be available in conjunction with permanent habitat creation actions. 

You should be aware that any existing semi-natural habitats, or any areas of new permanent habitat that you create must be retained as habitat subject to the Environmental Impact Assessment regulations. 

Newly created permanent habitat created by 31 December may count towards the 10% habitat requirements of your farm in the following year. It may also be eligible for UA5: Habitat maintenance payments under the Universal Layer, if there are no long term associated revenue payments associated with it under the Optional Layer.

Advice and support

The following e-learning module available from Farming Connect will count towards your UA4 Continuous Professional Development, and may help you prepare for undertaking these Optional Actions alongside working with NRW or a field support officer:

• protecting and enhancing farm ecosystems
• managing peatland
• natural flood management
• benefits of using rare and native breeds
• habitat identification
• semi-natural habitat creation: in-field options
• habitat management  
• farming in protected sites

Temporary habitat

Aims and background

Under this category, we will support you to create areas of new temporary habitat on agriculturally improved land.

Creating temporary habitats on agriculturally improved land can have multiple benefits for nature, such as providing foraging areas for pollinator insects and other beneficial invertebrates. 

Any new area of temporary habitat will have value for wildlife, however, these new temporary habitats become more valuable if used to connect other existing habitat areas. 

Some temporary habitats, such as mixed leys, can have direct benefits for food production, by refreshing older leys and making them more resilient to extreme weather conditions. 

This Optional Category is derived from our existing support scheme Growing for the Environment.

Please note: there is no requirement for you to work with our field support officers before you choose which temporary habitat creation actions you want to undertake. 

If you are claiming the SFS Universal Layer, and cannot currently meet the scheme requirement for 10% of your farm to be maintained as habitat, you will need to create temporary new habitat as part of UA6: Temporary habitat creation on improved land. Any temporary new habitat you create under this Optional Action will need to be over and above UA6.

Eligibility

This category will be available to all farm businesses which meet scheme eligibility criteria, whether claiming SFS Universal Layer or not. It will only be available to farmers claiming the SFS Universal Layer where they have already met the 10% habitat threshold.

Available items or actions

There is a range of temporary habitats available suitable for arable, pasture, upland or lowland systems. The temporary habitats available are:

• mixed leys, with or without closed period to enable flowering 
• red clover or lucerne
• undersowing maize
• wild bird seed crop
• unsprayed spring sown cereals 
• unsprayed spring sown cereals undersown with red clover or mixed ley
• unsprayed cereal and protein crop mix
• unsprayed root or forage crop with ungrazed field margins
• unharvested cereal headlands, or fallow margins next to arable crops 
• retained winter stubbles after cereal crops
• cover crops

This list will be kept under review and temporary habitat types may be added or removed in future years. 

A technical specification will be available for each temporary habitat (including seed mixes, application rates, minimum cultivation requirements, establishment and retention periods) prior to the application period. 

Payments

Payments will be made per hectare of temporary habitat created. The minimum eligible area is one hectare of agriculturally improved land, this can be made up of multiple smaller areas of 0.1ha or greater. The maximum funding available is £5000 per year. We will pay standard costs for each different temporary habitat created, irrespective of invoice costs. 

The payment per hectare will support the costs of establishing the temporary habitat. All actions will be funded at a standard payment rate. 

There is no capital funding for items such as fencing available under this category.

Advice and support

The following e-learning module available from Farming Connect will count towards your UA4: Continuous Professional Development, and may help you prepare for undertaking these Optional Actions:

• soil health
• protecting and enhancing farm ecosystems

Other important information

If you are claiming Universal Payments, you must meet the SFS Universal Layer requirement for at least 10% of each farm to be maintained as habitat before any additional temporary habitat creation can be funded by these Optional Actions.

You should take care when considering which permanent grassland (claimed as GR2 on SAF) is suitable for cultivation to create temporary new habitat. It may already include high existing habitat potential. Selecting permanent pasture younger than 10 years provides a good rule of thumb to reduce this risk. However, the definition of improved land under the Environmental Impact Assessment regulations must be used to determine which land can be cultivated.  

Woodland management  

Aims and background

This woodland management category will build upon UA9: woodland maintenance in the Universal Layer to support you in bringing broadleaf, coniferous and mixed woodlands into active management. 

Ancient Semi-Natural Woods, Plantations on Ancient Woodland Sites and Restored Ancient Woodland Sites will be given priority.

There are multiple benefits of managing existing woodlands, including for nature, but also in the potential to improve commercial opportunities, where appropriate. 

Different approaches to woodland management are being developed. In the short term we will make available a set of capital actions appropriate for simple woodland management. We are also developing a fuller forest management plan to be introduced at a later date. 

Eligibility

This category will be available to all farm businesses which meet scheme eligibility criteria, whether claiming SFS Universal Layer or not.

Available items or actions

Capital items available to manage woodlands include:

• fencing and gates where there is a management need
• control of Invasive Non-Native Species (INNS)
• tree surgery
• bird and bat boxes for specialist woodland species where they exist such as Bechstein and Barbastelle bats, or Pied flycatcher
• protection / maintenance of ancient / veteran trees 
• veteranisation (artificial aging) of younger trees

Payments

Capital payments at standard rates will be available to support woodland management. 

Advice and support

Farming Connect can provide subsidised advice (up to 80% for eligible businesses) on woodland management and creation topics such as control of invasive species, planting and establishing woodlands, safe use of a chainsaw.

The following e-learning modules available from Farming Connect will count towards your UA4: Continuous Professional Development, and may help you prepare for undertaking these Optional Actions:

• the role of trees
• woodland management

Woodland creation 

Aims and background

These actions are available to support planting of farm woodlands, and agroforestry. 

There are multiple benefits of planting additional trees and woodland including the creation of wildlife habitat, sequestering carbon, and reducing the risk of downstream flooding. 

There are also direct benefits of integrating woodland and tree planting throughout your farm, such as providing more shade or shelter to boost livestock productivity. In hot weather livestock can overheat, which can lead to loss of appetite and lower yields. In bad winter weather, carefully located shelter can reduce lamb losses and improve weight gain. 

You may also be interested in investing in a future timber crop to benefit a more diversified farm business. 

Under UA10: tree and hedgerow planting opportunity plan, you are required to identify opportunities for new tree planting by the end of your first year. 

You are also required to undertake a minimum of 0.1 hectare of new tree planting, or 250 trees, by the end of 2028 (or at least with a planting application submitted, for planting by end March 2029). Any tree planting you have undertaken since 1 April 2022 will also count towards this planting requirement, but we do encourage you to consider further planting where possible. 

You may choose to use this woodland creation support to fund this planting.

Eligibility

This category will be available to all farm businesses which meet scheme eligibility criteria, whether claiming SFS Universal Layer or not.

Available items or actions

Our refreshed woodland creation support became available in March 2026. Full details of technical requirements, payment rates and application processes can be found here: 

Small grants woodland creation for small scale planting of up to two hectares on low sensitivity areas

Woodland creation grant for larger scale planting of two hectares and over, or on more sensitive areas

Woodland creation planning scheme to support the development of new Woodland Creation Plans for planting over two hectares, and areas not suitable for the Small Grants Woodland Creation scheme

Additional supporting capital works have also been introduced such as water troughs to enable planting next to watercourses, where water access for livestock is a consideration. 

Payments

Our woodland creation payment rates have recently been revised, including the introduction of an additional incentive for certain broadleaf tree planting options undertaken by the end of 2028. 

If you plant woodland through our woodland creation grants and receive ongoing maintenance and premium payments, you will not receive payments under UA9: woodland maintenance in the Universal Layer for that specific area of new woodland. 

Advice and support

Farming Connect can provide subsidised advice (up to 80% for eligible businesses) on woodland management and creation topics such as control of invasive species, planting and establishing woodlands, safe use of a chainsaw.

The following e-learning modules available from Farming Connect will count towards your UA4: Continuous Professional Development, and may help you prepare for undertaking these Optional Actions:

• the role of trees
• woodland management

Small infrastructure 

Aims and background

Under this category, capital grant funding is available for small scale infrastructure, primarily farmyard roofing designed to separate clean and dirty water around exposed farmyards where manure and slurry is produced or stored.

These items can also benefit animal health and welfare, as well as benefiting air and water quality. 

These Optional Actions are designed to help you build upon the information you gather under UA3: benchmarking and UA12: animal health and welfare. 

These items are similar to our previous Small Grants – Yard Coverings. 

Eligibility

This category will be available to all farm businesses which meet scheme eligibility criteria, whether claiming SFS Universal Layer or not.

Available items or actions

This includes:

• roofing over livestock feeding areas 
• roofing over livestock gathering areas
• roofing over manure storage areas

This funding is available to install new impermeable roofing on areas used specifically for these purposes, where there is no current roof covering. Clean water from new roofing must be diverted to a clean water drain or rainwater harvesting system. 

Each item will have a technical specification with detailed requirements, including where relevant, associated handling facilities, drains, bunds and storage capacity. 

Further detail, including payment rates, scoring criteria, technical specifications and application details, will be published ahead of applications becoming available.

Payments

We will provide support of between £3000 and £15,000. 

Payments will be based on a standard rate per metre square. All eligible items will be of a standard specification, for a standard available payment at 40% of total eligible cost (excluding VAT).

You will be able to submit applications totalling greater than £15,000, but the Welsh Government contribution will be capped at £15,000 or at 40% of total eligible costs (whichever is lower).

Advice and support

The following e-learning modules available from Farming Connect will count towards your UA4: Continuous Professional Development, and may help you prepare for undertaking these Optional Actions:

• overview of reduce, reuse and recycle inputs, nutrients and waste
• benchmarking and business planning
• nutrient management planning
• building soil fertility (slurry/muck, crop rotation, green manures)
• reducing ammonia emissions 
• lowering the risk of diffuse pollution

Infrastructure and equipment 

Aims and background

Under this category, capital grant funding is available for large scale farmyard infrastructure investments and other equipment selected to improve nutrient management, reduce on-farm pollution and improve biosecurity. 

These investments benefit your farm business, as well as having a positive impact in biosecurity, animal welfare and water, soil and air quality. 

This Optional category is designed partly to help you build upon the information you gather under UA3: benchmarking and UA12: animal health and welfare. 

This category is similar to our previous Nutrient Management Investment Scheme. 

Eligibility

The nutrient management related funding under this category will be available to all farm businesses which meet scheme eligibility criteria, whether claiming SFS Universal Layer or not. 

The biosecurity related funding will only be available to farm businesses who have entered the Universal Layer and have completed the biosecurity assessment required under UA12: animal health and welfare.

Available items or actions

Examples include, but are not limited to:

• stores including slurry stores and associated reception pits, storage tanks for lightly fouled water, covered manure stores, or silage clamps
• covers and roofing including fixed floating membranes to cover lagoons, fixed cover for existing above ground slurry tanks, or roofing for existing yards
• precision application equipment including vacuum tanks or pumped tanks with associated band spreader, trailing shoe, or slurry injectors
• storage for chemicals, pesticides, fuel or oil
• other investments including yard renewal with underground drainage, slurry separators, slurry scraping systems, air scrubbers, or water harvesting and filtering equipment (above or below ground)
• livestock isolation and vehicle disinfection facilities.

Payments

We will provide support of between £12,000 and £50,000. 

You will be able to submit applications greater than £50,000, but the Welsh Government contribution will be capped at £50,000 or at 40% of total eligible costs (whichever is lower). The Welsh Government contribution will be higher (at 50%) for certain items in relation to slurry storage and management.

Second hand equipment is eligible where it can be demonstrated the item complies with current health and safety legislation, is fit for purpose and has at least five years life expectancy remaining.

Unlike most other Optional Actions, these larger scale infrastructure investments are bespoke to the individual farm, therefore, standard costs are not applicable. You will be required to submit three quotes in support of your application and our funding will be offered in line with the lowest of the three quotes. 

Submission of a planning application will be required as part of the application process. 

For grants for roofing support up to £15,000  see Small infrastructure above. For other standalone equipment see Capital – production and efficiency. 

Advice and support

The following e-learning modules available from Farming Connect will count towards your UA4: Continuous Professional Development and may help you prepare for undertaking these Optional Actions:

• overview of reduce, reuse and recycle inputs, nutrients and waste
• benchmarking and business planning
• nutrient management planning
• building soil fertility (slurry/muck, crop rotation, green manures)
• reducing ammonia emissions 
• lowering the risk of diffuse pollution

In the Sustainable Farming Scheme 2026: scheme description we outlined the following collaborative support to be available in 2026:  

• innovation, research and development
• collaborative market and supply chain
• collaborative landscape scale activity

Similar to the Optional Layer, additional payments could be available for undertaking Collaborative Actions including one off revenue payments, multi-annual management payments, or capital payments. This is particularly relevant to the collaborative landscape activities. Any works undertaken as part of a Collaborative Action must not duplicate works being undertaken as part of existing Universal or Optional Actions. 

Other support is available in the form of advice and guidance rather than payments to farm businesses, such as through the collaborative market and supply chain theme. 

Collaborative projects may be supported directly by Welsh Government or potentially managed through third-party facilitators. 

Due to the very different nature of each of these Collaborative Actions, this chapter does not include specific detail on funding limits or application processes.  

This chapter does not contain details on specific eligibility criteria, however you will not need to participate in SFS Universal or Optional Layers to be eligible for Collaborative support.    

Innovation, research and development

Aims and background

Harnessing the potential of innovative new approaches is key to solving many of the challenges we face. In 2023 we published an Agri-tech action plan for Wales as well as an Innovation Strategy for Wales that places innovation with respect to agriculture and food as key to continued economic success in Wales.

Our ambition is to exploit the potential of agri-food technology through a blend of collaborative, coordinated activities delivered by government, commercial and academic stakeholders working together. This includes supporting initiatives such as the Agri-Food technology challenge fund.

This fund has been used to develop projects on aspects such as waste reduction, adoption of Artificial Intelligence (AI) technologies, and adding value to primary agricultural produce.  

Some of the projects currently in development are exploring issues on: 

• sheep milk sector
• crop nutrients
• water stress monitoring
• creation of a digital platform to offer short form video training 
• development of tools that bring catchment information for farms, rivers, and other data together

As these projects are developed, our aim is to help commercialise them in a way that will directly benefit farmers, and information will be shared through Farming Connect. 

Collaborative market and supply chain

Aims and background

Under this category we will continue to provide an extensive programme of advisory services, discussion groups, and tailored development programmes to help farmers adapt to modern supply chains. These programmes provide resources for farm businesses to diversify or develop a food or drink product, access markets, and to share insights from research. 

Information and insights from these programmes are shared with farmers through Farming Connect, and through Food and Drink Wales. You can contact them for more information at Contact us | Business Wales - Food and drink. 

Examples of advisory and support services available to individual farm businesses include: 

Our clusters programme is designed to bring businesses with common interests together. This helps them to promote their sector, create links with wider initiatives, solve problems collaboratively, and provide technical support. For more information on our clusters, read Cluster Network (on Food & Drink Wales).

The current clusters programme includes:

• fine food
• horticulture
• NutriWales
• export
• drinks cluster
• sheep's milk cluster (from April 2026)

The Helix Programme can support farm businesses who are currently or are considering diversifying into marketable product development. Helix can assist by identifying the right machinery to buy, ingredient selection, process refinement, labelling compliance, equipment sourcing, and general troubleshooting. This contributes to cost savings, efficiencies, and potentially identifying new retail and hospitality markets. 

Cywain provides targeted, growth focused support for start-up to micro, small to medium sized Welsh food and drink businesses to scale up and positively represent Wales’ food and drink industry in wider markets.

This support can include strengthening supply chain links, building business capacity, branding support, trade advice and supporting new businesses at trade events. 

Collaborative landscape scale activity

Aims and background

Under this category, we aim to support collaboration between farmers, foresters, land managers and other organisations to work together at a landscape, catchment, or regional level to deliver outcomes that cannot be delivered on a single farm. 

Coordinating activity at a larger collaborative scale makes it possible to tackle bigger issues. For example, coordinating activity within a whole water catchment can have increased benefits for water quality and flood risk reduction. 

Enhancing condition, or extending and connecting habitats across the landscape can strengthen ecosystem resilience against climate change and support vital services such as pollination. By coordinating habitat restoration at a larger scale, we can create better links between priority species’ breeding, feeding, roosting, and overwintering sites. This is especially valuable when these areas are spread across different parts of Wales.

Our support for collaborative landscape activity includes the continuation of three existing mechanisms. However, we will continue to refine these mechanisms and consider new ones:

Ffermio Bro - Farming in Designated Landscapes

Ffermio Bro is funded by Welsh Government and delivered through Wales' National Parks and national landscapes. The program focuses on improving biodiversity through meaningful collaboration across multiple farms to have an impact at a landscape scale. Ffermio Bro started in 2025, and as the scheme moves into its second year, it will focus on supporting groups of farmers working together collaboratively to deliver more ambitious projects. 

Capital items which can be funded through Ffermio Bro include:

• restoration and creation of hedgerows
• restoration of stone walls, earth banks and slate fences 
• Invasive Non-Native Species (INNS) control
• low density tree planting
• activities to support natural flood risk management (NFRM) 
• enhancing habitats including upland, lowland and wetland habitats
• Access improvements to increase engagement with nature and landscapes

Ffermio Bro is available to all farm businesses which are located within, or partly within, our National Parks and national landscapes, and which meet scheme eligibility criteria, whether claiming the SFS Universal Layer or not.

For more information on Ffermio Bro and to contact your local advisor, see Ffermio Bro Scheme Details (on landscapeswales.org.uk). 

Habitat Wales Scheme (Commons) 

The Habitat Wales Scheme (Commons) will be extended in 2026, for those Grazing Associations holding agreements in 2025, to continue supporting coordinated grazing arrangements on these important sites. We have already engaged with those Grazing Associations on this matter. 

Integrated Natural Resources Scheme (INRS) 

The INRS has been developed to enable and support collaborative action between farmers, foresters, other land managers, and supporting organisations to work together at a landscape, catchment, or national level. 

INRS is a competitive, project-based scheme. Collaborative groups can apply for capital and revenue funding to implement nature-based solutions at the appropriate scale, targeting action to enhance and sustainably manage our natural resources. This could be through enhancing habitats, enhancing carbon-rich soils, creating and managing woodland, implementing natural flood risk management, enhancing access and public engagement, or protecting landscape and historic features. 

Alongside the direct land management activities, projects are encouraged to include the following where appropriate: 

• training in new on-farm technologies, including recycling and renewable green energy technologies
• identifying diversification opportunities covering timber, horticulture and agriculture
• training and skills development, including traditional land management practices with heritage and/or cultural value
• bench marking, reporting and working towards net zero

Applying to INRS includes two phases:

• project development: new or existing groups can apply, outlining the project proposals and apply for the INRS project development grant
• project delivery: for applications which successfully make it to the project delivery phase, there will be available funding to be spent over three years

We are currently reviewing the scheme before opening our next application window; however, it will focus on projects designed to improve water quality. 

INRS is available to all farm businesses taking part in an eligible collaborative partnership, whether claiming SFS Universal Layer or not.

See Integrated Natural Resources Scheme for more information.

The Optional Layer of the Sustainable Farming Scheme (SFS) provides you with the opportunity to undertake additional activities to complement the Universal Actions. 

Unlike the Universal Layer, the Optional Layer does not apply to the whole farm. This allows you to select categories that help develop your personal objectives and long‑term business plans. 

The Optional Layer is designed to offer flexibility and choice, enabling you to adopt practices and improvements that are most relevant to your holding, whilst also helping us deliver against the sustainable land management (SLM) objectives.

Advanced Continuous Professional Development (CPD) to support you deliver and gain the most out of each Optional Action is available directly through Farming Connect.

Although the Optional Layer sits above the Universal Layer, it is not dependent on Universal Actions unless stipulated under a specific Optional Action. 

Scheme guidance including details on scoring, application processes, supporting evidence and variations to eligibility specific to each category will be published in advance of applications opening.

This chapter does not include reference to the Collaborative Layer, due to the very different nature of each Collaborative Action. These details will be included with the collaborative schemes as they are made available. 

Optional Action eligibility for farm businesses who have entered the SFS Universal Layer

All categories described in this booklet will be available to farm businesses which have entered the Universal Layer. 

If you are in the SFS Universal Layer your land and business eligibility will already have been verified before you apply for Optional Actions.

If an Optional Action relies on a Universal Action being completed beforehand, such as a requirement for Designated Sites Management Plan, the Optional application will only be made available once the relevant Universal Action has been completed.

For multiannual support only available to farm businesses who have entered the Universal Layer, such as enhanced habitat management, you will need to remain within the Universal layer for the duration of the grant award. 

Optional Action eligibility for farm businesses who have not entered the SFS Universal Layer

Some Optional Actions will remain accessible to farm businesses who have not entered the Universal Layer. Specific eligibility requirements for these actions will be outlined for non SFS participants in scheme guidance, as each category is made available.

While there is no dependency on the farm business to have entered the SFS  Universal Layer, the equivalent eligibility criteria apply, which are: 

• undertake agricultural or ancillary activities on agricultural land 
• have at least three hectares of eligible agricultural land in Wales or be able to demonstrate more than 550 standard labour hours
• have management control of the land for at least 10 months of the calendar year

If you apply for area based Optional Actions such as Temporary habitat you must meet the SFS Regulatory Baseline standards. 

Application process

You will be able to apply for most Optional Actions through a dashboard being developed on RPW Online. 

Applications may follow different processes depending on the category and type of support available, for example whether the action is based on standard costs, non-standard costs (quotes required) as part of the application, or following an on-farm support visit and agreed schedule of works.

Applications will be scored and assessed to ensure funds are used fairly and effectively.

Where availability of an Optional Action is restricted to farmers in the SFS Universal Layer , the application will not be available until you have applied for the Universal Layer for the first time. 

Appraisal and assessment

Applications may follow one of several appraisal approaches depending on the nature of the support, before you are offered a grant award for additional funding. 

Applications will be scored against a range of priorities specific to each category, and then ranked, with grant awards offered to the highest scoring applications first if demand is greater than the available budget. 

Within Chapter 2, we have explained where some actions will be available to all farmers whether you have entered the SFS Universal Layer or not, but that farmers participating in the SFS Universal Layer will be prioritised. As such, we will attribute additional points to farm businesses participating in the Universal Layer during this scoring process. 

Some actions, especially where there are non-standard payments, will require a full appraisal based on quotes, evidence and consideration of value for money, whilst others, will only be available after a schedule of works has been agreed. 

Consents, permits and licences 

In most instances, it will be your responsibility to ensure all consents, permits and licences have been granted where required, and that you are compliant with minimum standards and legislative requirements regarding the environment, hygiene, animal welfare and all relevant health and safety standards. 

Consents for certain activities such managing Sites of Special Scientific Interest will be obtained from NRW as part of the process to agree Designated Site Management Plans and Schedule of Works. Consents will also be considered as part of the process of agreeing woodland management and planting. Specific requirements around consents, permits and licenses will be included with the detailed guidance produced for each category when applications are available. 

Claims and verification

Claims must normally be submitted and paid within the financial year in which the supported activity is scheduled to occur. 

The evidence required for claim verification will depend on the appraisal method used and will be set out in the grant award letter. This may include photographic evidence, invoices, quotes or other supporting material.

Verification might be completed through desk‑based checks, photographic assessments, on‑farm in-situ visits, or the use of earth observation technology where appropriate. 

Additional capital item retention checks will be completed on a sample basis.

Where support includes capital works linked to a subsequent revenue payment, the revenue element will only be payable once the capital works have been verified as completed.

Most revenue payments for Optional Actions will be claimed through the Single Application Form (SAF). 

With multi-year area-based payments, you may be required to continue to submit any necessary information through the SAF in future years. 

Transfers of commitments

Commitments relating to non area‑based payments are not transferable to another business. However, multi-annual revenue payments may be transferred if a new claimant meets the ongoing management commitments associated with the Optional Action.

Inspections

Area based Optional Actions may be subject to verification by inspection through a risk‑based and random sampling approach. 

This approach aligns with the inspection strategy developed for the Universal Layer. 

Sanctions and penalties

Sanctions for Optional Actions will align with the broader strategy developed for Universal Actions, as we need to strike a balance in providing flexibility for farmers, and managing against the misuse of public funds.

For area‑based Optional Actions, Verifiable Standards will be developed and applied to determine the outcome of any breach of grant conditions. Any breaches to the SFS Regulatory Baseline will apply equally to the area based Optional Actions, whether or not you have entered the Universal Layer. 

For non‑area‑based actions, the level of difference between claimed and verified will determine any adjustments or penalties applied. However, you may be allowed to correct minor issues within an agreed timeframe without penalty. 

Furthermore, late claim provisions similar to those used for the SAF, will be introduced.

Claims will be rejected and applicants excluded from parts or all the scheme where artificiality or fraud is proven, reflecting the Welsh Government’s duty to ensure integrity in the use of public funds.

Obvious errors and exceptional circumstances

The provisions for obvious error and exceptional circumstances will apply within the Optional Layer, as they do in the Universal Layer. These provisions ensure that you are not unfairly penalised for genuine mistakes or events outside your control, supporting fairness and proportionality.

Appeals

The two-stage appeals process will be available should you disagree with a decision relating to a grant award under the Optional Layer. This provides a clear and transparent route for challenging decisions and ensuring the integrity of scheme administration.

Help and support

The Farm Liaison Service (FLS) and Farming Connect development officers are available to direct you to applicable advice and support. 

A new knowledge transfer programme begins on 1 April 2026. Farming Connect can provide essential advice and guidance to support you with the Universal, Optional and Collaborative Layers of the SFS, as well as providing a range of general learning opportunities. 

This can help you invest in your business by updating your skills and knowledge, adopting new technology, and boosting your confidence to engage with innovative practices or new opportunities.

Under UA6 Continuous Professional Development, you are required to undertake at least six hours of learning on sustainable land management. You may choose to undertake some or all your learning through Farming Connect, but you may also choose other independent learning providers.   

You are also required complete an element of health and safety learning, which must be completed via Farming Connect in the first year.

If you want to undertake  Advanced Continuous Professional Development through Farming Connect, a Personalised Development Plan may be required before participating further in the following range of activities (except for e-learning). Some are more technical and some are designed to encourage peer to peer learning, including:

• accredited training (including animal health and welfare workshops)
• action learning (Agrisgôp, Agri Academy)
• discussion groups
• e-learning
• masterclasses
• mentoring

Long‑term vision

Over time, the Optional Layer will evolve towards a more integrated whole‑farm approach. As participation in the Universal Layer increases and you gain more data and insight into your farm performance i.e. through benchmarking results, and opportunity mapping, we aim to be able to guide you more effectively towards Optional Actions that best support your business and environmental aims. 

The following categories are only available if you have entered the Universal Layer of the SFS: 

• sustainable production
• designated sites 
• habitat review (habitat management and creation of permanent habitats)
• infrastructure and equipment - biosecurity items

Optional Actions in the following categories will be available to all farm businesses even if they have not entered the Universal Layer of the SFS. Applications will be scored and assessed to ensure funds are used fairly and effectively, however, farmers participating in the Universal Layer will be prioritised. As such, we will attribute additional points to farm businesses participating in the Universal Layer during this scoring process. 

• capital: production and efficiency 
• capital: environment (including some habitat creation) 
• organic
• woodland management  
• woodland creation 
• temporary habitat
• small infrastructure 
• infrastructure and equipment - nutrient management items

Agriculture (Wales) Act 2023

Also referred to as ‘the Agriculture Act’: new Welsh legislation which provides Welsh Ministers with the legal powers to support agricultural activities in Wales. The act established the Sustainable Land Management objectives.

Basic Payment Scheme (BPS) 

The main current agricultural support scheme providing financial support to the farming industry.

Benchmarking

A mechanism for monitoring a set of Key Performance Indicators to enable farmers to make data driven management decisions. 

Biodiversity

The wide variety of plant, animal and microbial life (including variety of genetics and ecosystems) found throughout our environment. 

Categories (optional categories)

A set of Optional Actions which have been grouped together to make the application process efficient. 

Collaborative Actions

Collaborative Actions are where farmers can choose to work together and with others in a coordinated way to collectively deliver outcomes that cannot be delivered on a single farm scale, in exchange for being paid additional scheme payments. 

Continuous Professional Development (CPD)

An ongoing learning and development process to build skills and knowledge.

Dashboard 

An RPW Online view of the Universal Actions that will be applicable for each farm, together with the ability to update and confirm the completion of actions throughout the year.

Designated site management plan

A management plan between the farmer and NRW to improve the condition of designated sites such as SSSIs. 

Ecosystems 

The complex the complex relationships of plants, animals and micro-organisms within and between habitats, which support and regulate many environmental processes such as providing clean air, clean water, thriving biodiversity and the food we eat. 

Environmental Impact Assessment (EIA) regulations 

Regulations which are used to consider the effects of projects on the environment. 

FARMDATA+  

An online benchmarking tool delivered through Farming Connect.

Farming Connect 

Farming Connect is a Welsh Government-funded programme designed to provide support, guidance, and training to farmers and foresters in Wales.

Glastir/Habitat Scheme Wales (HSW)

Glastir is a now legacy agri-environment scheme which operated in parallel with the BPS until 2023, to fund actions such as habitat management and hedgerow creation. 

HSW started in 2024 and is designed as a scheme to support continuity of actions to maintain habitats between Glastir ending and the SFS becoming operational. The scheme consists of a farmland and Common land offer. The farmland support under HWS ended in 2025.

Green House Gas (GHG) Emissions

The measurement of gas emissions form livestock, farming systems and land inputs.

Habitat/semi-natural habitat

For the purposes of the scheme, habitat refers to the wide range of land types such as heathlands, flower rich meadows or wetlands. They each comprise a different array of plants and animals that depend on that habitat for their survival. ‘Semi-natural’ means habitats have been modified by human activity, but they still support plants and animals that occur naturally in the area. 

Habitat review

A process by which a field support officer will work with you to appraise the habitats on your farm and the opportunities for undertaking enhanced habitat management in the Optional Layer. 

Key Performance Indicators (KPIs)

A set of measurable targets (related to the business, livestock, environment or management practices) which can be used to make data driven management decisions. 

Natural Resources Wales (NRW)

A Welsh Government sponsored organisation responsible for advice and regulation regarding the natural resources of Wales. 

Net zero

Achieving a balance between the greenhouse gases emitted into the atmosphere and those removed from it, for example through carbon sequestration. 

Optional Actions

Optional Actions are where farmers can choose actions over and above the Universal Actions depending on what suits their farm business and ambitions the most, in exchange for being paid additional scheme payments.

Resilience

The ability to avoid and recover from disruptive shocks. For the purpose of the scheme, this refers mainly to the ability of a farm business to improve its resilience to potential negative shocks such as from market changes, climate change and animal and crop disease. 

Rural Payments Wales (RPW)

The division with the Welsh Government responsible for administering information and payments in relation to farming and land management.

Schedule of works 

Part of the designated site management plan which contains a set of consented management actions to improve the condition of designated sites such as SSSIs. Also, an output of the Habitat review.

Scheme requirements 

A set of regulatory and non-regulatory standards which underpin the scheme. 

Single Application Form (SAF)

The annual application process through which farmers apply and claim payment for area-based schemes. 

Site of Special Scientific Interest (SSSI)

A formal designation for areas of land or water considered to have special value for wildlife or geological features. SSSI are given statutory protection through specific legislation. 

SFS regulatory baseline

A set of existing regulations which apply specifically to the scheme. Part of the scheme requirements. 

Sustainability

Sustainability refers to the maintaining and conserving resources for future use, and to avoid depleting them. For the purposes of the scheme sustainability includes economic, environmental, cultural and social aspects. All of which needs to be balanced in order to protect future food production capacity. 

Sustainable Farming Scheme (SFS), also referred to as the ‘scheme’

The main support scheme for Welsh farmers from the Welsh Government from 2026 onwards.

Sustainable land management (SLM)

A holistic approach established in the Act to incorporate environmental, economic, cultural and social resources in such a way that the needs of the current generation are balanced with our obligations to future generations. 

Transition period 

The period between 2026 and 2029 where different elements of the Sustainable Farming Scheme are introduced.

Tree and hedgerow planting opportunity plan

A plan to capture opportunities for additional tree planting or hedgerow planting (or restoration) on each farm via RPW Online.

Universal Action (UA)

The scheme is structured of three layers. The foundation layer comprises of the Universal Actions which all farmers participating in the scheme will need to undertake, in exchange for being paid the Universal Baseline Payment. 

Universal Code

This sits above regulation and comprises a series of non-regulatory requirements which apply to every farmer in the scheme. It includes requirements designed to protect soil cover, biodiversity and habitats, trees, and landscape features. Part of the scheme requirements. 

10% scheme requirement 

Farms entering the scheme must have 10% of their land managed as habitat for environmental and wildlife benefits. Additional temporary habitat can be created if there is insufficient permanent habitat.