In a pivotal moment for Welsh agriculture, farmers are stepping into a greener future with a groundbreaking post-Brexit subsidy scheme that promises to transform rural landscapes and farming practices.

The Sustainable Farming Scheme (SFS), launching in 2026, represents a dramatic shift from decades of EU-style subsidies, challenging farmers to become active environmental stewards while maintaining productive agricultural operations.

Under the new framework, farmers will receive payments contingent upon meeting 12 'universal actions', including maintaining hedgerows, reducing pesticide use, and participating in online sustainable farming courses. To qualify, farms must also actively manage at least 10% of their land as habitat - a requirement that has sparked both excitement and concern within the agricultural community.

Abi Reader, NFU Cymru's deputy president, calls this "a once in a generation change to farm support payments", acknowledging the scheme's complex journey. Earlier versions were deemed "unworkable", leading to significant protests that ultimately resulted in collaborative refinements.

Dairy farmer Gethin Hughes from Ceredigion represents the scheme's nuanced implementation. While he sees the payments as providing "a little bit of security" amid volatile milk prices, he recognizes that not all dairy farmers can easily meet the habitat management requirements. Some may need to reduce livestock or fundamentally restructure their operations.

Environmental experts like Arfon Williams from RSPB Cymru view the scheme as a critical step toward biodiversity preservation. While the entry-level payment helps farmers maintain existing habitats, Williams emphasizes the importance of developing additional funding layers to achieve meaningful ecological restoration.

As the January 2026 launch approaches, farmers face a pivotal choice: embrace the new sustainable model or see their traditional subsidies cut by 40%. Rural affairs secretary Huw Irranca-Davies sees this as a "landmark moment for Wales", with success measured by farmer participation and environmental impact.