Shropshire Farming Talk: Sustainable Farming Scheme final consultation

The consultation documents offer us much more detailed insight into the scheme and how the Government propose to transition away from BPS.

We have summarised some of the main points of the consultation, but bear in mind that these are still subject to change. The consultation is open for comments until March 7, 2024.

To read the full details and put your views forward go to Sustainable Farming Scheme at GOV.WALES

It is proposed to have a transition period between 2025 and 2029 which will see farmers gradually move from BPS to the new SFS. In this transition period farmers can chose to continue with the BPS payments, at a decreasing rate each year, or move to SFS.

In 2025 the SFS Universal Actions will be open for applications and farmers will need to carry out all these actions to receive the Universal Baseline Payment. Further Optional and Collaborative Actions will be introduced between 2025 and 2029.

Some examples of the Universal Actions include:

1. 6 hours CPD each year

2. Benchmarking – an annual self assessment which will need entering into a Welsh Gov website annually

3. Soil test a minimum of 20% of your farm each year

4. Ponds – all farms over 80ha should have at least two ponds or scrapes totalling 2000m² and all farms under 80ha should have at least to ponds or scrapes totalling 1000m².

There are many more Universal Actions and farmers will need to comply with all of them that apply to their farm to get the Universal Baseline Payment.

The Scheme Rules will also apply to all farmers and include the requirement that at least 10 per cent of each farm should be actively managed as habitat (this includes temporary habitat such as mixed leys), and at least 10 per cent of each farm should be tree cover.

Broadleaf woodland can count towards both 10 per cent trees and 10 per cent habitat, but conifer woodland only counts towards 10 per cent habitat target.

There will be allowances made for land unsuitable for tree planting, such as SSSIs, or where tenancy agreements do not allow tenants to plant trees.

The May 15 deadline will remain and there will be a SAF-style form to submit every year to claim the payment.

In 2024, the BPS scheme will stay the same, although we are still awaiting to hear the budget to know how much the payment will be. The amount of money available to farmers under SFS scheme is also unknown.

In 2025, farmers can chose to either stay with the BPS payments up until 2029 or move to SFS. Once you’ve moved to SFS you cannot return to the BPS.

a. If you move to SFS you will get paid for the Universal Actions plus a Stability Payment which will ensure your SFS payment equals what you would have received if you’d stayed in BPS.

b. If you stay in BPS your payments will reduce each year as below. You need to have a valid 2024 BPS claim to continue with BPS in 2025.

There are also other grant schemes now available to farmers including the Yard Coverings Grant, Small grants for double fencing and other boundary works, the Nutrient Management Investment Scheme for muck stores and more, and new schemes due from 2025 will include the Animal Health and Improvement Cycle, Integrated Natural Resources Scheme and the National Peatland Action Programme.

If you’d like to know more or would like assistance in the move from BPS to SFS please do not hesitate to contact me.

Amy Thomas, from Roger Parry & Partner’s Welshpool office.