Wales farmers receive £152m advance under new scheme
Advance payments totalling £152 million have begun under Wales’ Sustainable Farming Scheme, boosting cash flow for rural farms.
Farmers across Wales have begun receiving more than £152 million in advance support payments as the Sustainable Farming Scheme launches. The Welsh Government says 90 percent of farms claiming under the scheme’s Universal Layer have already been paid, totalling £117.3 million.
A further £35.5 million has been released to 94 percent of farms claiming through the Basic Payment Scheme. Advance payments this year have risen from 70 percent to 80 percent of the expected annual support.
The increase follows the exceptionally dry summer that left many agricultural businesses struggling for cash flow. Rural communities in Mid and West Wales, where farming remains a cornerstone of the local economy, are expected to feel the impact most keenly.
“The payments reaching 90 percent of SFS claimants represented a positive start for the new scheme,” said Cabinet Minister for Rural Resilience and Sustainability Llyr Gruffydd. He added that farmers still awaiting funds should check their Rural Payments Wales Online accounts for any outstanding queries.
Remaining advance payments will be issued as individual claims are verified and confirmed. Balance payments are scheduled to begin in mid‑December, with the Welsh Government aiming to settle all but the most complex claims by the end of March 2027.
Farmers claiming under the Sustainable Farming Scheme must update their SFS Universal Dashboard via Rural Payments Wales Online before receiving the final balance. The new scheme replaces the previous EU‑derived support system and marks the first year of a Welsh‑run framework.
Additional measures introduced after the summer drought include an extended period for spreading slurry. Temporary adjustments have also been made to certain crop and habitat management requirements.
Grants are now available to support the installation of boreholes and water‑harvesting equipment. These steps aim to bolster resilience against future weather extremes and safeguard farm productivity.
Industry observers note that the advance payment model provides earlier certainty for budgeting and investment decisions. By receiving a larger proportion of their expected support up front, farms can better manage input costs and labour expenses.
The Welsh Government’s figures show that the scheme’s rollout is on track, with the majority of eligible farms already benefiting. Stakeholders are encouraged to keep their online records current to avoid delays in the final payment phase.
As the Sustainable Farming Scheme moves into its balance‑payment stage, attention will turn to the efficiency of claim verification and the speed of remaining disbursements.