# Controversial farm subsidy scheme receives billion-pound budget Welsh farmers join new sustainable agriculture program amid mixed reactions. - **Source:** [BBC News](https://brifing.si/source/647b890e-c85e-45b8-9588-ccfecdec4a99) - **Published:** 2026-07-20 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/dd71e43f-3eda-4e36-8395-6710a374951d ## New subsidy model launches Replacing post-Brexit agricultural support, Wales introduced the Sustainable Farming Scheme (SFS) requiring farmers to dedicate at least 10% of land as natural habitat. The environmentally-focused program's budget was announced at the Royal Welsh Agricultural Show opening, marking a shift towards greener practices. ## Mixed reactions from farmers Pembrokeshire farmer Caryl Davies welcomed the scheme's soil improvement potential, while others like Stephen Roberts from Denbigh argue the three-year budget can't offset rising costs. Retired auctioneer Alwyn Jones appreciates the budget certainty but notes inflation pressures. The phased payments aim to build confidence in long-term planning. ## Industry representatives respond NFU Cymru president Abi Reader praised the multi-year funding while noting it falls short of the EU's seven-year cycles. FUW's Ian Rickman highlighted how funding certainty until 2030 relieves family farms. Both acknowledged budget increases remain challenging given economic conditions, with farmers facing unprecedented input cost inflation. ## Environmental groups demand more Wildlife Trusts Wales' Rachel Sharp argues current funding won't meet climate and nature restoration targets, having campaigned to double the budget alongside RSPB and National Trust. They urge swift details on collaborative funding pots, while organic transition support begins this month - welcomed by Soil Association Cymru as progress for sustainable food systems. ## Program mechanics explained The SFS offers farmers various options from habitat management to organic conversion. Optional funding streams will allow tailored approaches, though full scheme details remain pending. The government announced initial organic farming support starting late July, seen as a positive step toward regenerative agriculture despite broader budget constraints. ## Long-term implications Analysts emphasize the SFS will shape Wales' rivers, wildlife, food security and climate resilience beyond just farming. While three-year certainty aids planning, greater resources are needed for systemic transformation. The scheme's success could model sustainable rural development, balancing productivity with environmental stewardship amid global agricultural policy shifts. ## Sources covering this story - https://www.bbc.co.uk/news/articles/cr7kn49y3vdo?at_medium=RSS&at_campaign=rss — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._