Labour and Plaid Cymru have voted down a Conservative call to scrap Wales’s Sustainable Farming Scheme, despite claims from opponents that it will cut livestock numbers, cost jobs and wipe millions off farm incomes.
The Welsh government’s own economic impact assessment, published on 30 September, projects that the scheme could lead to the loss of 56,000 livestock, more than 1,100 on-farm jobs, and £76.3 million in farm business income.
Critics argue this adds to the mounting pressures already faced by farmers, including soaring costs, what has been dubbed a “family farm tax,” and tighter regulation.
The Sustainable Farming Scheme (SFS) is the Welsh government’s flagship post-Brexit agricultural policy, designed to replace the EU’s Basic Payment Scheme.
Instead of direct subsidies, it offers payments to farmers for delivering environmental actions such as planting trees, improving soil health, enhancing biodiversity and cutting carbon emissions.
Ministers say the scheme will help Wales meet climate targets and protect nature while still supporting food production. Farming unions and opposition politicians, however, warn that the system could reduce farm output and pile further financial strain onto family farms.
The Welsh government insists the SFS is vital to ensure long-term sustainability, arguing that it will secure future farm payments while tackling both the climate and nature emergencies.
On Wednesday (8 October), the Conservatives tabled a debate in the Senedd calling for the SFS to be replaced with a new programme centred on food security and production. The motion was opposed by Labour and Plaid members, ensuring its defeat.
Welsh Conservative Shadow Cabinet Secretary for Rural Affairs, Samuel Kurtz, accused the Welsh government of ignoring the needs of food producers.
“Once again, it is only the Welsh Conservatives who are standing up for our farmers, supporting our food producers, and recognising the growing need to prioritise food security,” he said.
Kurtz said farmers were already struggling under multiple challenges, including the government’s “family farm tax,” ongoing bovine TB issues, and nitrate vulnerable zone (NVZ) regulations.
He argued that the new scheme risks compounding these pressures. “The last thing they need is a scheme that makes it even harder to farm, produce food, and earn a living,” he added.
“I was deeply disappointed that Labour and Plaid Cymru voted against our motion, offering no relief to struggling farmers who are already under considerable strain.”
