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4.43. In 2024, the Rural Development Programme (RDP) pillar of the Common Agricultural Policy (CAP) schemes was replaced by rural investment schemes such as the Habitat Wales Scheme (replacing the Glastir land management scheme) and the Organic Support Scheme, as interim measures, (...).

4.42. Under the Sustainable Farming Scheme (SFS), all participating farmers will be required to complete a set of mandatory "universal actions" to receive a Universal Baseline Payment. (...). In addition, the Welsh Government is exploring the use of a "natural capital approach" to recognize and potentially reward the broader social value of outcomes delivered through universal and non-compulsory actions, by assessing the monetary value of benefits derived from the natural environment. (...).

4.41. The Act establishes the Sustainable Land Management (SLM) framework, which sets out four key objectives: produce food sustainably, mitigate and adapt to climate change, maintain and enhance ecosystem resilience, and conserve and enhance the countryside and cultural resources. This framework underpins the future Sustainable Farming Scheme (SFS) – Wales' flagship agricultural support programme – expected to replace the EU Common Agricultural Policy (CAP) system of support for farmers.

4.40. Wales is also transitioning from EU Common Agricultural Policy (CAP)-type support to a sustainability-based system. The Agriculture (Wales) Act 2023 established a new legal framework following the UK's withdrawal from the EU. It repeals and replaces elements of retained EU law, empowering Welsh authorities to provide agricultural support tailored to Wales' priorities, namely sustainable land management, agricultural resilience, and food production. All new agricultural policies must now align with the sustainability principles established under the Act.

4.37. Other key schemes under which support is provided are the Young Farmer Payment, Greening payments, Less Favoured Area Support Scheme (LFASS) , the 2023 Agricultural Floodbank Repair Grant Scheme , the Scottish Suckler Beef Support Scheme (SSBSS), and the Scottish Upland Sheep Support Scheme (SUSSS), with the latter two providing coupled support (...).

4.36. Since 2022, transitional assistance under Preparing for Sustainable Farming (PSF) is provided to help businesses to prepare for the new support framework. PSF assistance includes: financial support for farmers and crofters to claim support towards the cost of soil analysis, GBP 500 towards having a carbon audit performed; and up to a maximum of GBP 1,250 over two years to deliver a list of animal health and welfare measures. (...).

4.34. Scotland's new agricultural support system is divided into four tiers :
i. Tier 1 – Base Level Direct Payment: a universal entry-level payment for active farmers who meet minimum essential standards in sustainable farming, environmental protection, animal welfare, and fair work. Existing cross-compliance conditions are retained as a minimum requirement. (...).
ii. Tier 2 – Enhanced Level Direct Payment: a universal top-up to the base payment for farmers meeting base requirements and undertaking additional actions benefiting nature and climate. Existing cross-compliance conditions are retained as a minimum requirement. This payment is scheduled for introduction in 2026.
iii. Tier 3 – Elective Payment: targeted, criteria-based payments (competitive or otherwise) for specific actions on habitats, species, and sustainable business practices aligned with the Vision for Agriculture. (...).

4.32. (...). A "Whole Farm Plan" has also been introduced as a new requirement for receiving Basic Payment Scheme (BPS) support or benefiting from new support schemes being introduced from 2025. [26]. [26] The Whole Farm Plan is a way of measuring the efficiency of current agricultural practices and identifying opportunities to become more efficient, reduce costs, cut emissions, and improve biodiversity. Scottish Government, Whole Farm Plan quick guide.

4.30. Following the UK's withdrawal from the EU, the Scottish Government committed to a five year period (2019–2024) of "stability and simplicity" to maintain policy continuity for farmers. (...). The Vision for Scottish Agriculture sets out Scotland's ambition to become a global leader in sustainable and regenerative agriculture.

Table 4.4 Farming budget breakdown for the combined period FY2024/2025 and FY2025/2026 in GBP million:
Scheme: (...); Sustainable Farming Incentive (SFI); (...); Farming grants (one-off payments to help improve the environment or increase productivity); (...).
FY2024/2025 and FY2025/2026: (...); 1,050; (...); 350; (...).