NFU Cymru Urges Welsh Government to Adjust Farming Scheme

NFU Cymru has asked the Welsh government to revise the Sustainable Farming Scheme (SFS) to provide greater support for dairy farmers. The scheme is currently used by half of the sector and is described by the farmers’ organisation as a useful tool.

The Welsh dairy industry contributes £929m to the economy, according to NFU Cymru. The organisation said the sector was facing increased financial pressure as winter approached, although milk prices had improved over the past year and had risen each month.

Higher prices for services needed to operate farms have added to producers’ costs. NFU Cymru attributed increases in fuel and fertiliser prices to global instability. The Agriculture and Horticulture Development Board reported that diesel was 50% more expensive than a year earlier.

Winter feed costs have also become a concern. A hot, dry summer reduced fodder supplies, and many farmers used part of their normal winter reserves. As a result, forage stocks are lower than farmers would usually expect at this point in the year.

Ammonium nitrate, which is widely used on Welsh grassland, had risen by about 20% since February 2026, according to figures cited by the organisation. The additional expense comes alongside the need to replace depleted feed supplies before winter.

Martin Griffiths, vice-chair of NFU Cymru’s Dairy Board, said dairy businesses needed to remain profitable and capable of supporting themselves for the sector to continue. He said the resilience of Welsh dairy farming was being weakened as farmers tried to manage already narrow margins. “In some instances, our farmers are supplying milk below the cost of production – they are operating on a day-to-day loss,” he said.

NFU Cymru highlighted the cost pressures at this year’s Welsh Dairy Show, held on Tuesday, October 20. The organisation’s request for changes to the SFS was made in the context of the sector’s higher input costs and reduced forage availability.