The Welsh Government has announced that farming businesses in Wales will be able to access low-interest finance through the Sustainable Agriculture Loan Scheme (SALS), a new £5 million pilot programme launching on 01 July 2026. Delivered by the Development Bank of Wales, the scheme is intended to help farms invest in long-term resilience, sustainability and productivity at a time of rising input and energy costs.
Eligibility
Eligible businesses in Wales can apply for loans between £25,001 and £1 million, offered at a fixed interest rate of 3% and repayable over terms of up to 15 years. The scheme also includes an initial repayment holiday, with seasonal repayment options being considered to reflect farm cashflow patterns.
Loan Terms and Funding Uses
Funding can support projects, such as energy efficiency measures, renewable energy generation, waste and nutrient management, farm infrastructure, buildings, equipment, processing and storage. To qualify, applicants must undertake agricultural or ancillary activities on agricultural land in Wales and either farm at least three hectares of eligible land, or demonstrate more than 550 standard labour hours annually.
Complementing Existing Support
SALS will complement existing grants and the Sustainable Farming Scheme. Welsh Government says the scheme is designed to remove barriers created by upfront investment costs, while the Development Bank of Wales says it will provide practical, affordable support for farms seeking to reduce energy costs, improve productivity and transition towards lower-carbon agriculture.
The pilot will test demand during 2026/27 and may inform future support. For further information, click here.
This news article was written by George Dunn, TFA Chief Executive on 30 June 2026.
Related articles:
TFA Cymru News May June 2026 – Where Next for the Sustainable Farming Scheme Ministerial Roundtable?
Further Resources from the TFA:
TFA members can get expert one-to-one advice and guidance, by calling TFA head office on 0118 930 6130.
- Find out about TFA membership benefits and rewards
- Browse our Blog archive for the latest news, including farming policy updates
- Explore upcoming TFA events, including webinars, shows and regional meetings
Media Enquiries
For press and media enquiries about any of these stories, please contact Julia Meadows, TFA Communications and Events Coordinator by calling TFA head office on 0118 930 6130 or 07887 777157.
