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Welsh farming businesses can apply for loans of between
£25,001 and £1 million from 1 July 2026
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The scheme offers a fixed interest rate of 3%, with a
repayment holiday and terms of up to 15 years
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Up to £5 million is available in 2026/27 to support energy
efficiency, renewable energy and productivity improvements
Welsh farming businesses will be able to access affordable,
long-term finance to invest in sustainability and productivity
through a new £5 million pilot scheme launching on 1 July
2026.
The Sustainable Agriculture Loan Scheme (SALS) will offer
fixed-rate loans at 3% interest, repayable over up to 15 years.
Eligible farm businesses in Wales can borrow between £25,001 and
£1 million to fund improvements in energy efficiency, renewable
energy generation, waste management, land and buildings, and new
equipment.
The one-year pilot scheme delivered by the Development Bank of
Wales will test market demand and is designed around the
practical realities facing Welsh farms including rising input and
energy costs and the need to invest in long-term
resilience.
Speaking ahead of the NFU Sustainable Farming Conference, the
Cabinet Minister for Rural Resilience and Sustainability, , said: "Welsh farmers
are ambitious and forward-thinking, but the up-front cost of
investing in a more sustainable, resilient future can be a real
barrier.
"This scheme reflects our commitment to supportthe agriculture
sector in a way thatunderpinsthe long-term sustainability offarm
businesses and promotes innovation and growth,
Giles Thorley, Chief Executive of the Development Bank of Wales,
said:
"Rural Wales is full of ambitious businesses looking to invest,
adapt and build long-term resilience, but access to the right
kind of finance has often been a challenge.
"The Sustainable Agriculture Loan Scheme is designed to provide
practical, affordable support for on-farm projects looking to
support improvements in productivity, reduce energy costs and
invest in more sustainable operations.
"This is about helping Welsh farms to invest for the long term
while supporting the wider rural economy, local supply chains and
the transition to lower-carbon agriculture."
To be eligible, businesses 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. Seasonal repayment
options are also being considered to reflect agricultural
cashflow patterns.
SALS supports the Welsh Government's commitments to sustainable
land management, decarbonisation and stronger rural communities.
Apply here: Sustainable Agriculture
Loan Scheme - Dev Bank
Notes to editors
The Development Bank of Wales is a public finance institution
owned by the Welsh Government. Established in 2017, it has £2
billion in funds under management and has invested over £1
billion in more than 5,000 Welsh businesses. This investment has
supported over 55,000 jobs and generated more than £5.8 billion
in economic value.
