Welsh farming businesses will be able to access affordable
finance to modernise their operations and cut carbon emissions,
under a new loan scheme to be launched by the Welsh Government
and delivered by the Development Bank of Wales later this
year.
The Sustainable Agriculture Loan Scheme (SALS) will offer
incentivised loans at a fixed 3% interest rate, repayable over up
to 15 years, to help small and medium-sized farms invest in
energy efficiency, waste management and productivity
improvements. Up to £5 million will be available during the
2026/27 financial year, with the potential to extend the
scheme depending on demand.
Farms will be able to borrow between £25,000 and £1 million per
project. A six-month repayment holiday at the start of the loan
gives businesses time to see the benefits of their investment
before repayments begin. Seasonal payment options are also being
considered.
SALS makes a clear policy choice: public finance should be used
as a repayable, targeted tool to drive sustainable farming
practices — complementing existing Welsh Government grants.
Deputy First Minister with responsibility for Climate Change and
Rural Affairs, Huw Irranca-Davies, said:
“I'm pleased that we're able to work with the
Development Bank of Wales on this new scheme which will be
another way of supporting Welsh farming businesses to
modernise and remain financially sustainable.”
Giles Thorley is Chief Executive of the Development Bank of
Wales. He said
“Supporting farm businesses with patient and flexible funding
packages is critical at a time of much transition in the sector.
We look forward to working closely with Welsh farmers to support
new projects enabling them to both ‘invest to save' and enhance
their future sustainable farming delivery.”
The scheme will be aligned to the Wales's Sustainable Land
Management duties as well as working in a complementary way
with the roll out of the Sustainable Farming Scheme.
The pilot will initially run for 12 months.
Further information, and the opportunity to express your
interest, is available from the Development Bank of Wales.
