Welsh Government launch £5m pilot loan scheme to support farming businesses

The Sustainable Agriculture Loan Scheme is being provided via the Development Bank of Wales

A £5m pilot loan scheme to support Welsh farming businesses to drive productivity and boost sustainability has been launched.

The Sustainable Agriculture Loan Scheme (SALS) from the Welsh Government offers fixed-rate loans at 3% interest with capital repayable up to 15 years.

Eligible farm businesses can borrow between £25,001 and £1m to fund improvements in energy efficiency, renewable energy generation, waste management, land and buildings, and new equipment.

The one-year pilot scheme, being delivered by via the Welsh Government’s investment bank 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.

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.

Cabinet Minister for Rural Resilience and Sustainability, Llyr Gruffydd, 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 support the agriculture

sector in a way that underpins

the long-term sustainability of farm 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.”