The Welsh Government has launched a £5m pilot loan scheme to support farming businesses in boosting productivity and sustainability. The Sustainable Agriculture Loan Scheme (SALS), delivered through the Development Bank of Wales, offers fixed-rate loans at 3% interest with capital repayable over up to 15 years.
Loan Details and Eligibility
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 is designed to test market demand and address practical realities facing Welsh farms, including rising input and energy costs and the need for long-term resilience.
To qualify, 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 being considered to reflect agricultural cashflow patterns.
Government and Bank Support
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, added: “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.”
