The Welsh government has today (Wednesday, July 1) launched a new £5 million pilot scheme that will offer "affordable, long-term finance" to farmers who are looking to "invest in sustainability and productivity".

Government officials stated that the Sustainable Agriculture Loan Scheme (SALS) will offer fixed-rate loans at 3%, repayable over up to 15 years.

The scheme will reportedly allow eligible farm businesses to borrow between £25,001 to £1 million to fund improvements in energy effiency, renewable energy generation and waste management.

In addition to this, the government outlined that SALS funding can also go towards the purchasing of land and new equipment or the construction of farm buildings.

The funding for this one-year pilot scheme will be managed by the Development Bank of Wales.

Government

The Welsh government noted that SALS is designed around "the practical realities facing Welsh farms, including rising input costs and the need to invest in long-term resilience".

Speaking about the scheme, the 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," the minister added.

Development Bank of Wales

The chief executive of the Development Bank of Wales, Giles Thorley also commented on the launch of the scheme.

He 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," Thorley commented.

Eligibility

To be eligible, the Welsh government stated that farm businesses must undertake "agricultural or ancillary activities" on farmland in Wales and either farm at least 3ha of eligible land or demonstrate 550 standard labour hours annually.

According to government officials, seasonal payment options are also being considered "to reflect agricultural cashflow patterns".

Applications for SALS can be submitted through the 'Agriculture' tab on the Development Bank of Wales' website.