Welsh farms to access low-interest loans for sustainable investment

30 Jun 2026 10:43 AM

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.

• Welsh farming businesses can apply for loans of between £25,001 and £1 million from 1 July 2026
• The scheme offers a fixed interest rate of 3%, with a repayment holiday and terms of up to 15 years
• Up to £5 million is available in 2026/27 to support energy efficiency, renewable energy and productivity improvements

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, Llyr Gruffydd, yesterday 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, yesterday 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