Farming leaders said progress had been made and praised Irranca-Davies’s “commitment to collaboration”.
Victoria Bond, director of the County Land and Business Association (CLA) in Wales said “today’s updated SFS shows a shift in the right direction”.
Ian Rickman, president of the Farmers’ Union of Wales, said the announcement was the culmination of “intense” work over recent months.
“We must now ensure that the associated budget and payment methodology deliver real economic stability for our family farms in Wales as we face a backdrop of many other challenges,” he said.
Mr Rickman said recent months had involved “a huge amount of work” and the union’s ambition had been “to get to a scheme that’s accessible to all farmers”.
Wildlife Trusts Wales director Rachel Sharp said the announcement showed how farmers’ concerns could be addressed.
She said it would be critical to support the many farmers “who want to go beyond this if we are to see nature restored in Wales”.
Alexander Phillips, of WWF Cymru said the Welsh government needed to deliver an SFS that helped meet Wales’ 2030 targets around nature restoration and tree planting.
Conservative Shadow Secretary of State for Wales, Mims Davies, accused the Welsh government of confusing farmers.
“This latest saga is another example of the left hand not knowing what the right hand is doing.”
