The Welsh government has today (Tuesday, December 19) confirmed a total budget of £238 million to provide direct payments to farmers in 2024 at the same level provided over the past four years.
Making the announcement, Welsh rural affairs minister Lesley Griffiths said the direct payments funding had been secured “despite the reductions in farm support funding from the UK government over recent years”.
Griffiths said more than 97% of claimants have received their full or balance Basic Payment Scheme (BPS) payment.
“Over 15,800 Welsh farm businesses have received payments worth £71.2 million, in addition to £160 million paid as BPS advance payments since October 12,” she said.
“My officials will continue to work hard to process the outstanding BPS 2023 claims as soon as possible.”
Griffiths said the expects all but the “most complex cases” to be completed by June 30, 2024.
2024 budget and direct payments
The 2024 payment of BPS will serve as the index on which payments made during the transition to the Sustainable Farming Scheme (SFS) will be based, subject to Wales receiving “fair funding arrangements” from the UK government, Griffiths said.
“We have protected the BPS budget at £238 million for 2024, the same level as 2023, as we had planned. As the transition to life outside the EU, and beyond BPS, continues, the agriculture sector is undergoing significant changes.
“Support from the Welsh government will be focused on helping farmers to produce food in line with our sustainable land management objectives.”
Griffiths said the government’s support will help farmers and the supply chain to strengthen the resilience of food production in Wales, economically, socially and environmentally.
“We live in uncertain and challenging times, however, we can be certain about the need for change and this government’s steadfast commitment to supporting Welsh farmers to make it happen.
“We have listened to farmers and their representatives about the importance of providing an element of stability in the last year before the introduction of SFS.
“This is why I have prioritised maintaining the BPS ceiling at £238 million for 2024. Given the significant pressures across Welsh government budgets, this was extremely challenging.”
BPS
Griffiths said the Welsh government will continue to support the sector in a “managed transition” away from BPS from next year onwards.
“Unlike the UK government has done in England, we will not open and close schemes at random,” she said.
“In line with the announcement on BPS today, we will proceed in a predictable, reliable way to implement radical reform of farm support, for the benefit of Wales’ communities and natural environment.
“After more than a decade of the UK government’s policy of austerity, our funding settlement is not sufficient to respond to the extraordinary pressures Wales faces.”
Following years of poor UK economic performance and the “disastrous mini-budget” in 2022, Griffiths said the UK faces a cost of living crisis, high inflation and immense pressure on public services.
“In this context, the Welsh government budget is now worth £1.3 billion less in real terms than when it was set in 2021.
“The UK government has repeatedly refused to review the farm funding methodology and replace, in full, as promised, the funding Wales would have received had we remained in the European Union.
“The continued failure of the UK government to adjust funding levels to deal with rising costs, exacerbates the impact of their economic mismanagement on farmers in Wales.
“These challenges underline the importance of the need to transition to a new system of farm support which is fairer and more effectively promotes sustainable food production, improving both business performance and environmental outcomes.”
‘Difficult decisions’
Griffiths said, in making this draft budget, the Welsh government has had to take “incredibly difficult decisions”, the “starkest and most painful since devolution”.
“This has not been a year in which we have had positive choices to make about where we can target increased and additional investment,” she said.
“We have radically reshaped our budget so we can focus funding on the services which matter most to the people of Wales, to invest more in the NHS and to protect the core local government settlement which, in turn, funds schools, social services, social care and other vital everyday services we rely on.
“We have reshaped our budget in line with a set of guiding principles, to protect core, frontline public services as far as possible; to deliver the greatest benefit to households which are hardest hit; to prioritise jobs, wherever possible and to work, in partnership, with other public sector bodies to face this financial storm together.”
