The Welsh government has today (Thursday, December 15) announced a total budget of £238 million for direct payments to farmers in 2023.
Minister for Rural Affairs, Lesley Griffiths, also confirmed that the Basic Payment Scheme (BPS) will continue to provide at current levels in 2024 with a provisional allocation of £238 million.
“The agriculture sector is facing many challenges. With the immense challenges of record inflation and the detrimental impacts from trade deals, with the former UK Environment Secretary describing one of these as ‘not very good’, I know this is a difficult time,” Griffiths said.
“The UK government has continually refused to review the farm funding methodology and replace, in full, the funding Wales would have received had we remained in the European Union.
“Last year, the Chancellor announced Wales would receive £252.19 million for agricultural support in 2022/23 to replace EU Common Agricultural Policy funding, with Welsh farmers losing a further £106 million, on top of the £137 million of funding the Treasury did not provide the year before.
“The continued failure of the UK Government to adjust funding levels to deal with rising costs exacerbates the impact of their economic mismanagement on Welsh farmers.
“The challenges the sector faces highlight even more the importance of transitioning to a new system of farm support which is fairer and which will support our farmers in the sustainable production of food.
“That is our aim with the Sustainable Farming Scheme which will come in from 2025.”
NFU Cymru
The National Farmers’ Union of Wales (NFU Cymru) has said it “warmly welcomed” the announcement from the minister regarding the BPS payments.
The union said it was grateful that the £238 million mirrors the level of support provided to farmers in Wales over the previous three years.
President of NFU Cymru, Aled Jones, said: “NFU Cymru very much welcomes today’s announcement from the Minister for Rural Affairs that BPS payments to the industry in 2023 and 2024, subject to budget availability, will be maintained at current levels.
“As a union, we have stressed to Welsh government that the BPS provides vital stability to farm businesses and is crucial in maintaining the supply of safe, high quality and affordable food to all in society.
“The BPS is as important as it has ever been in the context of the unprecedented inflationary pressures being experienced by all farming sectors at present.
“The year ahead presents continued challenges for food and farming. We are dealing with significant hikes to input costs arising, in part, from the war in Ukraine, trade friction resulting from our departure from the EU and trade deals with some major agricultural exporting nations are expected to come in to effect.
“Today’s announcement from the minister is, therefore, a welcome assurance to the nation’s farmers.”
