Farming leaders react to Welsh Government’s draft budget

All government departments  are set to receive increases in revenue and capital funding under the draft budget plans

It has been reported the Climate Change and Rural Affairs will receive an additional £36.35m (6.6 per cent) in revenue and £71.95m (31 per cent) in more capital funding. 

The Welsh Government also announced it would be maintaining the Basic Payment Scheme ceiling at £238m and providing an additional £5.5m resource and £14m capital funding for wider rural investment schemes.

NFU Cymru  President Mr Aled Jones said:  “From looking at the detail contained within the budget, it would appear that funding for the Basic Payment Scheme (BPS) 2025 has been maintained. 

"I know that this will come as welcome news to farmers across Wales.

“Over the last few weeks and months in our meetings with the First Minister and Deputy First Minister and MSs, we have been clear in emphasising how important it is for Welsh farming, the agri-food supply chain and rural communities that the BPS budget is maintained at the current level for 2025. 

"I am pleased that those calls appear to have been heeded by Welsh Government with the publication of this draft budget.

“At what is once again a very challenging time for the sector, the certainty and stability of an adequately funded BPS is crucial. 

"As I have said on many occasions, supporting Wales’ farmers through the BPS to the tune of £238 million annually, produced a gross output of £2.2bn in the same year, a return of almost £9 for every £1 given in government support.

“Rural investment support measures are also crucial to the sector and so it is positive that some of the cuts which were made last year to this budget line appear to have been partly restored. We now await confirmation from the Deputy First Minister as to how he proposes to spend the money which has been made available to him, including what investment support measures are going to be made available to the industry. These measures are crucial for the delivery of productivity and environmental improvements on farm.”

 FUW President, Ian Rickman added: "Welsh farmers are faced with growing demands to deliver an ever increasing range of sustainability and environmental objectives, while continuing to produce high quality food. 

"Considering the disproportionate cuts faced by the Welsh Rural Affairs budget over recent years, the Welsh Government’s decision to increase the Climate Change and Rural Affairs revenue budget by 6.6 per cent is one to be welcomed - and it is now vital the Welsh Government provides clarity on how this departmental funding will be distributed to support family farms and our rural communities.

"The FUW has been clear that as a minimum, the Welsh Government must safeguard Basic Payment Scheme payments for 2025-2026, particularly as we look ahead to the transition towards the Sustainable Farming Scheme. To this end, we do welcome the decision to maintain the BPS payment ceiling - which is crucial in providing a level of security for farmers in Wales as they face a plethora of other challenges and changes."