BPS payments wait plunges Welsh farmers into crisis

Unpaid EU subsidies have plunged thousands of Welsh farmers and their suppliers into a severe cashflow crisis.

More than six weeks after the Basic Payment Scheme (BPS) payment window opened, one-third of farmers in Wales have yet to receive a penny of their subsidy – and the majority have not been paid their full entitlement.

According to one agent who acts on behalf of 450 farmers, like in England, it is the biggest claims that are stalling.

“Virtually all the small claimants we act for, those who are claiming less than £9,000, have been paid, but none of the bigger claimants,” said John Crimes, of agricultural consultants Cara Wales.

Mr Crimes described the implications for the farming sector as “horrific”, with farmers unable to pay their suppliers and contractors.

See also: Welsh BPS payment target looks fanciful

“It’s like dropping a stone into a pond, the ripple effect extends a long way,” he said.

“Fortunately the banks are being quite understanding and offering loans to the value of the BPS until it comes in or increasing overdrafts, but farmers have to request this.’’

One farmer awaiting payment is sheep and beef producer Richard Isaac. Last year he received his subsidy on the first day of the payment window.

Farmer Richard Issac © Debbie James

“We don’t know when we will get our money, and it is getting to the point where it is very serious,” said Mr Isaac, of Mynachdy Farm, near Pontypridd.

“Fortunately I have a very sympathetic bank manager but every week he asks me if I have heard when the money will be paid.”

Mr Isaac criticised the Welsh government for failing to communicate with farmers.

“There hasn’t been enough explanation – we don’t know why our application hasn’t been processed,’’ he said.

For those farmers who have been paid, the money is welcome.

Milk producer Dai Gravell received his payment in mid-December. As a First Milk supplier, he admits that receiving the subsidy at an early stage was critical.

“As a spring calver I have to wait until April to get paid half the money for my February milk so this money will be critical because there are major feed, vet and fertiliser bills to pay in February and March,” said Mr Gravell, of Muddlescwm Farm, Kidwelly.

“The subsidy will plug that hole, although it is a third down on last year’s payment and by 2019 it will be halved.”

Farmers had been warned since June that payments would be slow because of the introduction of the new flat-rate CAP scheme in Wales.

But the Farmers’ Union of Wales said this was of little consolation to farmers with bills to pay.

NFU Cymru is meeting with Wales’ deputy food and farming minister, Rebecca Evans, this week. Farm leaders will urge her to make outstanding payments “urgently”.

It is understood the minister will make a statement to the Assembly on the BPS issue this week.

The Welsh government insists its payment schedule meets published targets, with half of all claimants receiving about 80% of their BPS in the first week of December and two-thirds by the end of that month.

“Payments will continue to be paid as soon as possible and we remain on track to pay the vast majority of farmers early this year,’’ said a government spokesman.

“More complex cases will take longer and we will be writing to those farmers who have not been paid by the end of January to update them on progress and advise them when they are likely to receive payment.

“The final instalments of the part payments – 20% – will be made in April in line with our published target.”