Welsh BPS payments to remain unchanged for next two years

Welsh farming organisations have welcomed the announcement that basic payments will remain the same for farmers over the next two years.

Up to £238m will be paid in direct subsidies to about 16,000 Welsh farm businesses, matching the budgets of the previous three years.

Subject to availability, the BPS budget will continue to be provided at current levels in 2024, with a provisional budget of £238m.

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Farming unions welcomed the commitment from the Welsh government, saying it would provide much needed security to farm businesses facing soaring feed, fertiliser, fuel and energy costs, due in part to the war in Ukraine and trade friction resulting from Brexit.

However, the budget is smaller than Welsh agriculture would have received before the UK left the EU (about £337m/year).

Rural affairs minister Lesley Griffiths accused the Westminster government of refusing to review its farm funding methodology and replace in full what Wales would have received if the country had remained in the EU.

“Last year, the chancellor announced Wales would receive £252.19m for agricultural support in 2022-23 to replace EU Common Agricultural Policy funding, with Welsh farmers losing a further £106m, on top of the £137m of funding the Treasury did not provide the year before,” she said.

“The continued failure of the UK government to adjust funding levels to deal with rising costs exacerbates the effect of their economic mismanagement on Welsh farmers.”

Ms Griffiths said 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,” she added.

Union response

NFU Cymru president Aled Jones said news that the BPS budget would be maintained for the next two years provided much needed clarity and stability and would help to equip farmers for the challenges ahead.

Mr Jones said the BPS gives vital stability to farm businesses and is crucial in maintaining the supply of safe, high-quality and affordable food to all in society.

“As well as providing security to farming businesses, this announcement is also a boost for our rural businesses and communities, along with the Welsh language, as Welsh farms provide the economic, social and cultural foundation of our rural communities,” he added.