Extra £15m for rural affairs budget in Wales
© Adobe Stock An additional £15m has been allocated to the rural affairs budget in Wales for the next financial year, split between tackling river pollution (£5m) and rural investment schemes (£10m).
The Welsh government tabled its final budget for 2025-26 on Thursday 20 February.
With some £238m earmarked for the Basic Payment Scheme (BPS), and a further £108m for capital grants and revenue items, the extra funding will take the total rural budget to almost £366m – a significant jump from 2024-25 levels.
See also: Budget increase for Welsh agriculture welcomed
The final budget debate is set to take place on Tuesday 4 March in the Senedd.
The additional £10m to the Rural Investment Scheme is set to be targeted at the rural economy as part of the Sustainable Farming Scheme preparatory phase, before the new scheme is introduced in 2026.
The boost in cash aims to support farmers and the wider food supply chain to produce food sustainably, contribute to the Welsh government’s climate and nature objectives, and support rural communities.
A wide range of advice and financial support will also be made available under the spending plans.
In addition to the BPS, these include the Habitat Wales Scheme, Organic Support Payments, Woodland Creation and Restoration, and a range of small grants to help farmers buy new equipment, create and maintain environmental features, or develop their agricultural businesses.
Plaid Cymru rural affairs spokesman Llyr Gruffydd said: “While every additional penny helps, this small increase is merely a sticking plaster that won’t cover the gaping wound of lost funding.”
NFU Cymru president Aled Jones said the additional funding would help to offset some of the cuts made last year, but the additional money “must be used for the delivery of investment support to deliver productivity and environmental improvements on farm”.
Water quality
The additional £5m for water quality in rivers is focused on enforcement, with £3.5m earmarked as resource funding and £1.5m as capital, and will be allocated to the Climate Change and Rural Affairs main expenditure group.
Mr Jones added that while they await clarity on that budget line, farmers across Wales are already grappling with the current regulations, which are affecting farm business viability and farmer wellbeing.
“Moving forward, there needs to be a shift away from enforcement to an advice-led approach,” he said.
Explore more / Transition
During the series we follow our group of 16 Transition Farmers through the challenges and opportunities as they seek to improve their farm businesses.
Transition is an independent editorial initiative supported by our UK-wide network of partners, who have made it possible to bring you this series.
Visit the Transition content hub to find out more.
