Welsh farmers warn prime minister against budget cuts

Welsh farmers have sent an impassioned plea to prime minister Sir Keir Starmer, warning him of the dire consequences to the industry of any cuts to the farming budget.

Chancellor Rachel Reeve will deliver Labour’s first budget on Wednesday 30 October.

Support for agriculture is under scrutiny amid a £22bn shortfall in the public finances.

But campaign group Digon yw Digon, which translates to Enough is Enough, have told the PM that many Welsh family farms are already “on their knees” amid rising costs, poor weather and legacy cuts to farm support.

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The letter explains that Welsh farming families are typically working 60-hour weeks, with livestock farmers earning an average annual income of about £22,000, which equates to a fraction of the national living wage.

It also warns that speculation about potential reform to inheritance tax (IHT) relief for agricultural assets “would wipe out Welsh family farms in a single generation”.

Digon yw Digon notes that not only farmers, but tens of thousands more who work in the agricultural supply chain rely directly and indirectly on the Welsh farming budget.

But this has effectively “remained frozen” since 2014 and would be at least £125m higher per year, had it kept up with inflation.

The Westminster government decides the overall agricultural budget, but devolved administrations, including the Welsh government, have the authority to allocate funding based on their specific regional needs.

NFU Cymru has stated that an annual agricultural budget exceeding £500m (up from £420m currently) is needed in Wales to take account of inflation and to ensure that the Welsh farming industry’s ambitions for food, nature and climate can be met.

In addition, green groups such as the RSPB say a £600m annual budget is required to achieve the Welsh government’s environmental goals.  

‘Moral obligation’ to produce food

A spokesperson for Digon yw Digon said: “Welsh farmers have always been willing to adapt to change, but the upcoming Sustainable Farming Scheme needs to be accessible to all and properly funded with serious consideration for food production and food security in the UK.

“We have a moral obligation to produce food where we can because of climate change pressure in countries that may struggle to produce food in the future.”

A Welsh government spokesperson said: “We have this week confirmed that £157.8m has been paid to more than 15,500 Welsh farm businesses as Basic Payment Scheme 2024 advance payments are made.

“We recognise the very real challenges facing the sector and are in discussions with stakeholders and unions as we prepare our own draft Budget 2025-26.”