Welsh first minister shares farmer dismay at ‘Barnettisation’ of funding

A change to the mechanism for calculating funding for agriculture in Wales has caused major concerns in the farming community – concerns which have now been echoed by first minister Eluned Morgan.

The UK Treasury’s decision to “Barnettise” the block grant for each devolved nation – a calculation based on population rather than farm and rural characteristics – could see Wales’ proportion of total UK agricultural funding fall from about 9% to 5%.

See also: Welsh government welcomes removal of ring-fenced ag funding

This shift means agricultural support must compete with other priorities such as health and education, potentially impacting long-term funding and stability for farming.

The Farmers’ Union of Wales (FUW) has previously warned such “Barnettisation” of agricultural funding could equate to a drop of about 40% in funding for Welsh farming – worth around £150m a year.

Previously, EU funding for UK agriculture was allocated across the UK nations under the CAP formula, based on rural and farming criteria such as the size, number and nature of farms.

This resulted in 9.4% of the total UK agriculture budget coming to Wales when the UK was a member of the EU.

Welsh first minister Eluned Morgan (centre) with chancellor Rachel Reeves (left) and secretary of state for Wales, Jo Stevens © Zuma Press Inc/Alamy Stock Photo

Baroness Morgan expressed her concerns to the Welsh affairs committee in Westminster on Wednesday (12 February).

Responding to Welsh MP Henry Tufnell, who asked how the Welsh government felt about the UK government’s decision to move towards a Barnett-based formula for agriculture, Baroness Morgan said the Welsh government was “not very happy” with the announcement, noting that “it is a huge concern that that has been changed”.

She added that Wales has a higher proportion of farmers than other parts of the UK and the new funding formula “will not recognise that” going forward.

Barnettising the funding also fails to recognise the unique characteristics and needs of Welsh farms, the FUW said.

“At a time when Welsh farmers are expected to deliver an ever increasing range of sustainability and environmental objectives, while also producing food, there should be a return to the previous allocation formula, which better served the needs of the sector here in Wales,” said FUW president Ian Rickman.