The £238 million budget mirrors the level of BPS support provided to farmers in Wales over the previous four years.
Concerns
However, the union has concerns over the level of cuts to the wider Rural Affairs budget and the implications this may have to delivering on shared ambitions for food, nature, climate, the economy and communities.
NFU Cymru President Aled Jones said: “NFU Cymru very much welcomes today’s announcement from the Minister for Rural Affairs Lesley Griffiths MS that BPS payments to the industry for 2024 will be maintained at current levels. As a union, we have stressed to Welsh Government that the BPS provides vital stability to farm businesses and is crucial in maintaining the supply of safe, high quality and affordable food to all in society. With costs on farm some 40% higher than they were in 2020, the BPS is as important as it has ever been in providing stability to all farming sectors.
“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 towns and villages across Wales. In 2022, farming delivered a gross output of £2.1 billion pounds. We can say confidently, therefore, there is a nine to one return for every BPS pound invested in Welsh farming. By any measure farming delivers excellent value for money.
Challenges and uncertainty
For just 2% of the overall Welsh Government budget, farming delivers all of this....⤵️
— NFU Cymru 🚜 (@NFUCymru) December 14, 2023
Investing in agriculture means Welsh farmers can continue to deliver multiple benefits for society. All while providing safe, high quality, affordable food for the nation 🏴 pic.twitter.com/XldjbrB4Fz
“With Welsh Government currently consulting on its final proposals for the Sustainable Farming Scheme (SFS) that will begin in 2025, significant challenges and uncertainty lie ahead, which is why today’s announcement providing some much-needed stability for 2024 is to be welcomed. NFU Cymru has long been clear that a stable and well-planned transition from the current CAP legacy schemes to the SFS is essential.
“Today’s news comes in the context of wider cuts to the Rural Affairs budget. NFU Cymru fully recognises the inflationary challenges that Welsh Government faces at this time. Whilst we are pleased that today’s budget announcement prioritises delivery of funding to farmers on the ground via the BPS, clearly a cut to the overall Rural Affairs budget is concerning and does have implications for the delivery of programmes within the Minister’s portfolio. We are urgently seeking more details from government about how these cuts will impact the sector.
“NFU Cymru has long been clear that a budget is needed for farming that matches the scale of our shared ambitions for food, nature, climate, the economy and our communities.”