A £40m scheme will be available to Welsh farmers to help them reduce their carbon emissions and to improve their resilience and competitiveness, including through diversification.
A small capital grants scheme for farmers was a commitment in 'Taking Wales Forward', the Welsh Government's programme for government for the next five years.
The scheme, which is being part-funded from the Welsh Government’s Rural Development Programme, has been announced as part of the Welsh Government’s 2017-18 final Budget.
The Welsh Government is investing £20m in the scheme which will be co-financed by the Rural Development Programme.
It will distribute financial support of up to £12,000 at a 40% grant rate over a four-year period. Farmers across Wales will be able to invest in around 80 items linked to: Animal health, genetics and performance; Crop management; Energy efficiency; Resource efficiency and ICT.
'Boost for Welsh farming'
Cabinet Secretary for Environment and Rural Affairs, Lesley Griffiths, said the money is 'very much' an investment in farmers which will benefit Wales as a whole.
She said: “It will enable our farmers to operate in a more efficient and environmentally-friendly way and make their businesses more competitive.
“This is undoubtedly a boost for Welsh farming at a time when there is a lot of uncertainty about what the future holds following the UK’s decision to leave the EU. The new support I am announcing today will be of considerable assistance as our farmers begin to consider how best to shape their businesses to thrive in a post-Brexit world.
“A focus on early and effective business planning is vitally important and support with this is available from a number of quarters including our own Farming Connect programme, the benefits of which have been enjoyed by many farmers in Wales over recent years.”
'Key lobbying aim'
NFU Cymru has welcomed the announcement, saying the small grant scheme to support farmer investment in the latest technologies, equipment and innovations has been a key lobbying aim for NFU Cymru.
“We are pleased that Welsh Government has recognised the need for a small grants scheme to compliment the sustainable production grant scheme which targets larger projects – this will allow many more farmers in Wales to make on-farm investments that improve business and environmental performance.
“At this stage we do not know the operational detail of the scheme which is expected to open in April 2017. It is vital that the scheme is easily accessible and clearly communicated to the industry with an application process that is straightforward and user-friendly.”
Concluding Mr James said: “RDP funds in Wales have a very significant contribution to make to the vitality of farm businesses which, in turn, do so much to support the economic, social, cultural and environmental well-being of rural Wales.
“NFU Cymru is clear that the RDP should be used to best effect to prepare the farming industry for the changes ahead and measures that support the development of farm businesses are a key way to achieve this.”
