'No guarantee' of farm funding continuing after 2020, Plaid Cymru says

Last week, the government agreed to maintain current subsidies for three years after Brexit, until 2022
Last week, the government agreed to maintain current subsidies for three years after Brexit, until 2022

There is "no guarantee" of farm funding continuing after 2020, according to correspondence between Plaid Cymru and Westminster.

Shadow Cabinet Secretary for Rural Affairs Simon Thomas said that the UK Treasury had revealed in correspondence with him that structural and investment funds are only secured until 2020.

This appears to contradict Defra Secretary Michael Gove's announcement at the Oxford Farming Conference last week.

At the conference, he said the government plans to guarantee BPS payments until the 2022 election, and then there would be a "transitional period".

Mr Thomas said that it was "imperative" that an agreed common framework for agriculture and environmental matters was achieved.

He said it would allow farmers to be given certainty about the priorities for the sector and the finance that accompanied them.

Plaid Cymru Shadow Cabinet Secretary for Rural Affairs Simon Thomas said: “Last week, the Michael Gove said that funding for farmers would be guaranteed until beyond the next election, but the UK Government has revealed to me that there is no guarantee that CAP Pillar 1 payments will be sustained beyond 2020.

“This could leave a black hole worth hundreds of millions in the incomes of Welsh farmers. This will have a devastating impact on farmers, could lead to the closure of family farms, could drive up food prices, and cause great damage to the Welsh rural economy.

“It is crucial that funding for Welsh farmers is maintained after 2020. If it is subject to the Barnett Formula, like other public expenditure in Wales, then Welsh farmers will lose out. Wales cannot settle for a penny less of funding.”