£500m budget demand put to next Welsh government by NFU Cymru

NFU Cymru is urging the next Welsh government to commit to a £500m-plus annual farming budget ahead of the Senedd elections, warning the sector’s future depends on long-term financial backing.

With three weeks to go until voters head to the polls, the union has called for a ring-fenced, multi-year settlement to support agriculture and rural communities.

The call comes as political parties set out their priorities for the 2026 election campaign, with farming policy expected to be a key issue in rural constituencies where agriculture underpins local economies.

NFU Cymru argues that current agricultural spending has not kept pace with inflation for more than a decade, eroding the real value of support available to farm businesses.

The Welsh agriculture budget has remained broadly flat since replacing EU funding following Brexit, despite rising costs across the sector. When adjusted for inflation, the union says support should now exceed £500m annually to restore funding levels.

Speaking from his farm in the Conwy Valley, NFU Cymru deputy president Paul Williams said the sector needs certainty to plan for the future.

“Welsh agriculture needs the next Welsh government to commit to providing a ring-fenced, multi-annual budget,” he said.

Williams added that “an annual budget in excess of £500m is now needed” to bring support back in line with rising costs.

He said the bulk of funding should focus on improving stability, productivity and efficiency on farms.

The union also wants clarity on how future funding will be structured, backing the current 70:30 split between universal payments and optional or collaborative schemes under the Sustainable Farming Scheme, which is due to replace the Basic Payment Scheme.

NFU Cymru says maintaining this balance is key to providing stability for farm businesses while supporting targeted improvements in productivity and environmental delivery.

The pressure comes as farmers face rising input costs, volatile markets and ongoing changes to post-Brexit support schemes, leaving many businesses dealing with tighter margins and uncertainty over future income.

The call also mirrors wider concerns across the UK, with farming unions pushing for greater long-term certainty as new agricultural policies are rolled out.

However, any increase in agricultural spending would need to be balanced against wider pressures on the Welsh government budget and competing demands across public services.

Williams said a long-term funding commitment would be critical to underpinning the sector.

“By indexing the support budget to above £500m… and committing to a ring-fenced, multi-annual budget, the next Senedd and Welsh government can help secure the future of Welsh agriculture,” he said.

NFU Cymru argues that sustained investment will not only support farm businesses, but also help safeguard food production and rural economies across Wales.

The next Welsh government is expected to set out its approach to agricultural funding as part of its post-election policy programme, with the future structure of support likely to be a key issue for the sector.