'We’re not happy': Wales' First Minister concerned over ag funding change

The new funding formula 'will not recognise' the higher proportion of farmers in Wales compared to the rest of the UK

Wales' First Minister has repeated concerns voiced by farm leaders over changes to future funding support rules for Welsh agriculture.

Eluned Morgan's comments came as she was questioned by MPs during a session of Westminster’s Welsh Affairs Committee on Wednesday 12 February.

As part of the session, Henry Tufnell MP questioned her regarding the UK government’s decision to move towards a Barnett formula-based allocation of ag funding for Wales, rather than the previous needs-based formula.

Responding to it, the First Minister claimed the Welsh government was 'not very happy' with the announcement, noting that "it is a huge concern that has been changed."

The First Minister said Wales has a higher proportion of farmers than other parts of the UK and the new funding formula 'will not recognise that' going forward.

Previously, EU funding for UK agriculture was allocated across the UK nations under the Common Agricultural Policy (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.

The UK Treasury’s decision in October 2024 to ‘Barnettise’ the block grant for each devolved nation, a calculation based on population rather than farm and rural characteristics, could however see Wales’ proportion of total UK agricultural funding fall from 9% to 5%.

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

Ian Rickman, FUW president said she welcomed the First Minister's concern regarding the 'significant consequences' Barnettisation could have on future farm funding in Wales.

"The FUW has long warned this change in funding fails to recognise the unique characteristics and needs of Wales' farms," Mr Rickman said.

"The move towards a population based model could see a drastic fall in Welsh farming's funding from over 9% of the UK's allocation to 5%.

"At a time when farmers are expected to deliver a 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 in Wales.”