NFU Cymru reaction to yesterday’s BPS Statement

Yesterday’s statement by the Deputy Minister brings to an end a period of uncertainty for the industry with regards to how the Basic Payment Scheme (BPS) will be implemented in Wales. Individual farming businesses across Wales will now be considering how the indicative payment rates will impact on their farm business income.

The Deputy Minister has decided to implement a flat rate payment by 2019, coupled with a redistributive payment covering the first 54 hectares of each claim.

There are winners and losers as a result of yesterday’s decision. Whilst this was inevitable in the move away from the historic basis of payment, unfortunately, by adopting a system that is not based on differential payment rates, the level of disruption across the industry is greater than it could have been.

NFU Cymru President Stephen James said yesterday, “Today’s announcement will please some of our members who will see this as the most suitable of the realistic options left remaining to Welsh Government. Others will naturally be deeply concerned at the impact this decision will have on their business and will fear for how they will be able to adapt their business to significant changes in EU support payments.”

Mr James was keen to point out the important role the Wales Rural Development Programme (RDP) has to work in a complementary way to the BPS. He said “NFU Cymru has consistently highlighted the importance of the CAP in underpinning food production, now that the decision has been made on how Pillar One payments will be implemented it is absolutely crucial that Welsh Government considers how the Wales RDP is taken forward.

“We look to schemes being rolled out that support productive agriculture and must support the sectors and areas of Wales most vulnerable as a result of the transition to an area based payment regime.”

With all farming sectors currently suffering as a result of depressed market prices cash flow is a major concern for farmers the length and breadth of Wales and Mr James stressed the need for timely payments in December.

“Following today's decision we look to the Deputy Minister to ensure that resources are put in place so that Welsh Government is in a position to make significant part payments to the majority of farmers this December. In deciding not to offer an extension to the Single Application Form deadline in May the Deputy Minister stressed that the decision had been made so as not to delay the start of payments. We will be meeting the Deputy Minister today where we will seek assurance that the Welsh Government will stick to this commitment.

Mr James concluded, “We will also use the meeting to press for the Deputy Minister to carry out a remapping exercise across the whole of Wales, mapping Wales’ agricultural land on the basis of the productive potential of the land. The majority of our members remain firmly of the view that payment rates should be differentiated on that basis and carrying out this exercise would allow Wales to consider introducing this system when the EU regulations are next reviewed.”