Farmers have welcomed the Welsh government's announcement that the 2022 direct payment budget will be maintained at 2020 and 2021 levels, as criticism continues of the UK's government's decision to slash the agriculture budget.
The total direct payment ceiling of £238 million will be provided this year, matching the budgets in 2020 and 2021, the Welsh government recently announced.
Minister for Rural Affairs Lesley Griffiths said she had 'prioritised support' for the sector to help with the challenges facing farmers as a result of Brexit and the pandemic.
The Farmers’ Union of Wales (FUW) has today welcomed the news, saying it "recognises the concerns farmers have raised in terms of the importance of this funding".
The union's president, Glyn Roberts said: “The minister’s decision recognises the importance of the direct support budget not only to the 16,000 or so farm businesses that rely on it, but also the many more tens of thousands of businesses that benefit from these payments.”
Mr Roberts said that hundreds of thousands of Welsh people employed directly and indirectly in the agricultural and food supply chains would benefit from the funding.
But he added that he shared the Welsh government’s frustration that the UK government’s promise to replace EU funding in full had been broken.
Welsh farmers have already lost £137m as a result of the autumn 2020 spending review, and in November 2021, it was announced that the budget for agriculture would be cut by a further £106m compared with what was promised.
“Farming budgets in the EU are not facing such cuts, yet we were promised that no cuts would result from Brexit," Mr Roberts said.
"We share the Welsh government’s frustrations and concerns - particularly in light of the rising barriers for our food exports to the EU and the threat posed by our competitors, whether in the EU or through new trade deals.”
NFU Cymru also welcomed the Welsh government's announcement, as this year would present 'continued challenges for the sector'.
President John Davies said: “As a union, we have stressed to Welsh government that the BPS is crucial to maintaining the supply of safe, high quality and affordable food to all in society.
"This is as important as it has ever been, as the nation continues to battle against the effect of the coronavirus."
Mr Davies said farmers were dealing with trade friction resulting from Brexit, trade deals with major agricultural exporting nations and significant hikes in input costs.
"[The] announcement from the minister is therefore a welcome assurance to the nation’s farmers," he added.
“As well as providing security to farming businesses, this announcement is also a boost for our rural businesses and communities, as Welsh farms provide the economic, social and cultural foundation of our rural communities."
