Nearly every farming business in Wales will be affected by yesterday’s statement by the minister for natural resources and food, which sets out the framework for how the Welsh Government intends to implement direct payments from 1 January, 2015.
That's according to NFU Cymru (Wales), which, a spokesperson said, while understanding that change is inevitable, 'has consistently sought to impress on the minister (Alun Davies AM) the need to carefully manage this change and to leave no stone unturned in seeking to minimise disruption to farming businesses in the move away from the current direct payment regime'.
Davies announced that farmers will fall into one of three new payment strands as part of a radical change to the financial support they receive to help them produce food.
Ed Bailey, NFU Cymru president, said: “The Welsh Government, with advice from industry stakeholders, undertook significant modelling work during the second half of 2012. This work showed that a four-rate model delivered a workable scheme that was the ‘best fit’ in terms of minimising disruption as much as is possible for the diverse range of farming businesses the length and breadth of Wales.
'By opting not to take this approach forward, the minister has committed to a payment rate system that will see more redistribution than would otherwise have been the case.
“We are, however, pleased that the Welsh Government will permit Welsh farmers to use the full range of options to fulfil the greening requirements rather than making participation in Glastir ((the new all-Wales Agri-Environment Scheme recently introduced by the Welsh Government), for example, a requirement for fulfilling greening conditions.'
Nevertheless, he added: “The issue that remains the biggest threat to the productive capacity of Welsh agriculture, though, is the minister’s decision last month to slash 15 per cent off Pillar 1 payments before even beginning the transition to an area based payment system. This cut will take effect from the 2014 single farm payment.
'This decision taken by our minister to modulate at a higher rate than the rest of the UK and our key competitors in the EU will disadvantage Welsh farmers and affect our competitiveness in the UK and EU markets.'
Outlining the plans for the three-tier payments, Davies said farmers will receive £16.50 per hectare for moorland over 400 metres above sea level.
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