The announcement, which will see more than £158m shared by over 15,600 farms, is the third consecutive year that Rural Payments Wales (RPW) has made automatic Basic Payment Scheme (BPS) advance payments in October.
NFU Cymru President Aled Jones said: “I warmly welcome the announcement from the Rural Affairs Minister, Lesley Griffiths MS, that 70% of BPS advance payments will be made to the vast majority of farmers in Wales tomorrow. This support will be a major boost for the cash flow of more than 15,600 Welsh farmers, along with the allied industries who rely on farmers for so much of their income.
“I would like to recognise the work of the staff at RPW for ensuring that this support can be delivered tomorrow and to all those who support farming businesses with the completion of the Single Application Form by the May deadline date.
“With Welsh farmers having been exposed to very significant inflationary pressures - the level of ‘agri-inflation’ is running around 40% higher in 2023 compared to 2020 - this news is welcomed, particularly when output prices have not kept pace with input prices, thus putting producer margins under pressure.
Committed to food production
“Through the successive crises of the global pandemic and the Ukraine war, Welsh farming has remained committed to food production and providing consumers with safe, high quality, affordable food. Welsh Government’s role in providing stability and certainty to farmers through the BPS has been crucial to this. The continuation of this stability payment is as important now as it has ever been and why it is crucial that stability measures remain as a key part of the long-term agricultural policy framework in Wales. The Sustainable Farming Scheme must maintain at least the same level of stability, for all farm sectors and types, as that currently provided by the BPS.
“The BPS is absolutely imperative, not only for Welsh farm businesses, but for the vitality of our rural communities, the wider supply chain and for our environment. Farmers can only deliver for the environment and make investments to help achieve our 2040 net zero ambition from a position of farm business viability.
Inflationary pressures
“Welsh farmers fully recognise the inflationary pressures that Welsh Government also faces at this time. We welcome the maintenance of the BPS budget for 2023 and the importance of maintaining this budget for 2024 cannot be overemphasised. It is important to recognise that the budgets for agriculture remain at levels established a decade ago and, in that time, have not been adjusted for inflation. Taking account of inflation and using the Bank of England inflation calculator, the BPS should increase by £79 million from £238m to £317m just to stand still.
“Whilst I am extremely pleased to see this injection of funding into Welsh farming, we must not forget the small percentage of farmers who are not due to receive an advance payment tomorrow. I am pleased that RPW has also made changes that mean that some of these businesses will not have to wait until the 15th December date when the payment window for balance payments opens, meaning they will now be able to receive an advance payment once their claim has been validated.”