Welsh farming unions have welcomed the Welsh Government announcement that advance payments on the Basic Payment Scheme (BPS) will be made available from today.
More than 15,600 Welsh farms will receive a share of over £161m, with 97% of claimants receiving a BPS advance payment worth 70% of their estimated claim value.
The automatic BPS advance payments will be made this month by Rural Payments Wales (RPW). Before 2021, BPS payments commenced from 1 December annually.
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However, regulation changes following the end of the EU Exit Implementation Period has simplified the requirements for BPS. Now BPS advance payments can be made to eligible claimants before December, unless there are ongoing land dispute, breaches identified at inspection or outstanding probate matters.
Glyn Roberts, president of the Farmer's Union of Wales said the payments were "excellent news" for the sector and for farming businesses across Wales "especially considering the on-going cost of living crisis".
"It is therefore essential that such a financial mechanism remains in place going forward in order to ensure that our farm businesses and the wider rural economy don’t suffer," he said.
Mr Roberts also pointed out that most of the money arriving in farm accounts through the BPS would eventually go out to other business which are directly or indirectly involved in agriculture, such as suppliers or vets. This would support tens of thousands of Welsh livelihoods and businesses, he said.
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"I want to reiterate that we strongly welcome not just the announcement today but also the commitment to a baseline payment for all farmers, providing much needed stability for food producing family farms," he said.
"We have been clear that going forward the majority of the budget should be used to provide this stability payment in return for the new Universal Actions required of farmers on top of new ‘National Minimum Standards’."
NFU Cymru president Aled Jones said the payments will be a "major boost" for the cash flow of more than 15,000 Welsh farmers and allied industries.
"This news is particularly important for farmers this year given the continued rise in the cost of inputs which are putting extreme pressure on farmers’ margins. Latest government figures show that agricultural inputs have increased by around a third over the past 12 months, with some fertiliser products having tripled in price," said Mr Jones.
He added: "Once again, current national and global events have highlighted the continued importance of the BPS to the Welsh farming industry and the wider rural economy. At a time when we are facing a global food crisis, largely due to the ramifications of the ongoing conflict in Ukraine, 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."
Farm businesses will receive the full and remaining balance of the BPS 2022 payments from 15 December 2022, subject to full validation of the BPS claim. It is expected all but the most complex BPS claims will be fully validated, and payments made before the end of the payment window on 30 June 2023.
Rural Affairs Minister Lesley Griffiths said: “Following the simplification of BPS requirements, advance payments have been made prior to December which provides financial certainty to farm business during this extremely challenging time.
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“In addition, here in Wales we have maintained the BPS budget at £238m, the same level as last year.
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“Full and remaining balance BPS 2021 payments will be made from 15 December and my officials will again this year be working hard to make these payments to as many farmers as possible early in the payment window.”
However, the Welsh Conservatives said this advance payment for farmers in Wales had come months too late.
Shadow Rural Affairs Minister Samuel Kurtz said: "It is welcome that farmers in Wales are getting an advance on their support payments, but with rising input costs, farmers are being offered little flexibility when claiming their BPS.
“Welsh Conservatives were calling for the option of these payments to be brought forward to July, back in the spring. This flexibility in payment times could have allowed farmers in Wales to buy resources before inflation continued to rise.
“We must not forget the reason for this prince inflation for Welsh farmers is Putin’s illegal war in Ukraine. To secure our own food security the Welsh Government must be far more willing to offer our important agricultural industry the flexibility it needs to compete on a world market."
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