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Plans to cut Wales' rural affairs budget by almost £40 million have been condemned by farming unions.

The Farmers' Union of Wales expressed ‘major concern' following this week's announcement which will see the rural budget reduced by more than £37 million in order to shore up other sectors.

FUW president Ian Rickman described the news as a ‘significant blow' for the industry and said: "This is extremely concerning given the important work being undertaken by the Welsh Government's rural affairs department at a time of major transition and pressures for farmers and the rural communities they support.

The announcement comes after cuts totalling more than £200 million have been imposed on agriculture and rural development since 2019, which the union said had and solidified its worried regarding the lack of clarity around the budget available for the new Habitat Wales Scheme.

Mr Rickman added: "No administration is immune from spending cuts and we fully recognise there are pressures outside Welsh Government's control. However, budget cuts of this significant nature call into question the ambitious environmental targets posited by the Welsh Government. Without proper and ambitious support for food production and environmentally sustainable farming it will be difficult for the industry to meet the aspirations of the Welsh Government in these areas."

See also: Made in Wales for Wales

NFU Cymru deputy president Abi Reader said: "It is a real worry for the industry to see this loss to the Rural Affairs budget. It is important to note these cuts come against a backdrop of funding to farmers having effectively fallen by 30 per cent over the past decade as a result of inflation.

"The entire Rural Affairs budget, including agriculture, currently makes up just two per cent of Welsh Government spending. For this, farmers manage 80 per cent of the land area of Wales, underpin an £8.5 billion food and farming sector and make an unparalleled contribution to the economic, environmental, social and cultural wellbeing of rural Wales - we believe this represents a good return on investment."

Vulnerable

Plaid Cymru spokesperson for agriculture and rural affairs Llyr Gruffydd MS said the move was ‘a punch in the stomach for the agriculture sector in Wales' and came at a time when the sector was at its ‘most vulnerable and facing unprecedented uncertainty and insecurity' as it transitioned from long-established farm support programmes.

 Mr Gruffydd said: "This Government is leaning more heavily than ever on the farming sector to deliver its policies. It has been thrust to the frontline in the fight against climate change and tackling the nature emergency, whilst still being expected to put food on our plates and contribute to our nation's food security. Given its critical importance in delivering government policies it's difficult to accept such a significant cut in budget."

A Welsh Government spokesperson said it remained committed to supporting our farmers and rural communities.

"For example, we have prioritised the BPS 2023 budget, which remains at £238m and are making advance payments as usual, with more than £158m paid to over 15,600 farm businesses since October 12.  We have introduced the interim Habitat Wales scheme which will allow more farmers to apply and we encourage them to do so. 

"We have consistently made funding available over many years to improve nutrient management on farms and support infrastructure improvements to reduce the risk of pollution from agricultural activities. This includes support for farm businesses to comply with the requirements in the Water Resources (Control of Agricultural Pollution) Regulations 2021.  

 "Our direct support ranges from help to ensure sufficient storage capacity to optimise the use of on-farm nutrients, and for smaller scale actions such as yard coverings, all alongside advice and training offered by Farming Connect."

The spokesperson said the Government remained committed to working with NFU and others in the sector to ensure the good practice already achieved on many Welsh farms becomes the norm across Wales. 

 "Last year, we confirmed we would make available up to £20m extra funding to support compliance with the 2021 regulations. This is not affected by the in-year budget statement made yesterday.

"We will continue to work with the farming unions and others to ensure our farmers produce food sustainably while dealing with the climate and nature emergencies."