The Welsh Farmers Union has said Welsh farmers are warning that unless firm funding is secured ahead of next year’s Senedd elections, the Sustainable Farming System (SFS) is at risk of becoming unattainable.
In a meeting with Plaid Cymru leader Rhun ap Iorwerth MS and local affairs spokesperson Llyr Gruffydd MS, FUW renewed its manifesto demand for a clear financial solution as the SFS moves from design to delivery.
The SFS will replace the basic payment system in Wales and will form the central mechanism by which future agricultural support will be provided.
The Welsh Government has positioned the scheme as a way to support food production alongside environmental impacts, with payments linked to a universal set of actions that farmers must take, with optional layers for additional activities.
However, farming unions have repeatedly warned that the transition from area-based payments to new structures carries financial risks for many businesses, especially livestock farms in disadvantaged areas, unless funding levels are sufficient and payment rates are maintained in real terms.
The discussion followed a visit to Galt Ti Serin, an upland beef and sheep farm near Pentrefoelas, where FUW Regional Vice-Chairman Alun Owen and his family welcomed Plaid Cymru representatives to discuss the practical impact of policy changes on working farms.
Central to the union’s concerns is the level of funding allocated to the SFS. FUW is calling for the current £238m base level funding for the scheme’s universal tier to be increased by at least £76m, based on the Welsh Government’s own assessment, to fully mitigate the projected economic impact on agribusinesses.
FUW chairman Ian Rickman said funding certainty was now vital. “As sustainable farming systems move from design to implementation, it is vital that existing and future Welsh Governments provide appropriate budgets and financial frameworks,” he said.
He warned that “Welsh’s farmers need certainty and the right support” if the scheme is to make a contribution to food production, rural communities and the environment.
Discussions on farms also focused on the wider pressures facing Welsh agriculture, including environmental regulations under the Agricultural Pollution Control Regulations and how these interact with SFS requirements.
The union pointed to evidence published by the Welsh Government last autumn that showed that despite improvements through engagement and lobbying, livestock numbers and farm incomes were still likely to decline. FUW said this shows that the scheme needs to be adequately funded to avoid compromising the viability of farms.
Reflecting on his visit, Mr Owen said it was vital that politicians understood the reality facing farmers. “It’s important that politicians understand the pressures our farms face, from environmental regulations to the introduction of SFS,” he said. He also stressed the need for a five-year fiscal framework to provide “medium-term economic certainty”.
As May’s Senedd election approaches, Mr Rickman said FUW would continue to press politicians from all parties to commit to putting Welsh food production and family farms at the heart of future policy.
He warned that without clear financial guarantees, farmers will struggle to continue to invest, adapt and produce sustainable food for Wales.
