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| Farmers in Wales expecting cut in payments | Farmers in Wales expecting cut in payments |
| (35 minutes later) | |
| Farmers are due to find out how much money they will receive over the next few years to help them produce food. | Farmers are due to find out how much money they will receive over the next few years to help them produce food. |
| Payments which come from the EU's Common Agricultural Policy (CAP) are expected to fall and there may be different rates to help upland farms. | Payments which come from the EU's Common Agricultural Policy (CAP) are expected to fall and there may be different rates to help upland farms. |
| Farming unions say incomes will fall between now and 2020 and prices of meat could go up. | Farming unions say incomes will fall between now and 2020 and prices of meat could go up. |
| But the Natural Resources Minister, who is to reveal the payments, said it was time for efficiency. | But the Natural Resources Minister, who is to reveal the payments, said it was time for efficiency. |
| Alun Davies is expected to re-affirm what he said at the end of last year that it would be the first step in "real term decline of direct support for farmers". | Alun Davies is expected to re-affirm what he said at the end of last year that it would be the first step in "real term decline of direct support for farmers". |
| Wales has about 16,000 farmers and CAP is used by the Welsh government to fund activities which support farmers, the countryside and rural communities. | Wales has about 16,000 farmers and CAP is used by the Welsh government to fund activities which support farmers, the countryside and rural communities. |
| The main focus of CAP is to help farmers produce food at affordable prices but farmers fear the changes could push up the price of food. | |
| Phil Siddall, who runs a farm near Newborough on Anglesey, said: "With the cuts, we'll need more money for our beef, for any farm products. | Phil Siddall, who runs a farm near Newborough on Anglesey, said: "With the cuts, we'll need more money for our beef, for any farm products. |
| "We need more money and can the housewife afford to pay more for our beef? No. | "We need more money and can the housewife afford to pay more for our beef? No. |
| "The price of food will definitely go up." | "The price of food will definitely go up." |
| Last year it was announced that direct farm payments for Wales would be around €2,245m (£1,870m) over 2014-2020, with €355m (£296m) allocated for rural development schemes. | |
| But the budgets for both are being reduced by 12.6% and 5.5% respectively after allowing for expected inflation. | |
| Mr Davies held a consultation on how the direct farm payments will be implemented in Wales and his decision is being announced on Tuesday afternoon. | |
| 'Resilient business' | 'Resilient business' |
| Peter Midmoor, professor of economics at the School of Management and Business at Aberystwyth University, said the minister may decide to offer a uniform payment rather than differentiate between lowland and hill farmers. | Peter Midmoor, professor of economics at the School of Management and Business at Aberystwyth University, said the minister may decide to offer a uniform payment rather than differentiate between lowland and hill farmers. |
| "If there is a uniform payment it would mean a massive transfer of resources away from the lowland farmers who have very high costs and need a lot of support towards the upland farmers who will get a huge windfall gain," he told BBC Radio Wales. | "If there is a uniform payment it would mean a massive transfer of resources away from the lowland farmers who have very high costs and need a lot of support towards the upland farmers who will get a huge windfall gain," he told BBC Radio Wales. |
| "Farming is a very resilient business. There are lots of entrepreneurial people who say 'okay, well this is the situation, how do we adapt our businesses?' | "Farming is a very resilient business. There are lots of entrepreneurial people who say 'okay, well this is the situation, how do we adapt our businesses?' |
| "It may mean that the price of food rises a little bit, it may mean that some farmers decide it's time to retire but, overall, I don't expect very many changes to occur very soon. | "It may mean that the price of food rises a little bit, it may mean that some farmers decide it's time to retire but, overall, I don't expect very many changes to occur very soon. |
| "Changes do occur in farming but it's a slow thing and this is just one factor among quite a range." | "Changes do occur in farming but it's a slow thing and this is just one factor among quite a range." |