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Farmers in Wales expecting cut in payments Farmers in Wales expecting cut in payments
(about 1 hour 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 farmers expect tough times ahead.
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 "radical change".
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.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. Mr Davies told BBC Radio Wales: "What I am going to be announcing today is a restructure of agricultural support in Wales, probably the most radical change we have seen for decades, and we are going to be announcing a series of investments to make agriculture more efficient and profitable in the future.
"We need more money and can the housewife afford to pay more for our beef? No. "What we are seeking to do is to invest in businesses, in business growth and agriculture... and also want to make agriculture more sustainable."
"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.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.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. And there are also plans to use some of the money for rural development.
Mr Davies held a consultation on how the direct farm payments would 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 said.
"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."
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.
"The price of food will definitely go up."
Brian Walters, vice president of the Farmers' Union of Wales, added: "If the political will across Europe is to cut the budget then that will be it, but it is putting us on a disadvantage if he [Mr Davies] is cutting us more than the other European countries and even UK countries."