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| Version 2 | Version 3 |
|---|---|
| Farmers in Wales expecting cut in payments | Farmers in Wales expecting cut in payments |
| (about 1 hour later) | |
| Farmers face "radical change" over the financial support they receive to help them produce food, warns a minister. | |
| Payments which come from the EU's Common Agricultural Policy (CAP) are due to fall and farmers are predicting tough times ahead. | |
| Natural Resources Minister Alun Davies who is to reveal the payments said subsidies "tend not to lead to innovation and lead to efficiency". | |
| Farming unions say incomes will fall and prices of meat could go up. | |
| Mr 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" as he pushes for more self sufficiency in the industry. | |
| 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. |
| 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. | 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. |
| "What we are seeking to do is to invest in businesses, in business growth and agriculture... and also want to make agriculture more sustainable." | "What we are seeking to do is to invest in businesses, in business growth and agriculture... and also want to make agriculture more sustainable." |
| 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. |
| And there are also plans to use 15% of money for rural development projects rather than direct payment to farmers. | |
| 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. | 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' |
| 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." | |
| 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 said. | "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." |