Concerns over the impending end of the Glastir agri-environment scheme and the current Sustainable Farming Scheme proposals were top of the agenda at the recent series of county shows.

Farmers attending the county shows had fears that a ‘cliff edge’ drop in funding will have a negative impact on their businesses, according to NFU Cymru.

The lack of information around budget and payment rates for the incoming interim scheme is undermining confidence and means farmers cannot make future plans, the union added.

NFU Cymru recently wrote to Minister for Rural Affairs Lesley Griffiths MS, echoing members’ concerns that the Glastir Agri-Environment Scheme will end in December to be replaced by an interim habitat scheme in 2024.

NFU Cymru president Aled Jones said: “With the budget and payment rates for the interim scheme yet to be announced, existing Glastir contract holders – many of whom have been agri-environment scheme participants for numerous years and have amended their business practices accordingly – are deeply worried about whether this new, interim scheme can provide them with the same level of income.

“In many instances, alongside direct payments, Glastir area-based payments form an integral component of farm business income underpinning farm business viability, as well as supporting the maintenance of organic farming in Wales. The concerns of farmers are being compounded by the very significant inflationary pressures and escalating costs on farming at this time.

“It is concerning to us that the decision not to extend Glastir area-based contracts through the transition to the Sustainable Farming Scheme (SFS) which is proposed to commence in 2025 has been made without consultation or comprehensive impact analysis to understand the effect on the businesses involved.”

Concluding, Mr Jones said: “In the absence of economic modelling to understand the extent of the funding ‘cliff edge’ faced by Glastir area-based contract holders, we believe that Welsh Government should consider offering Glastir extensions for 2024 with the new interim agri-environment scheme offered to non Glastir contract holders. The provision of adequate funding for farming through the Basic Payment Scheme and agri-environment in 2024 is also going to be essential to maintaining the confidence of the industry in Welsh Government’s proposed policy approach of providing fair reward for the delivery of environmental outcomes going forward.”