NFU Cymru says it is ‘extremely concerned’ after economic modelling showed a flagship farming policy from the Welsh Government will lead to a 16 per cent decrease in income.

The union is calling on Welsh Government to commit to evolve the Sustainable Farming Scheme.

Welsh Government has published its evidence base for the Sustainable Farming Scheme (SFS).

Economic modelling undertaken for Welsh Government on the SFS universal actions estimates reductions of around 5% in livestock numbers, 4% in labour on farm and 16% in farm business income.

While this latest independent report estimates the level of the negative impacts of the revised SFS proposals have reduced by some margin in comparison to the ‘shocking scenario’ anticipated in the previous accompanying impact assessment.

NFU Cymru President Aled Jones said Welsh Government must act on the newly published information not only in the interests of Welsh farming businesses, but also rural communities and those whose jobs in Wales’ £10billion food and drink industry are reliant on a thriving agricultural sector.

Mr Jones said: “The economic modelling estimates a reduction in the number of jobs, income and production when compared to the previous iteration of the modelling, however from our perspective the numbers projected this time around remain extremely concerning.

“NFU Cymru is looking to government to commit to use the information published to review and address elements that negatively impact on income, jobs and production levels.

“We have always maintained that the SFS should provide at least the same level of economic stability to Welsh farming, the supply chain and our rural communities as the Basic Payment Scheme (BPS) does currently.

“The removal of the well-documented 10% tree cover requirement has been a significant step forward. The scheme requirement for 10% habitat remains an area that we believe needs to be kept under review.”