Welsh government's confirmation that the rural budget will be slashed by £37.5 million has been called a 'real worry' for the farming industry.
Minister for Finance Rebecca Evans delivered a statement to the Welsh parliament outlining cuts to several portfolios to address a shortfall in the Welsh budget.
As a result, the rural affairs revenue budget has been revised down by £17.3m, while the rural affairs capital budget will decrease by £20.2m.
The entire rural budget, including agriculture, currently makes up just 2% of Welsh government spending.
The cuts come against a backdrop of funding to farmers having effectively fallen by 30% over the past decade as a result of inflation.
Responding, NFU Cymru warned that it would place further financial challenges on farms which 'continue to deliver for the people and communities of Wales'.
The union's deputy president Abi Reader said: “It is a real worry for the industry to see this loss to the budget today.
“Welsh farming is facing unprecedented challenges, with input costs now 40% higher than they were in 2020.
"At the same time, farmers need to continue to produce high quality safe and affordable food for all in society, helping to meet both domestic and global security challenges.
"At a time when our farmers are facing a number of high-priority demands, our government has today cut our budget by 7.8%."
The document seen by NFU Cymru provides only an overview of the main outcomes of the review, with further details of precisely where the axe is to fall within the rural affairs budget due to be confirmed in February.
However, according to the union, the Rural Investment Programme will bear the brunt of the cuts.
The programme supports investment in the environment and climate change through productivity improvements on farm, such as supporting farmers to undertake water quality improvements on farm.
Ms Reader said NFU Cymru had consistently raised concerns about the delivery of Rural Development funding, initially under EU programmes and more recently under the Rural Investment Support Schemes.
She added: "We would reiterate our call for an independent review into Welsh government’s delivery of Rural Development funding.”
