The Welsh government has announced that almost 90% of farmers’ Basic Payment Scheme (BPS) claims will be paid when the new payments window opens on Thursday (1st December).
Announcing the news on the opening day of the Royal Welsh Winter Fair, the Cabinet Secretary for Environment and Rural Affairs, Lesley Griffiths, has confirmed that £173m will be paid into the bank accounts of 13,176 Welsh farmers on the first day of the payment window, up 40% on last year.
Welcoming the news, the Cabinet Secretary said: “I am delighted to announce Wales has returned to its usual excellent performance, with almost 90% of farmers receiving their BPS payments on the first day.
“This exceptional performance has been helped by our move to online only applications, which has reduced bureaucracy, allowing applications to be processed quickly and efficiently. We are the only home nation to provide a 100% digital approach to these applications.
“Our leading payment performance has also been greatly aided from working with the farming unions and agents who have offered assistance to many farmers in making their applications. I am grateful to them, and to Welsh farmers who have embraced RPW Online and made the new system such a success.”
The Cabinet Secretary also discussed the implications of the UK’s decision to leave the EU with the industry and reassure farmers about future BPS payments.
The Cabinet Secretary added: “There will of course be concerns around the future of BPS and similar schemes as a result of the EU referendum decision. While we remain a member of the EU this scheme will continue. We have also received assurances from the Treasury that BPS will be fully funded until 2020.”
'Cash flow has been a major concern'
Stephen James, NFU Cymru President said the announcement is 'good news' and will help farm businesses following a year when cash flow has been a 'major concern' across all sectors.
Mr James said: “A return to making full payments, rather than part payments as was the case last year, alongside an improved exchange rate, up 16.5% on the 2015 rate, will be a boost not just for farmers but the thousands of rural businesses that rely heavily on farmers for much of their income.
“The improved exchange rate will help cushion the blow for the many farmers who will see their support payments fall as part of the transition from the previous historic basis of support to the new flat rate based BPS.
“This will be important given that farm incomes have been under immense pressure as a result of difficult market conditions over the past 18 months or so as highlighted by the forecasts for net farm income for ‘all farm types’ for the year to March 2016 down by 25% to £13,000.
“Following the Brexit vote it is also important to reiterate the uncertain times we are in, we know as a result of announcements from the UK Treasury and our Cabinet Secretary earlier this year that the BPS is guaranteed up to and including the 2019 scheme year. Whilst we welcome the clarity this gives us for the short term, our focus at NFU Cymru is now firmly on delivering a domestic agriculture policy for Welsh farmers post Brexit.”
