Welsh farm leaders are seeking clarity on the future of agricultural funding following concerns Wales's share could be drastically reduced.
As part of the budget, the chancellor redefined agricultural funding for the devolved nations using the Barnett formula, rather than maintaining a separate, ring-faced allocation as has historically been the case.
The Barnett formula is a calculation based on population rather than farm and rural characteristics, the opposite of the EU's system.
Previously, EU funding for UK agriculture was allocated across the UK nations under the Common Agricultural Policy (CAP) formula, based on rural and farming criteria such as the size, number and nature of farms.
This resulted in 9.4% of the total UK agriculture budget coming to Wales when the UK was a member state of the EU.
However, the Farmers’ Union of Wales (FUW) has warned that the UK Treasury’s decision to ‘Barnettise’ the block grant for each devolved nation could see Wales’ proportion of total agricultural funding fall drastically.
Writing to the Secretary of State for Wales, FUW President Ian Rickman has sought urgent clarity from the government on the funding reform.
He cited a worse case scenario - ‘Barnettisation’ of agricultural funding - which could see Wales’ proportion of total agri funding fall from 9.4% to around 5%, equal to a cut of around 40%.
The union argued that despite an additional £1.7 billion being made available to Wales as a result of the budget, this additional funding has been linked to investment into schools, housing, health and social care, and transport.
If agricultural funding has been effectively 'Barnettaised' - 5% of UK allocation rather than 9.4% - there could be 'serious implications' for Wales's farmers.
The FUW’s concerns were cited in the House of Commons by Liz Saville Roberts MP and Ben Lake MP during a debate on rural affairs this week.
Ian Rickman said: “While the Welsh government will ultimately have the final word on the Welsh agriculture budget, 'Barnettisation' will further undermine the industry - and fail to reflect inflation and the plethora of public goods farmers are increasingly expected to deliver.
"We’ve already experienced the anger, frustration and fear within the agricultural sector following the UK government’s lack of clarity regarding the changes to the agricultural property relief.
"This continued lack of clarity regarding the funding being made available to Wales is a further concern for an industry already on its knees.
"I do hope the UK government will be able to provide urgent clarity on these matters," Mr Rickman concluded.
