A major overhaul of the Sustainable Farming Scheme (SFS) will need to take place before it is workable for Welsh livestock farmers, NFU Cymru has warned.
The union's livestock board met recently to discuss in detail the Welsh government’s third and final consultation on the SFS, which closes for responses on 7 March.
Earlier this week, thousands of Welsh farmers took part in a protest in Cardiff due to heightening concerns at the Welsh government's vision for the industry.
Rob Lewis, chairman of the board, himself a beef and lamb producer, said after the meeting that the SFS was a 'major worry' for livestock farmers.
In its current format, the SFS, Wales' post-Brexit system of support, stipulates that farmers must have at least 10% tree cover on their land and a further 10% for wildlife habitat.
However, a recent impact assessment commissioned by the government found that it risked reducing 122,000 livestock units, representing a 'shocking' 11% fall.
This equates to 800,000 sheep from a total flock of 4.8 million breeding ewes or 122,000 adult beef cattle.
Not only would this impact on the bottom line of thousands of farm businesses, but the whole of the Welsh rural economy would be impacted, Mr Lewis warned.
He said: “Welsh government’s own economic appraisals put the value of the Welsh meat and meat products sector at £1.4bn, with 64 business units located across Wales and 6,000 employed in these units.
"Many of these plants rely on a critical mass of produce from farms in Wales, so they cannot afford to see a reduction in stock numbers from farms in Wales.
“This goes against the government’s aspirations of continuing to grow food products in Wales to meet the increasing demand for our high quality PGI Beef and Lamb, both in the UK and in the vast overseas market.”
At the recent board meeting, livestock farmers raised concerns about the practicality and cumulative administrative burden associated with the delivery of the SFS's proposed universal actions.
They highlighted that the cost incurred / income foregone payment methodology proposed by the government for undertaking the universal action requirements failed to recognise the value to society of the actions being undertaken by farmers.
Mr Lewis said: “The board were clear a long-term stability commitment within the SFS was required to recognise the economic, environmental, social and cultural contribution that Welsh farming makes to society.
"[This would] underpin the resilience of food production in Wales and the continued secure supply of high quality, safe and affordable food from Wales."
He concluded: “The NFU Cymru Livestock Board believes that a major overhaul of the scheme will need to take place before it is workable for Welsh livestock farmers.”