The Welsh government’s proposed Sustainable Farming Scheme does not provide equal access to tenant farmers, NFU Cymru has warned.
With around 30% of land in Wales under some form of tenancy or let, the union said it was vital that equal access to the post-Brexit scheme was recognised.
Welsh government proposes that the Universal Action layer of the scheme will be delivered through annual agreement rather than five-year contracts to aid access for those with shorter term Farm Business Tenancies and lets.
Tenant farmers who are able to prove through their tenancy agreements that they are unable to manage woodland or plant additional trees will be exempted from the 10% tree cover requirement.
NFU Cymru president Aled Jones said that while the proposals go some way to enabling tenant farmers to access the scheme, they did not equate to equal access.
"Tenant farmers remain disadvantaged by the latest Sustainable Farming Scheme proposals," Mr Jones warned.
“Tenant farmers may not have to meet the 10% tree cover requirement but critically, nor will they be able to access the associated component of the Universal Baseline Payment.
"In trying to address one issue, the inability of many tenant farmers to meet the 10% requirement due to the nature of their tenancy agreement, government has created another issue in that the Universal Baseline Payment tenant farmers receive, will be lower than it would be if they owned a similar hectarage of land.
"It is simply unacceptable to disadvantage the tenanted sector in this way," Mr Jones said.
Tenant farmers have also raised concerns about their ability to deliver a number of the other Universal Actions, including ponds and scrapes, as well as the requirement to maintain traditional farm buildings in a stable condition.
And the need to get permissions to undertake a number of the actions also has the potential to weaken the position of tenants with their landlord.
Mr Jones added: "Overall, it remains clear that the Universal Actions proposed by Welsh government are far from universal – in that they are not possible for all farmers to undertake.
"Tenant farmers are also concerned about the government’s proposed payment methodology and the move to pay the Universal Baseline Payment on the basis of costs incurred and income foregone calculations."
The BPS is to be fully phased out by 2029 and replaced by the Sustainable Farming Scheme from 2025.
Earlier this week, Welsh farmers protested outside the office of the Rural Affairs Minister as anger brews over the future direction of the industry.
Dozens of tractors and other farm vehicles drove up to the constituency office of Lesley Griffiths in Wrexham, North Wales on Monday (12 February).
This followed a meeting of over 3,000 farmers at Carmarthen market where the Sustainable Farming Scheme proposals were discussed, with many believing the industry will be hit hard.