BPS payments to Welsh farmers have been maintained at current levels for next year, the government has confirmed.
The £238 million budget mirrors the level of subsidy support provided to farmers in Wales over the previous four years.
With costs on farm some 40% higher than they were in 2020, BPS payments are seen as an important tool for providing stability to the industry.
Lesley Griffiths, Wales' rural affairs minister, said: "I can confirm a total budget of £238 million to provide direct payments to farmers in 2024 at the same level provided over the past four years.
"This has been secured despite the reductions in farm support funding from the UK government over recent years."
As the transition to life outside the EU and beyond BPS continues, the agriculture sector is undergoing significant changes.
The Welsh government is currently consulting on its final proposals for the Sustainable Farming Scheme (SFS) that will begin in 2025.
Ms Griffiths added: "Subject to Wales receiving fair funding arrangements from the UK government from the end of the current spending review period, the 2024 payment of BPS will serve as the index on which payments made during the transition to the SFS will be based."
NFU Cymru said it 'warmly welcomed' the announcement, calling it 'vital stability' to farming businesses.
The union's president Aled Jones said: “As well as providing security to farming businesses, this announcement is also a boost for our rural businesses and communities.
"In 2022, farming delivered a gross output of £2.1bn pounds. We can say confidently, therefore, there is a nine to one return for every BPS pound invested in Welsh farming."
However, Mr Jones highlighted concerns over the level of cuts to the wider rural affairs budget, amounting to a loss of £37.5m.
The Welsh government has already warned that it faces its ‘toughest financial position since devolution’.
"NFU Cymru fully recognises the inflationary challenges that Welsh government faces at this time," Mr Jones said.
"Clearly a cut to the overall Rural Affairs budget is concerning and does have implications for the delivery of programmes within the Minister’s portfolio.
"We are urgently seeking more details from government about how these cuts will impact the sector."
