Emergency cuts to Wales' rural affairs budget has been called 'a significant blow' to farmers during a time of policy transition and financial pressures.
The Farmers’ Union of Wales (FUW) has expressed 'major concern' at the announcement made by Wales' Finance Minister Rebecca Evans.
She confirmed that the rural affairs revenue budget will fall by £17.3m, while the rural affairs capital budget will decrease by £20.2m.
The entire rural budget, including agriculture, currently makes up just 2% of Welsh government spending.
The latest reduction comes against a backdrop of funding to farmers having effectively fallen by 30% over the past decade as a result of inflation.
Since 2019, there have been cuts totalling more than £200m in funding for Welsh agriculture and rural development.
FUW President Ian Rickman said the news would be a blow to the industry during an uncertain time for farmers and rural communities.
He said: “No administration is immune from spending cuts and we fully recognise that there are pressures outside of the Welsh government’s control.
"However, budget cuts of this significant nature call into question the ambitious environmental targets posited by the Welsh government.
"Without proper and ambitious support for food production and environmentally sustainable farming it will be difficult for the industry to meet the aspirations of the Welsh government in these areas.”
Mr Rickman added: “The Finance Minister cited protection of jobs as one of the priorities underpinning the changes to spending plans.
"We would therefore like to remind the Welsh government that the funds made available to family farms in Wales support a tremendous array of secondary and tertiary businesses.
"Hundreds of businesses are solely reliant upon Welsh agriculture and any reductions in farm incomes will have a direct impact upon these businesses and their employees."
NFU Cymru warned that the budget cut would place further financial challenges on farms which 'continue to deliver for the people and communities of Wales'.
The document seen by NFU Cymru provides only an overview of the main outcomes of the review, with further details of precisely where the axe is to fall within the rural affairs budget due to be confirmed in February.
However, according to the union, the Rural Investment Programme will bear the brunt of the cuts.
The programme supports investment in the environment and climate change through productivity improvements on farm, such as supporting farmers to undertake water quality improvements on farm.
The union's deputy president Abi Reader said: “It is a real worry for the industry to see this loss to the budget today.
“Welsh farming is facing unprecedented challenges, with input costs now 40% higher than they were in 2020.
"At the same time, farmers need to continue to produce high quality safe and affordable food for all in society, helping to meet both domestic and global security challenges.
"At a time when our farmers are facing a number of high-priority demands, our government has today cut our budget by 7.8%."
