It is 'difficult to see' how Welsh farms can produce food without relying heavily on BPS payments that are often higher than income, according to surveyors of new data in Wales.
New figures compiled by Aberystwyth University's Welsh income report showed overall profit on many farms to be less than provided by the Basic Payment Scheme.
The data from 511 farms showed profit for hill cattle and sheep farms was £152/ha, with BPS income at £189/ha.
Survey director Tony O'Regan said: "Farmers are often unfairly criticised for crying wolf however, it's difficult to see how many Welsh farms can currently produce food economically without relying on significant non farming income and timely BPS payments.
"Particular attention needs to be given to the contribution of the BPS, other subsidies and diversified income so that the reader can examine the contribution of the ‘farming’ enterprises to the bottom line. For example, these three sources contributed around 39% of outputs and 173% of profits, on average, for hill sheep farms."
Payment delay would have 'direct impact'
Welsh Secretary for Environment and Rural Affairs Lesley Griffiths confirmed at the Royal Welsh Winter Fair on November 28 that £173m would be paid into the bank accounts of 13,176 Welsh farmers on the first day of the payment window, December 1.
FUW President Glyn Roberts said: "The Welsh Government has hit a high payment target and we are grateful to all the staff who have worked hard to ensure money can be released on the first day of the payment window.
"Last year our farmers faced a considerable delay in receiving the BPS due to the extremely complicated process of completing the Single Application Forms, so we are grateful that these problems have been resolved in most cases.
"Most money arriving in the farm account through the BPS will be going straight out to secondary and tertiary businesses. Hundreds of firms are solely reliant on Welsh agriculture. Look at all the traders and businesses exhibiting at the Fair today. Any delay in the payment of the Basic Payment would have a direct impact on these businesses and their employees."
