Farming News - FUW welcomes maintenance of direct support ceiling

FUW welcomes maintenance of direct support ceiling

05 Jan 2022
Frontdesk / Finance

The Farmers’ Union of Wales has welcomed the Welsh Government’s announcement that the 2022 direct payment budget will be maintained at 2020 and 2021 levels.

Minister for Rural Affairs and North Wales, and Trefnydd Lesley Griffiths announced on 23 December 2021 that a total direct payment ceiling of £238 million would be provided, in 2022, matching the budgets in 2020 and 2021.

FUW President Glyn Roberts welcomed the announcement, stating: “The minister’s decision recognises the importance of the direct support budget not only to the 16,000 or so farm businesses that rely on it, but also the many more tens of thousands of businesses that benefit from these payments.”

Mr Roberts said that hundreds of thousands of Welsh people employed directly and indirectly in the agricultural and food supply chains would benefit from the funding.

“We therefore very much welcome the fact that the minister has recognised the concerns we have raised in terms of the importance of this funding not only for farming families but for Wales’ wider communities.”

Mr Roberts added that he shared the Welsh Government’s frustration and anger that the UK Government’s promise to replace EU funding in full had been broken.

“Welsh farmers have already lost £137 million as a result of the autumn 2020 spending review, and in November 2021 it was announced that the budget for agriculture would be cut by a further £106 million compared with what was promised.

“Farming budgets in the EU are not facing such cuts, yet we were promised that no cuts would result from Brexit.  So we share the Welsh Government’s frustrations and concerns - particularly in light of the rising barriers for our food exports to the EU and the threat posed by our competitors, whether in the EU or through new trade deals,” he added.