Welsh Natural Resources Minister Alun Davies said on Friday that Welsh farmers could expect a 'fair' allocation of CAP funds.

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In a statement to Assembly Members in Cardiff on Friday, Davies said he was pleased that the UK Government had agreed with his proposals for splitting the UK's share of the Common Agricultural Policy (CAP) budget and that he welcomed the even handed approach they had shown.

The Pillar 1 budget will be allocated in the same proportion as it is now which will mean an annual budget of €322m (£270) by 2019 for Wales, based on current prices. This means all parts of the UK will take the same percentage cut of 1.6 percent against the 2013 budget.

For Pillar 2 Wales will receive €355m in current prices for 2014 -2020, an increase of 7.8 percent on the current 2007-20013 period.

Alun Davies said, "I believe this decision on CAP is a good result for Wales. Scotland had of course made a vociferous case to secure a much larger share of the UK budget pot.  I opposed that argument because I felt it was unfair to Wales and would have further reduced our share of CAP.

He continued, "I am very pleased that the Secretary of State agrees and has decided to split the UK budget in the way I proposed. Today's decision means that all parts of the UK will take the same size percentage cut on Pillar 1 and will benefit to the same degree from the uplift of the UK’s Pillar 2 budget ceiling.  This is welcome news and the fairest deal for Wales."

The Westminster government is currently consulting on Pillar two (rural development) spending and modulation, which could see up to 15 percent of CAP funds transferred from direct payments into the rural development pot.