WELSH farmers are to be denied the chance to make thousands of pounds in extra revenue this year as the Welsh government decides not to relax planning regulations affecting agritourism.

Despite launching a consultation into extending Permitted Development Rights in February 2022, Pitchup.com believes the Welsh government has opted not to go through with the change due to ‘limited resources’.

However, the issue might be revisited in the future, Pitchup.com believes.

According to Dan Yates, founder of Pitchup.com, the move could cost Welsh farmers thousands of pounds this year, and the wider Welsh rural economy millions of pounds.

He said: “This was a real opportunity to make a huge difference to farmers who are currently going through the biggest financial turmoil in decades, as well as the wider rural economy which is still recovering from the COVID pandemic.”

Permitted Development Rights enable farmers and other landowners to set up temporary campsites on their land for 28 days per year without needing to apply for further planning permission.

However, in June 2020, the Westminster government temporarily extended this to 56 days per year to help the rural economy recover from the COVID pandemic and to provide increased capacity for people unable to holiday abroad. The Welsh government made a similar move in April 2021, extending the limit to 56 days for the rest of the year.

The scheme was such a success, generating more than £25m for the UK rural economy in 2021, that it prompted the Welsh government  to launch a consultation into permanently extending PDR to 56 days, in February 2022.

The Welsh government has remained tight-lipped on the consultation since then and so far has made no public announcement on the outcome, despite promising one in 2022.

But sources close to the Welsh government have told Pitchup.com a decision to keep the allowance at 28 days has been taken.

Dan Yates said: “The saga of the Welsh government consultation into PDR has been dragging on well over a year now, without any meaningful updates. But we have it on very good authority – sources close to the government – that the change has been canned, for this year at least.

“The government seems to be citing a lack of resources as the reason the change won’t happen, but this seems at odds with the length of time the consultation has been going on. Surely, over the course of the past 16 months, they could have found the time to make a decision?

“Farmers have limited resources too, now more than ever as farm payments are being wound down, and this unfortunate news means the opportunities to bolster their income are further diminished, as is that of the communities that surround them, which would have benefitted from an increased tourism spend.

“We can only hope the Welsh government realises the opportunity extending PDR would bring to Wales’s rural communities and revisits the issue as soon as possible.”

Currently, the Westminster government is consulting on extending PDR in England to 60 days per year, but putting a 30-pitch cap on campsites wanting to open for the full 60 day term.

No such consultation is taking place in Scotland, nor has the Scottish government announced it intends to make any changes to the regulations governing pop-up campsites.

However, out of all the countries that make up the United Kingdom, figures suggest Wales would benefit the most from extending Permitted Development Rights.

That’s because 34% of holidays in Wales involve camping or caravanning, compared to just 20% in England and 21% in Scotland.

“When people visit Wales, they’re looking for an outdoor, back-to-nature, kind of experience,” Dan Yates said.

“Our data shows demand for these experiences is on the rise. Bookings for camping holidays in Wales are up 33% this year compared to last, and as the cost-of-living crisis continues, we believe this will increase as camping offers the best value for money for cash-strapped families.

“Therefore, extending the opportunities to do this would have had a marked impact on Welsh tourism and the rural economy, as well as giving people the opportunity to have an affordable holiday in a beautiful country.” 

Temporary or pop-up campsites are one of the quickest, easiest and most lucrative forms of diversification projects open to farmers.

The most basic sites only need running water and toilet blocks to operate, yet generate on average around £13,000 per annum in extra revenue for a farm, while having very little impact on the day-to-day workings of the farm business.

Many temporary campsites operating on working farms generate in excess of £50,000 annually - Wales’ top-selling working farm earned £82,000 from its popup in 2021 - and those at the top end in the UK’s most visited beauty spots can earn more than £100,000.

Last year, the most successful farm-based campsite on Pitchup.com turned over £378,000.