Montgomeryshire Assembly Member, Russell George, said that the Welsh Government’s plans to move nearly £290m way from direct farm production, may lead to the Welsh farming sector becoming ‘uncompetitive’ in Europe.
The AM made the comments following the publication of the Welsh Government’s changes to the delivery of the Common Agricultural Policy (CAP) in Wales. The Minister for Natural Resources and Food, Alun Davies AM, announced his decision on some of the main features of policy implementation, which included a transfer of 15 per cent from Pillar 1 (farm production) to Pillar 2 (rural development).
Commenting, Mr George said:
“While I welcome a number of the proposed changes brought forward by the Minister, particularly improving the entrance scheme for young farmers, it could all be undone by the 15 per cent transfer from Pillar one to two.
“I think the sector understands the need to move to a more long-term, sustainable footing and that there has to be additional, tangible benefits to our environment from CAP payments beyond food production – not just for crucial habitat enhancement but also for projects to help mitigate future flooding incidents.
“However, the rate modulation of 15% compared with other counties, not just in the UK but across Europe, is concerning and could potentially hamstring an industry already struggling.
“I think a more sensible approach would have been to scale the transition, as is being done in England, in order to both minimise the direct financial impact but also to allow more time to properly analyse and evaluate the changes, particularly on competiveness.
“I also believe Welsh farmers would be more supportive of this funding change if they knew exactly what the Welsh Government intends to do with that extra £286m being transferred to Pillar 2 and how that money was going to find its way back to support and benefit the industry.
“How is it going to help businesses to sustainably diversification; will capital grant support be increased, how will it help develop and enhance sector skills?
“These are the issues that Welsh farmers want addressed.
“Now that the decision has been made it is imperative that Welsh Ministers work closely with the agricultural sector and use everything at their disposal to minimise the impact of this announcement.
