Speaking in the National Assembly, the Minister set out his vision for farming in Wales and how direct payments to farmers will be allocated to Welsh farmers under Pillar one of the Common Agricultural Policy funding for 2014 -20, with a view to placing Wales' farming industry on the strongest footing for the future.

The Minister's announcement follows an extensive consultation exercise which included a series of well attended public meetings with farmers and landowners across Wales and close working with relevant bodies.  It has also been influenced by a reduced budget settlement from Europe.

The Minister said that  changes to the  Pillar 1 payment system, and complementary actions through  Pillar 2, (the Rural Development Programme), are  designed to  promote competitiveness, help farm businesses cope with unexpected setbacks and  respond to new market opportunities, and to strengthen Wales' natural resources.

Alun Davies said:

"These decisions on CAP policy are of huge importance for Wales and will have a significant impact on how we develop the agriculture industry and manage Wales' natural resources up to 2020 and beyond.

"I have listened carefully to feedback from my extensive consultation exercise and have considered how we can use CAP reform to strengthen Welsh farming. I have also taken on board important messages from the Kevin Roberts' review of farm resilience.

"Going forward there will be a new payment system, targeted action to improve   farm businesses and a revised Glastir programme to better support Welsh agriculture.

"My decisions are aimed at placing the Welsh farming industry in the best possible position to face the future with confidence. They will result in an industry that can make the most of new opportunities, increase productivity, and is better placed to cope with exceptional circumstances, such as the harsh weather experienced last spring.

"The new arrangements will also lead to a fairer and more transparent distribution of funding, with a move away from historic payments, and will help ensure we use and safeguard our natural resources more effectively."

The new Pillar 1 arrangements will be introduced from 2015 and will mean:

  • Transition to a new basic payment scheme over a five year period, so that by 2019 payments are  wholly based on the area of land farmed.
  • A payment system, and indicative payment rates, based on  three separate regions of  land that recognise different levels of  agricultural productivity. These are Moorland, (the least productive land), Severely Disadvantaged Areas, and one combined category for lowland and Disadvantaged Areas,  (the most productive types of land). 
  • Limits on large payments (capping).
  • Adoption of the European Commission's greening proposals based on the maintenance of permanent grassland, crop diversification and ecological focus areas.

The latest decision follows the Minister's December announcement that against the background of a challenging EU CAP budget settlement he would target action through the new RDP  and would  transfer 15% of the CAP budget from Pillar 1 (direct payments) to 2 (the Rural Development Programme) for the 2014-20 period.

distributed by