Advance Basic Payment Scheme (BPS) monies have started landing in Welsh farm bank accounts, helping to ease the cashflow difficulties many are facing, and highlighting the value of direct payments to rural communities.
For the second year running, Rural Payments Wales (RPW) is making automatic BPS advance payments in October, with more than 15,600 Welsh farms receiving a share of more than £161m – equivalent to 70% of their estimated 2022 claim value.
Previously, BPS payments would have commenced on 1 December.
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The remaining 30% balance will be made from 15 December 2022, subject to full validation of the BPS claim.
However, about 3% of Welsh farmers will not benefit from the advance – for example, in cases where there is an ongoing land dispute, where cross-compliance breaches have been identified, or where there are outstanding probate matters.
Response
The advance payments have been welcomed by both farm unions in Wales.
NFU Cymru president Aled Jones said they were particularly important for farmers this year given the continued rise in the cost of inputs, which are putting extreme pressure on farmers’ margins.
“Latest government figures show that agricultural inputs have increased by around one-third over the past 12 months, with some fertiliser products having tripled in price.
“The drought this summer also means many farmers have suffered reduced harvests, resulting in having less crops to sell, and livestock farmers will need to purchase more feed to take them through the winter.”
Mr Jones also pointed to current national and global events, which highlighted the continued importance of the BPS to the Welsh farming industry.
“At a time when we are facing a global food crisis, the continuation of this stability payment is as important now as it has ever been and is why it is crucial that stability measures remain a key part of the long-term agricultural policy framework in Wales,” he said.
Farmers’ Union of Wales president Glyn Roberts pointed out that the early payment would also benefit other rural businesses.
Most of the BPS money arriving in farm accounts would go out in the coming weeks to other businesses involved in agriculture, such as agricultural suppliers and vets, thereby supporting tens of thousands of Welsh livelihoods and businesses, he said.
This demonstrated why it was so important such a financial mechanism remains in place as part of the future support for Welsh farming “in order to ensure that our farm businesses and the wider rural economy don’t suffer”.
Provision of a baseline payment within the proposed Sustainable Farming Scheme would offer stability for food-producing family farms and should account for the majority of the budget in any future policy, Mr Roberts said.
