NFU Cymru calls for further clarity around Habitat Wales Scheme budget

The minister for rural affairs Lesley Griffiths announced this Monday (25th September) that applications for the Habitat Wales Scheme will open on Friday 29^th September, with contracts commencing in January 2024.

The scheme is meant to ensure a seamless transition from the end of Glastir in December 2023 until the start of the Sustainable Farming Scheme in 2025 and will be available to all eligible farmers, including Glastir Advanced, Commons and Organic farmers, the minister has confirmed.

However, details around the budget for this new interim scheme are still unclear, and NFU Cymru said this ambiguity is unsettling for those considering entering the scheme, particularly the thousands of farmers who have previously held Glastir contracts.

NFU Cymru Rural Affairs Board Chairman Hedd Pugh said: “As developments unfold we are increasingly anxious for Glastir contract-holders, many of whom have been participants in agri-environment schemes for decades and who have adapted their businesses as a result, who could well lose a significant part of their income in 2024.

“We’ve had no reassurances that the new, interim scheme will match levels of income currently received through Glastir.”

In her statement, the minister reminded the public that the financial position of the Welsh Government is up to £900m lower than was predicted at the last spending review in 2021, which she wrote is due to ‘very high inflation and energy prices and the mismanagement of the economy by the UK Government.’

She added the Cabinet has been working throughout the summer to try and mitigate these budgetary pressures and will be confirming the budget for the scheme once this work has completed.

Meanwhile, Mr Pugh highlighted it will be difficult for farmers to commit to the scheme when payment rates are still unclear.

“For an industry that is so reliant on certainty and long-term planning – and having weathered significant financial storms and volatility in the last year – it is very difficult for farmers to make a commitment to this scheme when we still don’t know the budget available with only three months until the scheme begins,” he said.

“To maintain the confidence of farming in the proposed direction of travel, the budget of around £35m for agri-environment must be at least maintained.”

Update: FUW “extremely concerned” over scheme budget

On 2^nd October, the Farmers’ Union of Wales (FUW) has repeated its concerns that there is still no clarity around the budget available for the Habitat Wales Scheme, which launched on Friday 29^th September 2023.

It is understood that more than 17,000 Welsh farmers may be eligible to apply for the scheme, which is set to replace former Glastir payments.

FUW president Ian Rickman said: “We are extremely concerned by the lack of clarity on the budget available. The uncertainty for farming business is immense and no business should be expected to operate under such circumstances.”

He pointed out that confirmed payment rates for the new scheme are on average 45% lower than payments for habitat land under Glastir Advanced.

“Reduced payment rates along with the loss of whole farm management payments and support for capital works means that those currently in Glastir will receive significantly smaller payments next year if they decide to enter the scheme.

“In addition, due to time constraints, the Welsh Government will not have the ability to deal with mapping issues or offer a second round of contracts beyond 1 January 2024, even if the budget allowed,” he added.

While the FUW said it understands the pressures on the rural development budget, not least as a result of cuts made by the UK Government, it is essential that the Habitat Wales Scheme receives at least as much funding as the schemes it will replace.

Members who are concerned about the application forms are encouraged to speak to their local county office.