AS OF TODAY, 94% of farmers have received their full or balance Basic Payment Scheme 2024 payment.

Over 15,300 Welsh farm businesses have received payments worth £66.88m, in addition to £160.52m paid as BPS advance payments since 14 October meaning that payments totalling £227.40m have now been made.

The Deputy First Minister and Cabinet Secretary for Rural Affairs, Huw Irranca-Davies announced in May that the Basic Payment Scheme (BPS) will continue for 2025 as part of the SFS Preparatory Phase.

Following the publication of the Welsh Government’s Draft Budget for 2025 – 2026 this week, the Deputy First Minister has also confirmed today a total budget of £238 million to provide direct payments to farmers in 2025 at the same level provided in 2024.

BPS 2025 is expected to be the final year of full BPS payments, with those farmers choosing to remain in BPS receiving a reduced payment per year during the SFS transition period starting in 2026.

The Deputy First Minister, said: “We are committed to continued financial support for farmers as they are at the heart of communities right across Wales, and they play a crucial role in our economy and food production. As stewards of our land, they play a key role in protecting and restoring nature and tackling the climate emergency.

“We live in uncertain and challenging times; however, you can be certain about this government’s steadfast commitment to supporting Welsh farmers to sustainably produce quality food, demonstrated today in the maintenance of the BPS budget, despite considerable financial pressures on other areas.

“I recently published an updated SFS Outline demonstrating the significant changes we have made to the proposed Scheme thanks to consultation feedback from the industry and an intensive period of work with the Ministerial Roundtable and other stakeholders. The changes address the needs of Welsh farmers, while supporting the ongoing sustainable production of food, as well as climate change and nature commitments. We will continue to listen to, and work with stakeholders as we progress the extra detail needed before we make any final decisions on the SFS next year.

“We will continue to support the sector in a managed transition away from BPS from next year onwards.”

Several SFS preparatory schemes have also previously been announced, including Habitat Wales Scheme, Habitat Wales Commons, Organic Support Payment, Farming Connect, a new Integrated Natural Resources Scheme. New application windows have or will shortly open for our successful Growing for the Environment, Small Grants Environment, Small Grants Efficiency, Small Grants Horticulture Start up and the newly merged Agriculture Diversification and Horticulture Scheme, with more to come in the New Year.

In addition, the first ever Multi-Annual Support Plan (“MASP”) was published today as required by the Agriculture (Wales) Act 2023. This is the first of many reporting requirements which will be publishing under the Act.

The MASP sets out the Welsh Government’s plan and suite of activity for future support, providing the agricultural sector with assurance and transparency and enabling the sector and its businesses to plan in five yearly cycles.

The plan describes each scheme that is intended to be in operation or expected to become operational during this period and provides a description of the support each scheme will provide.

THE FORMER leader of Pembrokeshire County council is to ask the current administration why pupils in the county were not allowed to take part in the ‘wellies to school’ protest against changes to inheritance tax on agricultural property.

The wellies to school spectacle was part of a wider November 19 protest, led by the National Farmers’ Union (NFU), held in response to the UK Government’s budget.

At the Budget, Chancellor Rachel Reeves announced farmers would have to pay inheritance tax on agricultural property and land worth more than £1 million at a rate of 20 per cent, with a £3m threshold for couples passing on their farms.

This compares to a 40 per cent rate on other estates.

However, Pembrokeshire schools were not allowed to engage in the wellies to school message.

A spokesperson for Pembrokeshire County Council said at the time: “The Education Act 1996 clearly prohibits practitioners from promoting partisan political views, and therefore, our schools are not permitted to promote the farmers’ protest taking place in London today.”

Former council leader Cllr Jamie Adams is now asking why the decision was taken.

In a question submitted to the December meeting of Pembrokeshire County Council, Cllr Jamie Adams says: “The recent spectacle of children wearing wellies to school on November 19, served as a powerful message that rural communities are concerned about the long-term sustainability of agriculture following the Government’s alterations to Agricultural Inheritance Tax.

“This widespread industry underpins the economy, social fabric, community cohesion and in many parts the Welsh language here in Pembrokeshire as much as any rural county due to the high prevalence of family farms.

“It was therefore concerning to hear that Pembrokeshire Local Education Authority sought to prevent children from overtly demonstrating their support by this action deeming it as ‘political’.

“I would therefore like to ask the Leader [Cllr Jon Harvey] how this position was adopted and who actually made the decision?”

Cllr Adams’ question will be heard at the December 12 meeting. 

A CALL on Pembrokeshire County Council to oppose the Labour Government’s changes to inheritance tax affecting family farms is to be heard later this week.

At the Budget, Chancellor Rachel Reeves announced farmers would have to pay inheritance tax on agricultural property and land worth more than £1 million at a rate of 20 per cent, with a £3m threshold for couples passing on their farms.

This compares to a 40 per cent rate on other estates.

A Notice of Motion by Councillor Aled Thomas, ‘relating to Protecting British Family Farms and Preserving Rural Communities’ is to be heard at the December 12 meeting of Pembrokeshire County Council’s full council meeting.

Cllr Thomas, who stood as a Conservative candidate for Ceredigion-Preseli in the 2024 general election, asks that: “Pembrokeshire County Council notes its concern to the proposed changes to inheritance tax announced by the Labour Government in the recent Autumn budget, which would scrap Agricultural Property Relief (APR).

“APR has been instrumental in allowing British family farms to remain intact across generations, supporting food security, sustaining rural communities, and aiding environmental stewardship. This tax is estimated to impact over 70,000 family farms, leaving the average farming family with a tax bill of at least £240,000, which will force many to sell portions of their land or close entirely, paving the way for corporate ownership over family ownership.”

It calls on the council to resolve to “oppose the Labour Government’s changes to inheritance tax affecting family farms,” to “advocate for the exemption of family farms to preserve the UK’s food security, rural communities, environmental initiatives,” and to “commit to maintaining its county council farms portfolio, particularly to encourage younger and new generations of farmers into the industry”.

It finishes: “This council urges all councillors to stand with Britain’s family farms, to support our rural communities, and to protect the environment by formally rejecting this proposed ‘family farm tax’.”

Cllr Thomas’s notice of motion will be considered at the December 12 meeting.

Claims were recently made, and denied, that Mid and South Pembrokeshire MP Henry Tufnell may have had insider knowledge of changes to Agricultural Property Relief recently announced by the Chancellor, with inferences it led to his wealthy landowner parents shielding their estate.

A spokesman for the Mid and South Pembrokeshire Labour MP said: “As has been widely reported, it would seem that even Steve Reed, the Secretary of State for DEFRA, was not aware of the specific changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) before the Budget was announced.

“It would therefore be implausible to suggest that Henry – a backbench MP – would have this kind of knowledge prior to the Chancellor’s Budget announcements before they were made public.

“The actions taken by Henry’s parents were based on professional advice from qualified financial advisers, reflecting prudent and responsible management of their family affairs.

“This is something that every farmer in Pembrokeshire should consider in light of the Chancellor’s recent announcements, to ensure they are prepared for the evolving landscape of farming taxation.”