FARMERS in Wales have warned that changes to the way agricultural support is calculated could see them lose millions in future funding, as allocations move from a needs-based system to one based on population size.

The Farmers’ Union of Wales (FUW) has criticised the shift, branding the move “nonsense” and “concerning,” arguing it fails to reflect the reality that Wales has more farms per head than England.

Under the former EU model, funding was distributed based on need. However, from 2025-26, support for Welsh farmers will be included in the Welsh Government’s overall budget and determined by the Barnett formula—a population-based mechanism.

Guto Bebb, Chief Executive of the FUW, told BBC Radio Wales: “This latest decision is very concerning because if there is any future increase in farm funding, Wales will be allocated a population-based 5.2% rather than the 9.2% share we previously received based on need.”

The change, announced in the UK Budget last October, has raised alarm bells among the farming community. Mr Bebb urged farmers and unions to ensure that politicians in Cardiff remain committed to backing what he described as a “crucial part of the rural economy.”

The First Minister, Eluned Morgan, had already voiced similar concerns earlier this year, warning the Welsh Affairs Committee in Westminster that the new model could leave Wales short-changed. “When it comes to agriculture, we should be significantly higher than 5%,” she said.

Despite the concerns, both the UK Treasury and Welsh Government have insisted the new settlement will benefit Welsh agriculture.

A spokesperson for HM Treasury said: “The Welsh Government is receiving over 20% more per person than the equivalent UK government spending in England. This translates to over £4 billion more in 2025-26. The full amount of agricultural funding from 2024-25 has been baselined into this settlement.”

Meanwhile, the Welsh Government said it welcomes having full discretion over agricultural support spending and confirmed that more than £366 million has been allocated this year—an increase from the previous year when farm funding was still ringfenced.

However, farming leaders remain sceptical, warning that the shift could jeopardise livelihoods in rural communities if funding does not continue to reflect the true scale and nature of Wales’ agricultural sector.

BIRD FLU restrictions requiring poultry and captive birds to be housed indoors in part of Shropshire have been lifted.

The measures were introduced in January following an outbreak of highly pathogenic avian influenza (HPAI) at Griffiths Family Farms, part of Oakland Farm Eggs, near Wem.

A 3km protection zone and a wider 10km surveillance zone were established around the site. The surveillance zone extended into the Wrexham local authority area.

The Department for Environment, Food and Rural Affairs (Defra) confirmed that disease control measures have now been completed. The area previously within the protection zone is now part of the surveillance zone only.

Around one million hens had to be culled at the site—one of the largest poultry farms in the UK—after the virus was detected in the flock.

Under protection zone rules, all poultry and captive birds must be kept indoors. Surveillance zone rules require premises to keep records of all poultry and egg movements in and out of the area.

Concerns mount over change to agriculture funding system

FARMERS in Wales say it is “nonsense” to base agricultural support on population size, warning the move will leave them worse off under the new funding system.

The UK government has decided to switch from the previous needs-based EU model to a population-based approach when allocating funding to the Welsh government. This change means the share of farm support Wales receives could drop significantly—from 9.2% to just 5.2%, according to the Farmers’ Union of Wales (FUW).

Guto Bebb, the union’s chief executive, said the decision was alarming: “If there’s any increase in agricultural funding in the future, Wales will only receive 5.2%—not because of need, but simply based on population. That is deeply concerning.”

The changes stem from the UK government’s October budget, which confirmed the adoption of the Barnett formula for distributing funds to devolved administrations. Under Barnett, Wales receives about 5% of additional UK government spending on areas it controls, like health and education.

Mr Bebb said it was vital for farming unions and rural communities to press the Welsh government to protect this key part of the economy.

The Welsh government previously expressed concern that switching to a population-based system would hurt Welsh agriculture. In February, First Minister Eluned Morgan told MPs on the Welsh Affairs Committee that farming should not be treated the same as other budget areas: “If you apply the Barnett formula, you get a 5% share, when in reality, agricultural need in Wales is far greater.”

However, both the UK and Welsh governments insist Wales is not losing out. An HM Treasury spokesperson said the Welsh government will receive over £4 billion more in 2025-26 than equivalent spending in England, and that agricultural funding had been “baselined” into the Welsh budget.

Meanwhile, the Welsh government said its current budget includes more than £366 million for agricultural support—higher than the amount provided in 2024-25, which was the final year the UK government directly ringfenced farm funding.

Still, concerns remain among farmers that future increases in UK-wide farming budgets will not trickle down fairly to Wales under the new rules.