THE European Court of Auditors (ECA) has criticised the European Union’s agricultural subsidy scheme, finding a “noticeable gap” between current farming incentives and the EU’s overall environmental targets. This review of the Common Agricultural Policy (CAP), published on Monday, revealed significant shortcomings in aligning farming practices with the EU Green Deal’s climate objectives.

The CAP, periodically revised and most recently updated in 2021 after the introduction of the EU Green Deal, allocates a massive €378.5 billion (£328 billion) for the 2021-2027 period. This budget accounts for nearly a third of the EU’s total expenditure, making it a key tool in the EU’s fight against climate change. Agriculture is responsible for 13% of the bloc’s greenhouse gas emissions, with more than half of these emissions attributed to livestock.

However, the ECA report found that the European Commission currently lacks the capacity to measure the contribution of agriculture to its climate targets, aside from organic farming. The lack of consistent metrics and incentives within the CAP has made it impossible to track progress toward the Green Deal’s 2030 targets effectively.

“Our examination of the Commission’s assessment of how the member state plans are aligned with the 2030 Green Deal targets reveals that the Commission cannot – except for organic farming – measure the extent of their contribution, and so cannot check whether they align with targets,” the ECA concluded.

The ECA also noted that some climate-friendly funding rules within the CAP had been watered down following farmer protests earlier this year. This dilution of policy has further hindered the CAP’s ability to drive meaningful environmental change across the agricultural sector.

Additionally, the ECA highlighted that the EU’s climate goals have not been fully integrated into CAP legislation. Important result indicators are either missing or vary too significantly between member states due to differing definitions and measurement methods, making it difficult to gauge any real progress.

In response to these issues, the EU’s ombudsman launched an inquiry this month into whether the European Commission breached its own rules by altering CAP funding terms. This action followed a complaint by environmental activist group ClientEarth and others. ClientEarth is also pursuing legal action against Germany for failing to enforce EU pesticide regulations.

The ECA’s findings add pressure on the European Commission to overhaul the CAP to ensure it can effectively contribute to the EU’s climate goals, emphasising the need for more robust and standardised monitoring mechanisms across member states. With agriculture being a crucial sector in the EU’s climate strategy, this report underscores the urgent need for policy reforms that align farming practices with the bloc’s green ambitions.

WALES is falling behind England in the development of farm tenant policy due to a post-Brexit decision by former Welsh First Minister Mark Drakeford not to expand the capacity of the civil service, according to the Tenant Farmers Association (TFA).

George Dunn, Chief Executive of the TFA, has highlighted that several key measures, including the tenant and landlord code of practice, the Farm Tenancy Forum, and the proposed tenant farming commissioner, have all been implemented in England but not in Wales. He urged the Welsh Government to outline a plan for fulfilling its devolved responsibilities in this area.

“The problem Welsh Government has got is capacity,” said Mr Dunn. “They would say in their hearts they are keen to do more, but practically speaking, without proper resource, they are going to struggle. The real issue is that the previous First Minister, Mark Drakeford, didn’t take the opportunity to ramp up the capacity of the Welsh Government in light of the Brexit vote.”

He further pointed out that while the Department for Environment, Food and Rural Affairs (Defra) in England increased its staff to cope with post-Brexit changes, the Welsh Government “almost carried on as if Brexit never happened.” This decision has now left Wales lagging in farm tenancy reforms. “This goes back further than the current budget crisis, but that of course won’t help,” added Mr Dunn.

In response to these concerns, last week the Welsh Cabinet Secretary for Rural Affairs, Huw Irranca-Davies, addressed a series of written questions from Plaid Cymru MS Llyr Gruffydd regarding whether the Welsh Government was considering introducing a code of practice and a tenant farming commissioner.

Mr Irranca-Davies stated that while the government had considered the recommendations, they have so far focused on areas identified as priorities by stakeholders, such as new dispute resolution procedures for farm business tenancies. He also mentioned that Welsh Government officials are currently assessing the relevance and potential impact of the remaining recommendations within a Welsh context.

This lack of progress in Wales contrasts sharply with developments in England, where the establishment of a tenant farming commissioner and other policies have been prioritised post-Brexit. The situation has raised concerns among tenant farmers in Wales, who fear they are being left behind in policy support compared to their English counterparts.

The TFA’s call for action underscores the need for the Welsh Government to address the gaps in farm tenancy policy, particularly in light of the changes brought about by Brexit. As farming stakeholders wait for concrete steps, the debate continues over how best to secure the future of tenant farmers in Wales amidst growing economic and policy challenges.

IN a meeting this week with the First Minister and Deputy First Minister, NFU Cymru has outlined the importance of a budget for Welsh farming that will help the sector meet its ambitions for food, nature, climate and communities. 

NFU Cymru was pleased to have the opportunity to meet with Eluned Morgan, First Minister of Wales, alongside Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs, Huw Irranca-Davies. Top of the agenda was funding for agriculture and progress on the development of the Sustainable Farming Scheme.

Highlighting key challenges

Speaking after the meeting, NFU Cymru Deputy President Abi Reader, said: “I was delighted at the opportunity to have an early meeting with the new heads of Welsh Government, an opportunity for NFU Cymru to highlight some of the challenges that Welsh farming currently faces but more importantly the opportunities we have to be world leaders in the production of climate friendly food.

“We are immensely proud to be the cornerstone of a Welsh food and farming sector worth £9.3 billion to Wales, part of a food and drink industry that employs 228, 500 people, 17% of Wales’s workforce, with over 50,000 employed on farm.

Ambition

“We have an ambition to further grow the sector both in terms of value and jobs. Producing high quality, safe and affordable food, growing established, and building new, markets at home and abroad with Welsh farming being the driving force behind vibrant rural communities.

“Our discussions today focussed on securing a multi-year budget for Welsh farming, a budget that, in totality, needs to increase to around £500m annually just to keep pace with inflation. With the Rural Affairs Budget subject to the largest cuts of any Welsh Government department last autumn, it is imperative that this budget is restored, and inflation taken into account when the Welsh Government draft budget is published later this year. Welsh farmers are being asked to deliver more than ever before in relation to food security, nature and climate, government must provide the funding to ensure we can meet our ambitions.”

The meeting also provided an opportunity to discuss the Sustainable Farming Scheme, Abi Reader said: “We very much recognise the commitment being made by the Deputy First Minister to partnership working and NFU Cymru is pleased to be a part of ongoing discussions within the Ministerial Roundtable, Carbon Sequestration Panel and Officials Working Group, it is vital that the outputs of these groups help deliver a scheme that works for all sectors and all farm types.

BPS maintained for 2025

“We have welcomed the commitment the Cabinet Secretary has made to maintain the BPS for 2025, providing much needed stability and certainty to farmers and all those in the supply chain that rely on Welsh farming for so much of their income. This decision has provided the breathing space to allow for the design of the SFS that must deliver at least the same level of stability for farming, rural communities and the supply chain.”

In conclusion, Abi Reader said: “I was pleased to have positive and constructive dialogue with the new First Minister and Deputy First Minister today. We cannot get away from the challenges we currently face, but I welcome the willingness of the First Minister and Deputy First Minister to want to work with us on these matters. For our part NFU Cymru is committed to continuing to work in partnership to deliver a productive, profitable and progressive food and farming sector for Wales.”